How To Protect Yourself From Credit And Debit Card Skimmers
Jul 11, 2014 03:25:18 #
Protect Yourself From
Credit And Debit Card Skimmers
I know you love using your credit or debit card. Plastic money is a great convenience. But that convenience comes at the price of great risk. The bad guys are lurking to skim your bank account... with your credit or debit card.
They're making a lot of money doing it. The Secret Service says credit and debit card skimmers steal as much as $3 billion a year from unsuspecting card users. And it's getting easier and safer for them to do it, as evolving technology works in their favor. ATM machines and gas pumps have become their favorite targets.
"It's an easy way to steal money with no guns or blood involved, and it's also more lucrative than stealing credit card data to sell on the black market," says Avivah Litan, a senior analyst at Gartner Research, a firm specializing in fraud detection and prevention.
Card skimmers have been around for quite a few years. With some variations in the mechanics of how it's done, they work basically the same way, capturing your account information from the magnetic stripe on the back of the card and your PIN number either by a thin, fake keypad overlay or, more commonly, a tiny, hidden camera. With that information, they can then make fraudulent purchases or manufacture counterfeit "white cards" to drain your bank account at an ATM.
In the past, the main targets for the skimmers were retail store card readers at the checkout counters. But that entailed a fair amount of risk for the bad guys, made even riskier by the proliferation of security cameras. Now they're attacking safer and easier targets: ATMs and gas pumps.
Outside ATMs, especially if they're relatively remote, and gas pumps have become the favorite cash cows for thieves because there's less risk of being seen tampering with them and because they usually get a lot of traffic. Gas pumps are especially attractive because the detection device can be installed inside the pump where it can't be seen by the customer or even employees of the service station or convenience store. There are a limited number of master keys for gas pumps, so all the thieves have to do is obtain a set of the keys, show up posing as maintenance technicians and open up the pump to do their dirty work free of suspicion.
Making their dubious task even easier, with wireless technology the bad guys don't even have to go directly to the infected machine anymore to retrieve the data, which increased their susceptibility to being caught. Now they only need to be within Bluetooth range to download the data they want.
"They just need to be within 30 feet of the skimmer, so one guy can go in to buy a Slurpee and distract the clerk while his partner sits in their car near the pumps downloading all of the stolen card data," said Al Pascual, senior analyst of security risk and fraud at Javelin Strategy & Research.
The skimming devices have become more sophisticated, cheaper and easier to get. You can even buy them online, although security experts say most of the online offers are basically scams to bilk clueless novice would-be thieves. They note, however, that if you dig deep enough online, you can find the real thing.
Another alarming variation on the skimming technology is the small pocketable skimmers that restaurant servers and store clerks can use to swipe your card on the way to the register when you're not looking. It takes only a couple of seconds. They can also read the three-digit security code on the back of the card while pretending to check your signature.
Skimmers from all over the globe are converging on the United States because America has lagged far behind Europe and the rest of the world in credit and debit card technology. The magnetic-stripe type of card common in the U.S. is decades old and highly vulnerable to skimming attacks.
Most other countries in the world have turned to "smart cards" that have multiple layers of security, including a chip that stores and encrypts the data, making it undecipherable to skimmers. In the first year after the smart card technology was introduced in France in 1992, total fraud losses dropped 50 percent and card counterfeiting plunged 78 percent. But American banks and retailers have drug their feet on adopting the smart card technology because of the cost of converting over to new hardware, implementing new software systems to collect the data, and issuing new cards to all customers, which number in the millions. The procrastination has made America the prime target for skimmers.
"As long as the shift to EMV is being put on the back burner in the U.S., we're going to continue to attract criminals from overseas who are withdrawing millions in cash-out fraud at ATMs in the U.S.," said Javelin security analyst Al Pascual.
The card skimmer thieves are a slippery bunch. They'll stake out a location for a short while, then move on. They're migratory and keep moving to reduce the chance of being detected for staying in one place too long.
