Credit Card Skimming

Simply put, credit card skimming is the practice of retrieving the information that is encoded on the magnetic strip of a legitimate credit / debt card. Then using the information to make duplicate cards for purchasing high dollar items.

POP QUIZ ----------

Where is the most likely place for skimming to take place?

Your local bar or finer eating establishments. The businesses themselves are not the problem, but a less then exemplary employee out to make a quick buck. The problem arises when, despite all the warnings, you let the credit card out of your site. It is far to easy to run the card once for the bill, then a second time through a reader that stores all your personal data on the cards magnetic strip. Then use a key pad for the CVV code. This ‘double swiping' could happen at your local pizza parlor or at your front door by a delivery service.

For those that don't know, the CVV is a 3 or 4 digit Card Security Code printed on the back of the card. That is all an identity thief would need to manufacture fake credit cards. Put your information on a blank magnetic strip and the CVV code. In an effort to curb these crimes, more and more sites are requiring address, phone number and zip. But after they have your bank information, how hard do you think it would be to get the rest

Many experts are suggesting that you scratch off your CVV code and keep it else where. These same people recommend using a different PIN number for each card. While the notion of having all these numbers to remember.... Just consider the alternative.

Once a card has been stolen or duplicated, the miscreant will usually got a what is known as a "cardable site". This where they can make a small purchase or maybe a $2 donation just to check if the card has been reported yet so as not to alert the banks. Remember now... It is easy to track down what computer is making the transactions by the IP address. After the nominal transaction clears, it is quickly sold some where in the world for an unrestricted shopping spree.

Another method of steeling the information from your card is from standard ATM machines. Just recently ( mid April. 2008 ) RedBox, a DVD-rental vending machine maker, sent out a nation wide warning that some of there machines had been modified to record the magnetic strips information as it was inserted into the machines. They also found that a small spy camera had been used to record the PIN numbers as they were entered onto the keypad.

Identity Theft experts recommend only using well lit / high traffic ATMs. If the machine is out of order, that is all it should say on the screen. Special instruction directing you to another ATM, or anything posted by the card slot are a red flag. Find another ATM and notify the bank.