Credit card ‘skimming’ crimes on the rise l GMA

Summary

Skimming, a growing threat, costs consumers and financial institutions over a billion dollars annually. Criminals secretly install devices on payment terminals, stealing data from unsuspecting customers who swipe their cards. The U.S. Secret Service reports that skimming crimes, particularly in gas stations, ATMs, and stores, are on the rise. Criminals use three main methods: point-of-sale overlay terminals, gas pump skimming, and ATM skimming. To protect yourself, experts recommend using mobile wallets like Apple Pay or the tap feature instead of swiping, checking terminals for any unusual looseness, and staying vigilant against fraud.

Takeaways

• 😀 Skimming is a growing crime where criminals steal credit card information using hidden devices on payment terminals.
• 😀 The FBI reports that skimming costs consumers and financial institutions over a billion dollars annually.
• 😀 Criminals can place skimmers on gas pumps, ATMs, and point-of-sale terminals to collect data when customers swipe their cards.
• 😀 Skimming activity has risen significantly, particularly during the COVID-19 pandemic, as criminals took advantage of fewer in-person interactions.
• 😀 One common skimming method involves criminals using an overlay device on a credit card terminal to steal data from the magnetic stripe.
• 😀 The stolen data includes sensitive information such as account numbers, expiration dates, and cardholder names.
• 😀 The U.S. Secret Service has reported an increase in skimming crimes and is working to address these security threats.
• 😀 Protective measures include using tap payments or mobile wallets like Apple Pay instead of swiping credit cards.
• 😀 To identify potentially tampered terminals, check keypads for any loose or unusual feeling keys before using them.
• 😀 If a terminal feels suspicious or different from normal, it's best to move on and avoid using it.
• 😀 In addition to gas stations, skimming can happen at ATMs and point-of-sale locations, highlighting the need for vigilance in all areas of payment.

Q & A

What is credit card skimming?

Credit card skimming is a crime where criminals secretly install devices on payment terminals to steal data from credit cards when they are swiped. This stolen data is then used for fraudulent activities.

How much money does credit card skimming cost annually?

Credit card skimming costs consumers and financial institutions more than $1 billion every year.

What are some common locations where skimming occurs?

Skimming commonly occurs at gas stations, ATMs, and retail stores, particularly on payment terminals and card readers.

How does a skimmer device work?

A skimmer device is placed over or attached to a payment terminal. It secretly collects data from the magnetic stripe of a credit card when the card is swiped. The data includes sensitive information like the account number, expiration date, and cardholder's name.

What is an example of a skimming incident?

In Fresno, California, a criminal disguised as a construction worker installed a skimmer on a credit card terminal while his accomplice distracted the store employee. This allowed them to steal data from unsuspecting customers.

What are the three main avenues of skimming mentioned in the script?

The three main avenues of skimming are point-of-sale overlay terminals, gas pump skimming, and ATM skimming.

Which type of skimming is the most common?

Point-of-sale overlay terminal skimming is the most common type. In this method, a device is placed over an existing card reader to capture the information from the magnetic stripe.

How has the COVID-19 pandemic affected skimming crimes?

During the COVID-19 pandemic, criminals became more brazen in their activities, taking advantage of the circumstances where it was easier to commit crimes, such as wearing masks.

What is one way to protect yourself from credit card skimming?

One way to protect yourself is to use the tap feature on your credit card, as it does not involve swiping and is more secure against skimming devices.

What should you do if you suspect a skimming device is present at a terminal?

If you suspect a skimming device, check the keypad for any unusual looseness or abnormalities. If something feels off, avoid using the terminal and move to another one.