It's difficult to protect yourself 100 percent from the bad guys. But I offer you these six tips on how you can minimize your risk of becoming their victim:
1. Pay with cash. The only foolproof way to avoid card skimmers is not to use a card.
2. Avoid remote ATMs. Get your cash from a bank teller or an ATM in a restricted-access foyer. ATMs with access from the street, particularly in remote areas, are most vulnerable to having skimmer devices attached.
3. Inspect the card reader. Look for any signs of tampering or equipment that doesn't look like it's part of the original construction. The devices usually are taped or glued on. If there are similar machines nearby, compare them to see if anything looks different. If in doubt, find another machine.
4. Don't use your PIN. If you can, use a credit card instead of debit card. It's not foolproof, but it's less vulnerable than a debit card. Most debit cards are also credit cards. If you have only a debit card, choose the credit card option on the gas pump instead of debit. If that option is not offered, cover the keypad with your hand as you enter your PIN so it can't be seen by a camera.
5. Avoid ATMs with extra signage or warnings. The warnings may actually contain the skimming device.
6. Monitor your accounts. If you haven't already done it, sign up for online access to your bank and credit card accounts. Check them frequently. Federal law protects you from credit card fraud, provided you report it quickly. Waiting to get your credit card or bank account statement could be too late. Ask your bank or credit card issuers if they offer text alerts on card activity; sign up for it if they do. Collateral damage from card skimming could be identity theft, which could take months for you to straighten out.
If you detect or suspect evidence of card skimming, don't bother reporting it to a clerk or employee. He probably won't have a clue what to do about it, and he may actually be a confederate in the scheme. Instead, report it to the police.
I think the most important message I hope you take away from this discussion is to be vigilant when using your plastic money. We all do it so frequently and without any thought that we take it for granted. Thieves know that, and they use our complacence against us. Train yourself to be suspicious about using a credit or debit card. Your behavior may seem a bit odd to some people, but it's better to raise a few eyebrows than to raise a thief's income.
Comments;
One very important thing that wasn't mentioned; any time you're in a restaurant or other business where you must give your debit card to an employee for them to swipe it, NEVER allow them to leave your sight with your card! If they insist that the card reader is "in the kitchen", politely tell them, "either bring the card reader to me, or I will take the card to the card reader, with NO exceptions.
The last time I was in an Olive Garden and the waiter said he would "be right back with my card", I told him that my card would NOT be leaving MY hands, and to either bring the card reader or get the manager; when the manager showed up, he thought he would convince me that I HAD to give the waiter my card; at that point I pulled out my cell phone, called the police, and the cops were there in 5 minutes! I can guarantee that guy will not be attempting to jerk any more customers around over their debit cards again any time soon! The cops really read him the riot act! Do not give ANYONE you don't know and trust your debit card.
Credit And Debit Card Skimmers
I know you love using your credit or debit card. Plastic money is a great convenience. But that convenience comes at the price of great risk. The bad guys are lurking to skim your bank account... with your credit or debit card.
They're making a lot of money doing it. The Secret Service says credit and debit card skimmers steal as much as $3 billion a year from unsuspecting card users. And it's getting easier and safer for them to do it, as evolving technology works in their favor. ATM machines and gas pumps have become their favorite targets.
"It's an easy way to steal money with no guns or blood involved, and it's also more lucrative than stealing credit card data to sell on the black market," says Avivah Litan, a senior analyst at Gartner Research, a firm specializing in fraud detection and prevention.
Card skimmers have been around for quite a few years. With some variations in the mechanics of how it's done, they work basically the same way, capturing your account information from the magnetic stripe on the back of the card and your PIN number either by a thin, fake keypad overlay or, more commonly, a tiny, hidden camera. With that information, they can then make fraudulent purchases or manufacture counterfeit "white cards" to drain your bank account at an ATM.
In the past, the main targets for the skimmers were retail store card readers at the checkout counters. But that entailed a fair amount of risk for the bad guys, made even riskier by the proliferation of security cameras. Now they're attacking safer and easier targets: ATMs and gas pumps.
