How to Prevent Credit Card Skimming: 6 Tips To Protect Yourself
Nearly half of all Americans have had their credit card information compromised in the past five years, according to Credit Donkey — 47% have reported fraud, totaling upwards of $28 billion in losses. And 73% of Americans say they are still worried about falling victim to credit card scams, according to Credit Repair.
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One of the ways in which scammers have had much success in recent years has been with credit card skimming, using a “device installed on card readers that collects credit card numbers,” especially when you use the magnetic stripe, per Forbes. The scammer then retrieves the info and uses it for their own purchases or sells the information to a third party. The criminal practice has happened at stores, ATMs, restaurants and gas stations.
It’s so common at gas stations, reports Lending Tree, that it’s changed how people pay at the pump. In a survey the site conducted, 15% of people said they were victims of credit card skimming while filling up on gas and 43% said the fear of being a victim changed how they paid at the station, whether using cash or using a credit card at an inside terminal rather than at the actual pump.
Part of the issue is that gas stations were one of the final points of purchase that upgraded to EMV technology, aka Europay, Mastercard and Visa, the three major credit card companies that created the standard for safer purchases, explains Tech Target.
EMV cards have an embedded microchip that the user can insert or tap to process the payment (rather than swipe) and then use a two-factor authentication process such as adding a PIN. Though they’re not foolproof, says U.S. News & World Report, especially since EMV cards still have magnetic stripes and if you are asked to use that method (if a chip reader isn’t working for example), you’re still at risk.
Even with the technological upgrades, fraud still exists, particularly at unmanned, self-service points of sale like ATMs and gas stations.
Some of the ways in which scammers might collect your info, says Forbes, can include a nearly invisible camera at an ATM that can see what numbers you input for your PIN, or a fake keypad placed over a real one to do the same. Sometimes there’s even a fake card reader that grabs the info. And now there’s newer technology called a “shimmer” that’s “tucked inside the slot of a card reader,” says U.S. News & World Report to steal the info.
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But, there are ways to protect yourself using smart practices, experts say. Here are their top tips:
Look around for any suspicious tip-offs. At the gas station, for example, be sure the card reader at your terminal looks the same as all the others (and is not bigger or smaller or has a different keypad). Also, use gas pumps in well-lit areas near the gas station kiosk — scammers will always install fraud devices at pumps that are harder to see.
Inspect the credit card reader. If it wiggles easily, the alignment feels off or the protective seal on the cabinet is broken, it might have been tampered with.
When using a debit card, run it as a credit card. This will avoid having to put in a PIN that can be compromised. If you must input a PIN, cover the information with your hand in case cameras are nearby. Using a credit card, in general, can also be helpful — if fraud happens, it won’t be “real-time” money that is stolen and it’s sometimes easier to fight these cases with credit card companies than with your bank.
Use cash or pay inside the terminal. One of the safer methods is to pay with cash where the currency isn’t traced to your bank account (but again, if you are getting cash from an ATM, use your hand to cover the screen and keypad when you type in the info). Paying inside a terminal at a gas station is also a good idea where there’s more quality control and a person running the point of sale.
Try a digital currency. Apple Pay, Google Pay, Venmo and Zelle don’t have the risk of info being skimmed though you need to be vigilant that the online info isn’t compromised either.
Pay attention to bank statements. Monitoring your bank statements is always a good idea to look for inconsistencies. In the case of card skimming fraud, even small transactions for a dollar or two can be a sign that the scammer is looking into the viability of your account and could be getting ready for a bigger purchase – unless you notice and report it to your bank to cut them off.
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This article originally appeared on GOBankingRates.com: How to Prevent Credit Card Skimming: 6 Tips To Protect Yourself
