Using credit or debit cards for transactions is much easier and better for transactions than carrying paper currency and changes in our purses. While on one side, plastic cards have made our lives easier, the other side is related to credit card frauds like skimming and stealing pins, etc. It is not a good world, and you cannot give your credit card to someone assuming nothing bad can happen. With devices as low as $50 being sold on eBay and elsewhere, skimming of credit cards was never easier. The data obtained thus can be sold to others in the Darknet or used to create counterfeit cards for personal gains.
What is Credit Card Skimming
Reading your credit card’s data that is stored in the magnetic strip part using illegal means is called credit card skimming. There are different types of devices available in the market for this purpose. These types of readers cannot be banned as they are not illegal. These mini devices can fit into your pants pocket and serve anyone willing to steal and store the data. Once the data is obtained, it is not hard to get the related PIN code.
Read: What is Costco Data Breach?
Sometimes, the pin code can be obtained by producing counterfeit pin pads where the unsuspecting person enters his or her pin that is stored in the device. ATM skimming is a crime where a plate is placed on the place where you swipe your credit card. Even before the ATM can read your cards’ data, the plates read the data and either store it locally or send it to other computers wirelessly. A plate is placed horizontally in the slot carefully. As soon as you enter the card, the illegal plate first reads the data and then the ATM machine. The same technique can be employed at gas stations, etc. that require credit card information.
Read: How do you protect yourself against Carding credit card fraud?
Stealing the Credit Card PIN
This popular method uses heat-generated points. A pin pad, when pressed, will not show any physical signs after entering the pin. But if a person employs special eyeglasses, he can see the green light on the keys pressed. This light is heat generated by pressing the keys. Then, the criminals can create a combination. Also, since the pin pressed first will be less hot than the key pressed at last, it becomes easier to create combinations using special glasses. In other words, the key pressed at first will give away lower-intensity light signals, while the key pressed at last will be greater.
Another popular method is to employ a pin camera. A small camera—invisible to users—is placed over the pin pad and can be used to steal credit card pins. The camera can hold or transmit the data to remote computers using wireless signals.
Read: What Are EMV Credit Cards?
Protect yourself from Credit Card Skimming fraud
There are several methods listed on different websites related to credit card skimming. I have collected some methods for you here:
1] Do not allow people to take credit or debit cards away from your sight. In restaurants etc., waiters take away the card inside. You do not know what they are doing inside. They may use one of the skimming devices to steal your data. It is always better to accompany the waiter. For some credit card companies, entering a pin is necessary so you will be required to be present when the card is swiped. The best method is to go to a restaurant where they use to bring the portable machines to your table.
2] It could be a trap if you are asked to swipe the card twice or enter the pin twice. You may want to pay up in cash instead. If a device looks suspicious, do not allow swiping until you have proper information about the device.
3] For protecting pins, keep the hand over the pin pad after entering your pin. That way, people using special glasses to decipher your pin using the heat method will fail. Keeping your hand on the pin pad will heat all the buttons and thus, you can foil their attempt to read your pin using heat waves.
4] Finally, keep checking your financial statements regularly. This will reveal any transactions that were not yours or yours. If you find anomalies, inform the card company and get the card replaced. In some cases, you may also get your money back.
What to do if you think your card has been skimmed?
If you believe your card has been skimmed, first call your bank or card issuer using the number on the back of your card. Report the fraudulent activity and request to freeze or cancel your card. This will prevent unauthorized transactions and help safeguard your account from further fraud.
Can credit cards be scanned while in your wallet?
Yes, RFID-equipped credit cards can be scanned while in your wallet. These cards use wireless technology to facilitate transactions, allowing them to be read by nearby RFID readers, potentially even through wallets or clothing. To protect against unauthorized scanning, consider using RFID-blocking sleeves or wallets.
Credit Card Skimming frauds have led to a new type of cybercrime named FormJacking. We have discussed what FormJacking is and its prevention in the linked article.
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