Outside ATMs, especially if they're relatively remote, and gas pumps have become the favorite cash cows for thieves because there's less risk of being seen tampering with them and because they usually get a lot of traffic. Gas pumps are especially attractive because the detection device can be installed inside the pump where it can't be seen by the customer or even employees of the service station or convenience store. There are a limited number of master keys for gas pumps, so all the thieves have to do is obtain a set of the keys, show up posing as maintenance technicians and open up the pump to do their dirty work free of suspicion.
Making their dubious task even easier, with wireless technology the bad guys don't even have to go directly to the infected machine anymore to retrieve the data, which increased their susceptibility to being caught. Now they only need to be within Bluetooth range to download the data they want.
"They just need to be within 30 feet of the skimmer, so one guy can go in to buy a Slurpee and distract the clerk while his partner sits in their car near the pumps downloading all of the stolen card data," said Al Pascual, senior analyst of security risk and fraud at Javelin Strategy & Research.
The skimming devices have become more sophisticated, cheaper and easier to get. You can even buy them online, although security experts say most of the online offers are basically scams to bilk clueless novice would-be thieves. They note, however, that if you dig deep enough online, you can find the real thing.
Another alarming variation on the skimming technology is the small pocketable skimmers that restaurant servers and store clerks can use to swipe your card on the way to the register when you're not looking. It takes only a couple of seconds. They can also read the three-digit security code on the back of the card while pretending to check your signature.
Skimmers from all over the globe are converging on the United States because America has lagged far behind Europe and the rest of the world in credit and debit card technology. The magnetic-stripe type of card common in the U.S. is decades old and highly vulnerable to skimming attacks.
Most other countries in the world have turned to "smart cards" that have multiple layers of security, including a chip that stores and encrypts the data, making it undecipherable to skimmers. In the first year after the smart card technology was introduced in France in 1992, total fraud losses dropped 50 percent and card counterfeiting plunged 78 percent. But American banks and retailers have drug their feet on adopting the smart card technology because of the cost of converting over to new hardware, implementing new software systems to collect the data, and issuing new cards to all customers, which number in the millions. The procrastination has made America the prime target for skimmers.
"As long as the shift to EMV is being put on the back burner in the U.S., we're going to continue to attract criminals from overseas who are withdrawing millions in cash-out fraud at ATMs in the U.S.," said Javelin security analyst Al Pascual.
The card skimmer thieves are a slippery bunch. They'll stake out a location for a short while, then move on. They're migratory and keep moving to reduce the chance of being detected for staying in one place too long.
It's difficult to protect yourself 100 percent from the bad guys. But I offer you these six tips on how you can minimize your risk of becoming their victim:
1. Pay with cash. The only foolproof way to avoid card skimmers is not to use a card.
2. Avoid remote ATMs. Get your cash from a bank teller or an ATM in a restricted-access foyer. ATMs with access from the street, particularly in remote areas, are most vulnerable to having skimmer devices attached.
3. Inspect the card reader. Look for any signs of tampering or equipment that doesn't look like it's part of the original construction. The devices usually are taped or glued on. If there are similar machines nearby, compare them to see if anything looks different. If in doubt, find another machine.
4. Don't use your PIN. If you can, use a credit card instead of debit card. It's not foolproof, but it's less vulnerable than a debit card. Most debit cards are also credit cards. If you have only a debit card, choose the credit card option on the gas pump instead of debit. If that option is not offered, cover the keypad with your hand as you enter your PIN so it can't be seen by a camera.
5. Avoid ATMs with extra signage or warnings. The warnings may actually contain the skimming device.
6. Monitor your accounts. If you haven't already done it, sign up for online access to your bank and credit card accounts. Check them frequently. Federal law protects you from credit card fraud, provided you report it quickly. Waiting to get your credit card or bank account statement could be too late. Ask your bank or credit card issuers if they offer text alerts on card activity; sign up for it if they do. Collateral damage from card skimming could be identity theft, which could take months for you to straighten out.
