Fwd: Credit card skimming !!

Credit Card Skimming
SKIMMING is the direct transfer of electronic data from the magnetic strip on a credit card or debit card to a card-reading device. The skimmed data is then transferred from the reading device onto another plastic card that has a magnetic strip on it. The fraudster can then create a card with the same characteristics and use it freely - till identified or caught. Needless to add, skimming is illegal.

Credit card skimming is an international problem accounting for losses of over one-billion dollars a year. This type of credit card scam is common in Europe, Asia and Latin America and is starting to show up more in the United States.

This scam is easy to run - it can happen when you give your credit card to a store employee to make a purchase. That employee may not only swipe your card for payment, but also swipe the card with a small machine they hold in their hand known as a skimmer. This small device will store the information from your card into its system. The skimmer is equipped to hold information on hundreds of credit cards and from this information, the crooks are able to produce counterfeit cards.

There are skimming rings working all over the world and once your information is put into the skimmer, it is then downloaded into a computer, ready to be emailed to anyone worldwide.

A decade ago, this fraud was not as easy to accomplish as it is today, due to the fact skimmers were very large and had to be hidden under

counters. However, with the advance of technology in the past ten years, they have been able to streamline the skimmer, making it small enough to be hand-held and out of sight of the unwary customer making a purchase. These skimmers are easy to buy; in fact, they can be purchased over the internet at around $300. The machine needed to make counterfeit credit cards is a much larger investment - costing $5,000 to $10,000.

Another form of this scam is done by actually pulling information directly from the credit card terminals. A skimmer bug is placed into the terminal and later retrieved with credit card information on it. Only the older terminals can be violated in this way and with the onset of new credit card terminals, this has alleviated much of this bugging.

As soon as the crooks have their needed information on you, they will start their shopping sprees using your credit card number. They purchase all types of merchandise and charge it to your credit card. Over half of credit card fraud is done over the internet with online purchases. With shopping on the internet becoming more and more popular, card fraud on the internet has also increased.

The crooks will also use the internet to verify the card information is valid. They will purchase many low-ticket items through various websites, checking to see if the card is active. Internet processing of card purchases is done by real-time processing and not handled by a person; thus, no chance of them being caught trying to use a stolen card number.

Where can skimming take place?
Skimming generally takes place at petrol stations, restaurants, hotels and such outlets where the swipe terminal is not in your sight.

Warning signs:

• A shop assistant takes your card out of your sight in order to process your transaction.
• You are asked to swipe your card through more than one machine.
• You notice something suspicious (e.g. an attached device) about the card slot on an ATM.
• You notice a strange or unauthorized transaction in your account.

Tips to avoid becoming a victim of skimming:

• Keep your PIN safe. Don't give/tell it to anyone.
• Watch out for people who try to "help" you at an ATM.
• Look at the ATM before using it. If it doesn't look right, don't use it.
• If an ATM has any unusual signage, don't use it.
• If your card is not returned after the transaction or after pressing 'Cancel', contact your card issuing authority immediately.
• Check your bank account statements to ensure that there are no unusual withdrawals.