Skimming is a technique used for identity theft to obtain the personal and financial information of the credit card user. There are a variety of methods used by criminals to obtain card data and personal information, including the most sophisticated method involving a tiny device known as a skimmer. It is able to read the information stored on the magnetic strip of a card or microchip.
How Skimming Work
It can happen anytime the user of a payment card in an brick-and-mortar establishment. The fraudsters may obtain information in diverse ways and the technology they employ is getting more sophisticated and difficult to spot.
Skimming permits the identity theft gang to obtain data from a cardholder which could be used to create fraudulent transactions. A few fraudsters will simply photocopy or digitally capture data that they can use to commit fraud. There are other more sophisticated technologies that are available, like skimming devices that are designed to be used in a variety of situations.
At brick and mortar stores where fraudsters are allowed to operate, they can employ an insignificant skimming device that lets them swipe a credit card and get details through its magnetic strip. Certain skimmers could also have a touchpad , which allows the perpetrator to enter an encryption code.
Thieves are also able to create skimming devices that could be utilized in automated ATMs (ATMs) as well as other locations that sell points of sale like gas stations. Skimming devices are installed on an ATM equipped with cameras, and overlay touchpads that can be added to collect individuals’ private identification numbers. The gas stations can be another location where skimming devices could be quickly installed as card readers are typically located at the pump and are separate from the checkout.
Mitigating Compromised Card Information
Cardholders need to be aware of suspicious devices that are associated in an online purchase. In certain circumstances skimmers are easily identified if the thief is using multiple devices to make transactions electronically.
To ensure that their card is not compromised, cardholders must maintain the card in their possession or keep it accessible at all time. Restaurants that offer the option of a collective checkout may aid in ensuring that a card’s security is not lost when it is taken away from the card holder.
