Credit card fraud is a multi-billion dollar industry. Skimming is one of the financial industry’s fastest-growing crimes, according to the U.S. Secret Service. ATM skimming alone is responsible for $350,000 of fraud daily exceeding a billion dollars in losses annually.
Skimming can occur in a few different ways;
The most common skim is when a store clerk/waiter etc. takes your card and runs it through a card reader device that copies the information from the magnetic strip. Once the thief has the credit or debit card data he downloads it to his PC then he can burn the data to a gift card or blank “white card” or place orders over the phone or online.
EFTPOS (electronic funds transfers at the point of sale) skimming occurs when the point of sale terminal is replaced with a skimming device. People commonly swipe both credit and debit cards through the in-store machines to pay for goods and services at these outlets. This is what happened to Stop and Shop. In Australia, fast food chains, convenience stores, and specialty clothing stores are bearing the brunt of the crime. McDonald’s is among the outlets whose EFTPOS machines have been targeted.
Criminals can also place a card reader device on the face of an ATM, which appears to be a part of the machine. The device may have wireless Bluetooth or cellular technology built to obtain the data remotely. It’s almost impossible for civilians to know the difference unless they have an eye for security, or the skimmer is of poor quality. Often, the thieves will hide a small pinhole camera in a brochure holder, light bar, mirror or car stereo looking speaker on the face of the ATM in order to extract the victim’s pin number. Gas pumps are equally vulnerable to this type of scam.
Another type of gas pump skim is pulled off due to a common set of keys that will open almost any gas pump. Criminals pose as fuel pump technicians and access the terminal with the master keys. Once inside they access the wires that connect the key pad/card reader and piggyback a device inside the pump that reads all the unencrypted card data.
In some cases an ATM is bought off of eBay (do a search) or elsewhere and installed anywhere there is foot traffic. The machine is set up for one purpose; read/copy data. The machine might be powered by car batteries or plugged in the nearest outlet. I bought one off Craigslist for $750 from a guy named Bob at a bar. How you like them apples.
When credit card information is skimmed, hackers can copy the data on blank cards, gift cards, hotel keys, or “white” cards. White cards are effective at self checkouts, or when the thief knows the clerk and is able to “sweetheart” the transaction. A white card can also be pressed with foils to look like a legitimate credit card, as seen in this video.
To help combat ATM Skimming, ADT unveiled the ADT Anti-Skim ATM Security Solution, which helps prevent skimming attempts and detects skimming devices on all major ATM makes and models. ADT’s anti-skim solution is installed inside an ATM near the card reader, making it invisible from the outside.
Consumers must check their statements online weekly or at least their papers ones monthly. Refute unauthorized charges immediately. Federal law allows up to 60 days to dispute a charge. After that you may be paying for an identity thief’s Vegas bender. Whenever entering a PIN always cover the keypad with your other hand.
ROBERT SICILIANO, CEO of IDTheftSecurity.com is fiercely committed to informing, educating, and empowering Americans so they can be protected from violence and crime in the physical and virtual worlds. His "tell it like it is" style is sought after by major media outlets, executives in the C-Suite of leading corporations, meeting planners, and community leaders to get the straight talk they need to stay safe in a world in which physical and virtual crime is commonplace. Siciliano is accessible, real, professional, and ready to weigh in and comment at a moment's notice on breaking news.
- “Flash Attacks” Make Big Money for Debit and Credit Card Scammers
The latest ATM scam is so brilliantly simple, it’s hard to believe that it actually works. Apparently, banks’ fraud detection systems are unable to flag nearly simultaneous transactions from the same account. This leaves bank customers vulnerable to what’s been termed a “flash attack,” in which multiple scanners use a stolen debit card number to
- Protect your Cards from Multiple Kinds of Skimmers
PIN may sometimes stand for pilfered identification number if a hacker gets yours. And it’s easier than ever for thieves to get your PIN from an ATM, coming up with clever ways to beat security technology. The “primitive” way to get your card number is to manually place a phony card reader over an ATM card
- A Viable Solution to Wave of Skimming and Point of Sale Attacks
Officials are reporting a wave of credit and debit card attacks targeting point of sale swapping, skimming of card data, and hacking into payment processors. Reports say the U.S. Secret Service, among others, are in the process of investigating a multistate crime spree. The Oklahoma Bankers Association commented, “It is beyond apparent our bankers are taking
- POS Skimming—Bad News for Banks and Merchants
EFTPOS skimming has become increasingly prevalent over the past few years. EFTPOS skimming—which stands for “electronic funds transfers at the point of sale”—involves either replacing the self-swipe point of sale terminals at cash registers with devices that record credit and debit card data, or remotely hacking a retailer’s POS server. In one such case, Romanian hackers
- Retailers’ Point of Sales Terminals “Slurped”
Electronic funds transfers at the point of sale (or EFTPOS) skimming is a relatively new scam that has become more prevalent over the past few years. This form of skimming involves swapping out the self-swipe point of sale terminals at cash registers, and replacing them with devices that record credit and debit card data. Fast food
Leave a Comment
You must be logged in to post a comment.