(card skim'ming) (n.) The act of using a skimmer to illegally collect data from the magnetic stripe of a credit, debit or ATM card. This information, copied onto another blank card's magnetic stripe, is then used by an identity thief to make purchases or withdraw cash in the name of the actual account holder.
Skimming works by replacing a card reader like an ATM with a camouflaged counterfeit card reader. The counterfeit reader records all of the data on a credit, debit or ATM card as it passes through the skimmer. In addition to ATMs, other locations where card skimming happens include restaurants, taxis or other businesses where an employee will take the card from the actual account holder in order to run the charge. In these instances, the thief has fitted the card reader with a skimmer, or uses a hand-held skimmer hidden in a pocket.
Stay up to date on the latest developments in Internet terminology with a free weekly newsletter from Webopedia. Join to subscribe now.
Webopedia's student apps roundup will help you to better organize your class schedule and stay on top of assignments and homework. Read More »20 Ways to Shorten a URL
If you need to shorten a long URL try this list of 20 free online redirection services. Read More »Top 10 Tech Terms of 2015
The most popular Webopedia definitions of 2015. Read More »
This Webopedia study guide describes the different parts of a computer system and their relations. Read More »Network Fundamentals Study Guide
Networking fundamentals teaches the building blocks of modern network design. Learn different types of networks, concepts, architecture and... Read More »The Five Generations of Computers
Learn about each of the five generations of computers and major technology developments that have led to the current devices that we use today. Read More »