Credit Card Skimming

Credit card skimming fraud and fraud in general is a serious national issue. Americans lose over $1 billion each year to credit card fraud. The fraudsters continue to look for new ways to steal your money. It’s up to you to stay informed and be aware of ways your credit card information can be stolen.

Credit card Skimming as defined by the FBI “Skimming occurs when devices illegally installed on ATMs, point-of-sale (POS) terminals, or fuel pumps capture data or record cardholders’ PINs. Criminals use the data to create fake debit or credit cards and then steal from victims’ accounts. It is estimated that skimming costs financial institutions and consumers more than $1 billion each year.”

Fuel Pump Skimming 

• Fuel pump skimmers are usually attached in the internal wiring of the machine and aren’t visible to the customer.
• The skimming devices store data to be downloaded or wirelessly transferred later.

Tips When Using a Fuel Pump

• Choose a fuel pump that is closer to the store and in direct view of the attendant. These pumps are less likely to be targets for skimmers.
• Run your debit card as a credit card. If that’s not an option, cover the keypad when you enter your PIN.
• Consider paying inside with the attendant, not outside at the pump.

The FBI goes further into detail on the subject. You can read the article here.

Protect Yourself

People, including myself, like convenience. The convenience of not carrying cash and just using our credit or debit cards everywhere has become commonplace for most of us. However, that convenience has made it easier for fraudsters and scammers to collect the necessary credit card information and use it to steal your money. I’ve even been scammed once, at a gas pump credit card reader. Yes, even a seasoned investigator can become a victim to credit card fraud. And no, to my knowledge the fraudster was never caught.

Most people don’t worry about using their credit cards because they believe their banks will make it right and give them their stolen money back. And in most small cases, that’s true. However, the legislation that started the credit card chip campaign was not designed to protect the public, its primary focus was to protect the banks. By law, the banks are not obligated to refund you any of the stolen funds. And in the case of very large fraud attacks where the fraudster stole thousands of dollars, it can take months to get your money back. And even then, there’s no guarantee that you’ll see your money again. Banks don’t like to lose money.

To mitigate the chances of becoming a victim of fraud, become informed and use cash. You can also read more about ways to protect yourself from fraud here. Also, check out more fraud alters to be aware of.

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Key Takeaways

• Credit Card Fraud is a national issue.
• Credit card skimming occurs when devices illegally installed on ATMs, point-of-sale (POS) terminals, or fuel pumps capture data or record cardholders’ PINs. Criminals use the data to create fake debit or credit cards and then steal from victims’ accounts.
• Fuel pump skimmers are usually attached in the internal wiring of the machine and aren’t visible to the customer.
• Choose a fuel pump that is closer to the store and in direct view of the attendant.
• Run your debit card as a credit card.
• Consider paying inside with the attendant
• To mitigate the chances of becoming a victim of fraud, become informed and use cash.

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