Protecting Your Finances: A Guide to Avoiding Card Skimming

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Understanding Card Skimming: How It Works and How to Protect Yourself

Card skimming is a method used by criminals to steal your card information through a physical device installed on a merchant’s card reader. These devices can be found at gas station pumps, ATMs, and point-of-sale (POS) terminals. They can steal information from various cards, including benefits, EBT, debit, and credit cards. The stolen details can then be sold or used to create counterfeit cards for fraudulent purchases or withdrawals. Here’s what you need to know about card skimming and how to safeguard yourself.

How Does Card Skimming Work?

Card skimming has been an issue for years, with methods evolving over time. As ATM and POS operators develop new ways to detect or block skimmers, criminals adapt with new techniques and devices. For instance, many cards now have an EMV chip that requires insertion rather than swiping the magnetic strip. However, criminals have developed “shimming” devices to copy some information from the chip.

The basic premise of card skimming remains the same:

• A skimming device steals your card’s information. These devices can be placed on top of or inside the card reader slot, often going unnoticed.
• A camera or keypad overlay steals your PIN. Hidden cameras or thin overlays can record the PIN or ZIP code you enter.

Once installed, these devices can remain hidden and steal information for extended periods. A 2022 FICO report found that skimming devices stole information from an average of 185 cards, often going unnoticed for over a week. Criminals may periodically retrieve the stolen information, sometimes using a wireless connection, to sell card numbers online or create counterfeit cards for fraudulent activities.

How to Avoid Card Skimming

While you can look for skimming devices whenever you use your card, detection alone isn’t always reliable. Here are some steps to protect yourself:

• Use the safest payment method available: Tapping your digital wallet or a contactless card is safer than inserting or swiping your card. If not an option, inserting the card’s chip is safer than swiping.
• Cover the pad when typing in your PIN: This can prevent cameras from recording your PIN, though it may not stop keypad overlays.
• Compare nearby card readers: Look for differences in number pads, such as odd colors or small holes, which could indicate a skimming device.
• Manipulate the edge of the device: Try pulling on the card reader or keypad to see if a skimming device moves or comes off.
• Check security seals at gas pumps: Avoid using your card if the security seal tape is broken or says void.

Using a credit card might be safer than a debit card, as credit cards aren’t directly tied to your bank account. You can also set up alerts for new transactions on your credit and debit cards to act quickly if fraudulent purchases occur.

What to Do if You’re a Victim of Card Skimming

If you notice unusual transactions on your credit card, bank account, or EBT account, contact the financial institution or your state’s benefits agency immediately. Dispute the transactions and inform them that your card information was stolen. In most cases, you won’t be responsible for unauthorized transactions if you report the compromised account promptly. The card issuer will close your card and send you a new one. Update your card information with companies for automatic payments to avoid missing bills.

Monitor Your Credit for Free

Card skimmers don’t collect enough information to steal your identity, but monitoring your credit for unexpected inquiries or accounts is crucial. Experian’s free credit monitoring offers real-time alerts for key changes in your credit report and a free credit score tracker. You have the right to dispute inaccuracies or potential fraud in your credit report.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We are here to assist you with the best mortgage solutions.

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