According to the U.S. Secret Service, card skimming is one of the fastest-growing financial crimes. Card skimming is a common method now used by thieves to steal identification, credit card or debit card data. According to recent research conducted by Unisys Corporation, nearly 75% of Americans believe the recession has increased their chances of becoming victims of identity theft and having criminal hackers and thieves obtain and use their credit or debit card data.
It is estimated that skimming costs consumers and credit card companies more than $8.5 billion per year. This practice continues to evolve and grow.
Skimming is the process in which a special reader or scanner is used to copy the encoded data from the magnetic strip on a credit card or ATM card. Such readers are most commonly attached to an ATM machine but are also now being found across the country at gas pumps, DVD rental machines, or any other self pay station. Skimming also can occur at your local restaurant with the waiter using a small, portable battery-powered card reader carried on their person. These “mag -readers” are used to capture and steal the information from the magnetic strips on customers’ credit cards.
At the ATM machine, the skimmer often uses a mag-reader in conjunction with a hidden camera nearby so they can record individuals typing their PIN numbers. With this information, they can duplicate the ATM cards and use them in conjunction with the stolen PINs. This type pf crime is highly organized – typically part of a larger criminal operation. Upon successfully reproducing ATM cards that are functional, they will employ a team of runners to empty out the owners’ bank accounts in a number of small transactions in geographically dispersed locations. If the skimmed card is a bank credit card, often the data is transmitted across the country or overseas to make thousands of fraudulent cloned credit cards.
What can consumers do to protect themselves from skimming? Always check credit card statements for uncommon charges. Never allow a credit card to be swiped out of view, beware of “shoulder-surfers” – people who loiter around ATMs trying to read the PIN as you enter it. “Skimming” is also common, where thieves corrupt an ATM’s magnetic-strip or install a fake card reader over the normal device on an ATM. Try shaking the area where your card goes in. If it has a skimmer, it will be obvious because they’re designed to be installed and uninstalled quickly. If you suspect there may be a skimmer on the ATM, let the bank or gas station know.
Check credit and banking statements carefully. Scrutinize every charge and refute any unauthorized charges within 30-60 days. Call bank/credit card companies immediately if any fraudulent activity is seen. As a preventative measure, invest in an identity theft protection program for a monthly fee or consider a credit freeze to help prevent identify theft.
How can businesses protect themselves from skimmed credit cards? UV counterfeit detectors can quickly verify the authenticity of a credit card and will detect and deter most cloned cards. All major credit cards include hidden security features that cannot be seen with the naked eye that were added for the protection of US businesses. These features become visible under a UV detector. For example a MasterCard will display glowing letters “M C” under a UV light while a Visa will show a “V” near the logo and an American Express will display a fluorescing AMEX under the detector.
Cloned credit cards are not made from the proper security stock and therefore will not include these security features. The UV detectors can also assist in detecting a stolen credit card since almost all state ID cards now include hidden UV security features. A UV detector can quickly be used to verify both an ID and a credit card. Many major retailers have had tremendous success using UV technology – for example, one major appliance retailer made a small investment of two UV detectors per outlet store; in the first four months over $35,000 in fraudulent credit card purchases were stopped. Simple steps utilizing UV technology can save your business thousands in fraudulent transactions, help protect your customers, and also make the point to potential criminals that your stores are no longer an easy target.
For more information and examples of how a UV detector can protect your business from skimmed credit cards (as well as counterfeit money, traveler checks, and fake IDs) you can visit the Fraud Fighter web site and view check the interactive demo link.
