So, you take last month’s credit card statement out of the envelope, look it over and realize something’s wrong.
You see a string of charges that you know for a fact you didn’t make. There are stores you don't recognize in places you haven't visited.
Did you just become the victim of a credit card scanner scam?
So the damage has been done, but it’s not irreversible. Most credit card companies are willing to strike the unauthorized charges from your bill and refund your money—as long as you notify them within 60 days of the issued statement. But the real question is: If the card is still in my fanny pack, how did it happen?
Criminals employ a number of nefarious ways to lift your credit card and banking information without getting "go-go gadget arm" on your pockets (or fanny pack if that’s how you roll). Read below to find solutions to two forms of fraud that are widely talked about today—skimming and scanning.
How Does Credit Card Skimming Happen?
Skimming credit/debit card information at point-of-sale (POS) stations
While this scam has been around for several years, skimming is still a common method of credit card fraud. Skimming occurs at point of sale (POS) systems where debit and credit cards are used to make transactions, such as ATMs, gas pumps, andcash registers. More often than not, skimming is pulled off during legitimate transactions.
One example of skimming occurs when thieves use a "universal key" to open gas pumps and embed a device that captures card numbers. They also position a pinhole camera nearby that records the pin numbers. Fake cards are then encoded with the information and fiscal havoc ensues.
How do skim artists do this without getting caught? Sometimes it’s an inside job, orchestrated by an employee of the institution. Other times it is just good scouting; crooks pick stations that don’t have adequate camera surveillance. And any of those other instances in between, it’s the devil’s work. Seriously...
How Do Credit Cards Get Scanned?
Scanning radio frequency identification (RFID) chips on your credit/debit card
So what’s up with the microchip that’s implanted in all the credit/debit cards these days? Well, it’s actually a radio transmitter, and this type of technology has been around since WWII. RFID chip embedment is everywhere, from shoes (inventory management) to humans (for healthcare and security reasons).
Although banks claim that RFID chips on cards are encrypted to protect information, it's been proven that scanners—either homemade or easily bought—can swipe the cardholder’s name and number. (A cell-phone-sized RFID reader powered at 30 dBm (decibels per milliwatt) can pick up card information from 10 feet away.
And while there hasn’t yet been a recorded case of RFID fraud, many experts recognize that it would be difficult to track and that the verdict is still out as to how scanners will affect consumers in the future.
Tips to Protect Yourself From Credit and Debit Card Fraud
Skimming and scanning are totally avoidable fraud tactics. Keeping your guard up during transactions is a good place to start, but here are a couple more tips.
Preventing Credit Card Skimming
Skimming as a scam has endured for so long because it's so often successful. Try these tips for foiling card skimmers:
Don’t use free-standing POS terminals in badly lit or deserted areas. These are the most likely targets for skimmer action.
Deal directly with a teller or cashier when exchanging money. ATMs and other kiosks may be convenient, but you reduce your likelihood of being skimmed by avoiding them where possible.
Be on the lookout for damaged card readers. Any evidence of tampering should be seen as suggesting a fraudster may be at work.
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Preventing Credit Card Scanning
Whereas avoiding skimming attacks requires increased vigilance during transactions, bolstering your defenses against scanning attacks can be achieved with some gadgetry and strategy.
Buy a card sleeve or RFID wallet that blocks RFID transmissions
Stack your cards together to mitigate some of the scanner’s ability to read information
Leave your cards at home and only use cash in public places
While proactively outfoxing the fraudsters is an admirable plan of attack, it may not always keep you safe; crooks have a way of staying one step ahead of everyone. The best protection is being doggedly aware of your spending. This means religiously reading your credit card statements every month and keeping track of your receipts as points of reference. And as far as plastic goes, sometimes it’s just better to leave home without it.
When it comes to protecting against fraud and identity theft online, having an internet security solution with identity theft protection and secure browsing featurescan make the difference when it comes to online payments.
I'm well-versed in the realm of credit card security and fraud prevention, boasting a deep understanding of various methods utilized by scammers and the mechanisms behind credit card skimming and scanning. I can help dissect the complexities surrounding these fraudulent activities and provide insights into safeguarding against them.
The article touches on two prevalent forms of credit card fraud: skimming and scanning.
Skimming involves the illicit capture of credit or debit card information at the point of sale (POS) systems. Criminals utilize various techniques, like installing hidden devices on ATMs or gas pumps, to steal card details during legitimate transactions. They may also employ pinhole cameras to record PIN numbers. Skimming can occur due to compromised security, including an inside job by employees or exploiting loopholes in surveillance.
Scanning pertains to the use of RFID (radio frequency identification) technology embedded in cards. Despite encryption attempts by banks, scanners, either homemade or easily obtained, can intercept cardholder data from RFID chips. These scanners can read information from cards within a considerable distance, posing potential risks to consumers, although recorded cases of RFID fraud remain scarce.
To protect against skimming, individuals can:
- Avoid poorly lit or isolated POS terminals.
- Prefer direct transactions with cashiers instead of using standalone kiosks.
- Vigilantly inspect card readers for any signs of tampering.
For defense against scanning, measures include:
- Employing RFID-blocking sleeves or wallets.
- Minimizing scanner access by stacking cards together.
- Opting for cash instead of cards in public settings.
Staying vigilant by regularly reviewing credit card statements, keeping track of receipts, and considering security solutions for online transactions can provide an extra layer of protection against fraud and identity theft.
Understanding the intricacies of these fraud types and adopting preventive measures can significantly reduce vulnerability to credit card scams.
