The Credit Counseling Professionals

Credit Card Skimming: the Latest Credit Card Scam

Thieves can use card scanners to steal your identity

The massive breach of credit card information from TJX Corporation in Massachusetts grabbed national headlines. Orchestrated by nearly a dozen hackers, customer account information was accessed through wireless networks. Customers of TJMaxx, HomeGoods, Marshalls, and other stores were victimized. Recently another method of identity theft has increased in appearance. It’s called “skimming,” and it can happen almost anywhere from restaurants and retail stores to gas stations and ATMs. “Skimming” involves a portable card reading device that is placed on top of the normal devices in which you would usually swipe your credit or debit cards. Once swiped, the device will store all of your personal account information, later to be uploaded into a computer. From there, the thief can create a blank credit card with your information and proceed to make purchases and ATM withdrawals from your accounts.

One major problem is that these card readers are perfectly legal. They are typically used at conferences and trade shows where business and client information is collected from ID badges. Smaller retail stores may also use card readers to make sales. This makes it very hard to crack down on illegal use of the devices.

So what can you do to avoid being victimized by “skimming?” ACCC has the following advice to protect yourself:

1. Keep an eye out for any unusual objects, devices, loose wires, or anything out of the ordinary on the machines in which you swipe your card.
2. Always swipe the card yourself, or ask to witness your cashier/server swipe the card so you can watch for any suspicious activity or devices.
3. Whenever possible, use a credit card. The money stolen is insured, and your bank account information will not be accessed.
4. If you think your information has been stolen, check your account statements and alert your bank or credit card company.

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