How Does Card Skimming Work?

Card skimming involves the use of a physical device installed on a merchant’s card reader to steal your card’s information. These devices can be found at gas station pumps, ATMs, and point-of-sale (POS) terminals. Criminals use these devices to steal information from benefits, EBT, debit, and credit cards. They can then sell the stolen card details or create counterfeit cards for purchases or withdrawals.

As technology evolves, so do the methods used by criminals. For instance, many cards now have an EMV chip that requires insertion rather than swiping. However, criminals have developed “shimming” devices that can copy some information from your card’s chip.

The basic premise of card skimming remains the same:

• A skimming device steals your card’s information. It may be placed on top of a card reader or inserted inside the card reader slot. These devices can be very small and well-hidden.
• A camera or keypad overlay steals your PIN. A hidden camera or a thin overlay on the keypad can record the PIN or ZIP code you enter.

Once installed, these devices can remain hidden and steal information for a long time. Criminals may periodically retrieve the stolen information using a wireless connection, sell card numbers online, or use them to create counterfeit cards for fraudulent activities.

How to Avoid Card Skimming

While it’s challenging to detect all skimming devices, you can take 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 that’s 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, although it may not stop a keypad overlay from capturing it.
• Compare nearby card readers: Look for differences in the 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 there’s a skimming device that moves or comes off.
• Check the security seals at gas pumps: Some gas stations use special security seal tape on their pumps. Avoid using your card if the 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’s information was stolen. In most cases, you won’t be responsible for unauthorized transactions if you report the compromised account right away.

The card issuer will close your card and send you a new one. If you use the card for automatic payments, update your card’s information with those companies to avoid missing a bill.

Monitoring your credit for unexpected inquiries or accounts is also important. Experian’s free credit monitoring service offers real-time alerts for key changes in your credit report and a free credit score tracker. You have the right to submit disputes to the credit bureaus if you spot any inaccuracies or potential fraud in your credit report.

Contact O1ne Mortgage for Your Mortgage Service Needs

At O1ne Mortgage, we are committed to providing you with the best mortgage services. Whether you’re looking to buy a new home, refinance your existing mortgage, or need advice on mortgage options, our team of experts is here to help. Call us today at 213-732-3074 to discuss your mortgage needs and find the best solution for you.