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Credit Card Articles > Credit Card Skimming - How to avoid it
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Credit Card Skimming - How to avoid it |
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Credit card skimming is another way that thieves contribute to the $500 million per year credit card fraud debt. As credit card use increases, the pool that fraudsters can target and the methods used are becoming more advanced.
When you think of credit card fraud most people think of card theft, online fraud and the like. But thieves are becoming more and more creative as evidenced by the credit card skimming operation.
When credit card fraud happens, we all pay for it. Credit card companies increase fees such as the charge back fees and these are passed down to the consumer. Consumers must be extra vigilant when using their credit cards and even more careful when maintaining their financial information.
So What Exactly is Credit Card Skimming?
Skimming occurs when the data from your cards magnetic strip is copied electronically onto another credit card. Skimming is carried out when you hand over your card to someone such as the attendant in shops or the waiter in a restaurant. A replica of your credit card is then made which can be used anywhere in the world.
As if that was not bad enough fraudsters are now targeting cash machines and payment points.
Thieves manage to gather your electronic data by inserting a skimming device that looks very similar to the card slot into the cash machine. The device is often difficult to differentiate from the original cash machine card slot and contains a miniature camera that records your PIN.
The fraudster now has everything needed to abuse your credit card.
This can be very worrying and as consumers you must take the extra step to protect your credit card from unlawful abuse.
How To Avoid Being A Victim of Credit Card Skimming:
As long as there are people who want to cheat the system, the problem of credit card fraud would not go away. As a consumer you can take the following steps to protect your self:
When you are using your credit card, do not to let your card out of your site. If you can see your card this can reduce the chances of fraudulent activity.
Treat your credit card as securely as you treat your cash.
Monitor your credit card statement every few days and not at the end of the month only. This ensures that if your card was unlawfully used, you can catch it quickly and take the necessary steps to cancel your card and report any suspicious activity.
When you are at a cash machine check the machine carefully to see if there are any signs that the machine has been tampered with.
Always guard your PIN as thieves often hover around the cash machine to get a peek at your number.
When you leave the cash machine always take your receipts and if you must dispose of them, do so in a safe environment.
Cancel credit cards you do not use as you would not normally check the balances on these. If this card is stolen, you may not realize it soon enough.
We must use our credit cards on a daily basis, and the information in this article is not to stop you from doing so, but rather is intended to remind you of the risks that are out there and encourage you to be extra careful when using your credit cards.
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| Author: Jenniel Taylor-Samuel |
Posted: 2007-02-27 |
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