If you detect or suspect evidence of card skimming, don't bother reporting it to a clerk or employee. He probably won't have a clue what to do about it, and he may actually be a confederate in the scheme. Instead, report it to the police.
I think the most important message I hope you take away from this discussion is to be vigilant when using your plastic money. We all do it so frequently and without any thought that we take it for granted. Thieves know that, and they use our complacence against us. Train yourself to be suspicious about using a credit or debit card. Your behavior may seem a bit odd to some people, but it's better to raise a few eyebrows than to raise a thief's income.
Comments;
One very important thing that wasn't mentioned; any time you're in a restaurant or other business where you must give your debit card to an employee for them to swipe it, NEVER allow them to leave your sight with your card! If they insist that the card reader is "in the kitchen", politely tell them, "either bring the card reader to me, or I will take the card to the card reader, with NO exceptions.
The last time I was in an Olive Garden and the waiter said he would "be right back with my card", I told him that my card would NOT be leaving MY hands, and to either bring the card reader or get the manager; when the manager showed up, he thought he would convince me that I HAD to give the waiter my card; at that point I pulled out my cell phone, called the police, and the cops were there in 5 minutes! I can guarantee that guy will not be attempting to jerk any more customers around over their debit cards again any time soon! The cops really read him the riot act! Do not give ANYONE you don't know and trust your debit card.
Jul 11, 2014 04:01:33 #
Smart people use their credit cards for all transactions, building up points until they can cash them in for cash. They also check their balances online to see if any inappropriate charges were made.
I can imagine you making a scene in the Olive Garden. I'll bet they love to see you coming, you're so tough.
I can imagine you making a scene in the Olive Garden. I'll bet they love to see you coming, you're so tough.
Jul 11, 2014 17:30:14 #
dljen wrote:
Smart people use their credit cards for all transactions, building up points until they can cash them in for cash. They also check their balances online to see if any inappropriate charges were made.
I can imagine you making a scene in the Olive Garden. I'll bet they love to see you coming, you're so tough.
I can imagine you making a scene in the Olive Garden. I'll bet they love to see you coming, you're so tough.
#1. Smart people don't shoot their mouth off every six seconds!
#2. Smart people don't troll people's topics that they absolutely HATE, and constantly try to "stir up" s**t!
#3. Smart people don't become known by the "nick-name", "Donna the Dumb-Ass"!
#4. Smart people don't expect the whole world to "think" the same way stupid way THEY do!
#5. Really smart people don't waste half of their time, following someone they HATE all over a forum, trying to make a pain-in-the -ass out of themselves!
Guess what, troll woman........you fail on all 5 points, which PROVES that YOU aren't "smart"! You're an obnoxious, full-of-yourself FOOL! (You're also such a pain-in-the-ass that about half of the people on the forum have already quit because they can't stand your stupid mouth any longer; I'm guessing that given enough more of your hateful BS, everyone will quit, and I'm hoping that a hornet flies up your nose! (If one does, I HOPE you'll put a video of you trying to "get him out"! )
In the meantime, stick your index fingers up your nose and maybe it will keep the bugs out! (as your good-buddy, troll boy, always says, Hahaha! )
Jul 11, 2014 17:50:49 #
Gitzo wrote:
#1. Smart people don't shoot their mouth off every... (show quote)
When are you going to quit, glitzy? :XD: :XD: :XD: :thumbup: :thumbup: :thumbup:
Jul 11, 2014 18:01:51 #
dljen wrote:
When are you going to quit, glitzy? :XD: :XD: :XD: :thumbup: :thumbup: :thumbup:
Probably not before long after YOU drop dead!
Jul 11, 2014 18:05:37 #
Gitzo wrote:
Probably not before long after YOU drop dead!
You're so full of ... ummm, compliments, yeah that's it. :XD: :XD:
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