Why that mp3 player is stealing your identity with skimming
Skimming is one of the
most widely used methods to commit credit card fraud and identity theft. This malicious practice costs consumers and
credit card companies more than $8.5 billion per year, a serious problem that
continues to evolve.
To truly help you
understand the dangers of skimming, we have provided a few clear cut example of
how it may happen:
Skimming in your waiter's jacket
You kindly hand over your
credit or debit card to a friendly waiter in a restaurant. Before taking the card to the official
processing terminal, the waiter swipes it through the small magnetic card
reader in their jacket pocket. By the
end of the night, that friendly waiter downloads the information on your card
in its entirety, shipping it to an underground distribution center for the
manufacturing of a fraudulent card.
After this card has been produced, it is almost impossible to
distinguish it from the real one.
That cell phone is stealing your identity
Skimming is made simple
by way of technology that lacks embedded encryption. This may be the case for a cell phone with
Javascript capability that is attached to a credit card reader. For instance, someone delivering packages can
use their Java enabled phone to operate alongside an official credit card
reader installed by the employer. When
configured properly, this type of application can transmit the credit card
information to servers overseas. From there,
the data is used to make thousands of fraudulent credit cards. In a scenario such as this, the delivery
person is usually given a cut for their skimming ability and the amount of
numbers provided.
Think twice about swiping twice
Several identity thieves
have used the act of skimming in mobile environments as well. Let's say that a delivery person activates
their application while in route to a consumer's door. Upon routine, the consumer hands the card
over, allowing the delivery person to swipe it through the terminal. The skimming application prompts a message
stating that there was an error reading the card. The consumer thinks nothing of it when asked
to swipe the card again. The truth is
that the first swipe actually reads clear and is instantly transmitted to an
illegal server. The second swipe runs
through the correct application, carrying out a legitimate transaction. The delivery person walks away with a smile
as the consumer has no clue of what just occurred.
An askew ATM machine
Imagine this: you walk up
to an ATM machine to withdrawal a bit of cash and observe that the card reader
looks different. Thinking nothing of it,
you insert the debit card, take the money and walk away. Little did you know that an identity thief
planted a skimming device into the machine.
Equipped with the details of your card, they now have all the
information needed to produce thousands of fraudulent ATM cards and clean out
your account. Some criminals will even
go to the extend of creating fake ATM machines to trap their victims.
How to Avoid Skimming
-keep an eye on suspicious individuals who may be
present when using your credit or debit card
-never allow a credit or debit card to be swiped
out of your view
-remain aware of unusual devices or card readers
attached to an ATM machine
