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Skimming Big Business targeting Big Business

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Skimming means more than just cutting fat off steak; it’s also when a thief obtains data from that magnetic strip on the back of your credit card (or debit or ATM card).

2CThe thief records and copies this data with a counterfeit card reader onto a blank card’s strip, and then makes purchases or cash withdrawals with this fraudulent card—in the account holder’s name.

Skimming takes place at ATMs, taxis, gas stations, restaurants, retail stores—any place where an employee will swipe your card to make your purchase. A credit/debit/ATM card reader can be fitted with a skimmer by the thief. Or, the thief can skim your card using a handheld skimming device.

Next time you hand your card to a clerk, watch it very carefully. At one gas station, two attendants skimmed dozens of customers’ cards with a square-shaped device the size of a dime, then sold the stolen information.

There are several ways to skim this cat:

  • An employee skims a card, then sells the stolen data, usually online on illegal “carding sites.”
  • The skimming or scanning device can be tiny, hidden in the hand.
  • Other skimming devices are superimposed on an ATM’s “mouth” to collect information when customers insert their cards. Thieves can then transfer the data via Bluetooth.
  • Sometimes a scanning-overlay is placed on the keyboard to capture PINs.
  • A less sophisticated approach is to record via tiny camera the customer entering the PIN.
  • Thieves with only half a brain know to wear concealing attire when they collect these devices. They do it quickly since they know that banks can catch on quickly.
  • These devices are also placed inside gas station pumps.
  • Some of these crimes are perpetrated by organized groups, and the gas station ones usually come from Europe.

Make It harder for Thieves

Always use the same ATMs so that you might detect a subtle difference one day.

Use indoor ATMs.

Keep your eyes on your card after giving it to an employee, though this isn’t always possible when the employee disappears into an employee-only area.

Cover the PIN pad with your other hand when entering your PIN.

Finally, routinely check your credit card and bank statements for any unauthorized charges.

Robert Siciliano is an Identity Theft Expert to AllClearID. He is the author of 99 Things You Wish You Knew Before Your Identity Was Stolen See him knock’em dead in this identity theft prevention video. Disclosures.

Black Friday Launches Holiday Fraud Horrors

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The Christmas shopping season traditionally kicks off on Black Friday, the day after Thanksgiving. This also begins a time when criminals swarm the shopping malls as well as the Internet, seeking to take advantage of holiday opportunities.

When shopping in stores, keep the following in mind:

Employees: Seasonal employees are more likely to steal, from their employer and from the customers. It has been said that only 10% of employees are honest, 10% of employees will always steal and 80% will steal based on circumstances. So always count your change.

Credit Card Skimming: When a salesperson or waiter takes your credit card, they can run it through a card reader device that will copy the information stored on the magnetic strip. So when you hand over your card, watch closely to see where it is taken and what is done with it. It’s normal for the card to be swiped through a point of sale terminal or keyboard card reader. But if you happen to see your card being swiped through an additional reader that doesn’t coincide with the transaction, your card number may have been stolen.

Debit Card Skimming: Without the associate PIN, a skimmed debit card number is difficult to turn into cash. With the help of a hidden camera or a “shoulder surfer,” though, your PIN could be recorded at an ATM or point of sale terminal. Cover the keypad while you’re entering your PIN.

Pickpockets: Pickpockets slink through society, undetected and undeterred. They are subtle and brazen at the same time. They are like bed bugs, crawling on you and injecting numbing venom that prevents you from detecting their bite until it’s much too late.

Be aware of your surroundings, especially in crowded places. Pickpockets use distractions like bumps, commotions, and aggressive people. Sometimes a person will fall down, drop something, or appear to be ill.

Consider subscribing to McAfee Identity Protection, a service that offers proactive identity surveillance, lost wallet protection, and alerts when suspicious activity is detected on your accounts. For additional tips, please visit www.counteridentitytheft.com.

Robert Siciliano is a McAfee consultant and identity theft expert. See him discuss Black Friday on The Morning Show with Mike and Juliet. (Disclosures)