Protect Your Credit Card From Skimmers
72
Skimming Devices
Skimming Happens At ATMs
A Lesson on Skimming
Somebody stole my credit card number. Not my credit card, just the number. Not a fun mix of emotions when I got the word: violated, shocked, and just really pissed off.
Lucky for me, my credit card company has an early fraud detection system. A prerecorded message was left on my home answering machine, alerting me to call the credit card company.
I spoke to the credit card rep, who ran down a short list of charges and waited for my acknowledgement of whether these were my transactions. I can't even tell you what was purchased, or the stores where the purchases were made, because I never heard of any of them. I only remember hearing the dollar amount for each transaction: $329, $546, $232...it was right about here when my eyes glazed over and I mentally checked out.
I came to when I heard that I wouldn't be held responsible for the fraudulent charges. Whew!
Sounds like whoever used my credit card number had a really great time charging who-knows-what from all over the world.
The red flag apparently went up on July 5. Where was I when I used my card? Who could have done this? Most likely, I will never know.
I still don't know the extent of the damage. In about two weeks, I'll get the complete statement of all transactions. I'm supposed to identify the fraudulent charges, fill out some claim paperwork, and return it to the credit card company.
Next week, a new card with a new number will arrive. The question is, will it be safe? For how long?
I am still in shock that this could happen. After all, I am so careful when it comes to protecting my identity and my credit cards. I take all the right precautions:
- I review all transactions as soon as I receive the statements.
- I always destroy, shred, burn, all paper statements containing account numbers.
- I make sure any online purchases are done with reputable companies on secured sites.
- I have firewalls on my computer.
- I never give any personal info to someone who calls me.
The credit card rep said there are literally thousands of ways crooks get a hold of credit card numbers. One of the most common ways is through an operation known as "skimming".
Skimming occurs when you use your credit card to make a legitimate purchase for yourself. It could happen in a store or a restaurant. A dishonest clerk who handles your transaction actually slides your credit card twice. Once for the real transaction, and the other through a second device in order to collect the data from the magnetic strip. Then the crooked clerk sells the information to a third party. After that, well, you can only imagine what happens.
According to bankrate.com, losses of approximately $1 billion a year are attributed to credit card skimming.
There Should Be a Law!
Well, there is. Not that laws really work to put fear in the heart and mind of the unscrupulous. Click here for a list of state by state laws and legislation published by the National Conference of State Legislatures.
Additional Resources
Protect Yourself from Credit Card Fraud
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This can be a real pain in the neck - and worse with debit cards, as your bank account is frozen for a few days while the bank sorts it out.
Thanks, Rob - yes, I agree. There are far too many crooks, and far too many easy ways that give the crooks the edge. Thanks for your comment!
Unfortunately, these are the times we live in. I read an article that stated 1 in 7 people have been victims of ID theft. We cannot be too careful. My wife and I carry 1 credit account and 1 gas account. All other transactions are debit where the damage is usually not as great. Thanks for a real-life account of an all-too-common reality.
I like the idea of a separate bank account just for online purchases, ruthie and dabblingmum - I think I'm going to look into doing that. Good tip!
Thank you for your comments!
Ruthie17. That's a great idea for people who don't want to use credit cards and are leery of using their personal bank cards for online purchases or even in person purchases. We have a seperate bank account for "spending" money but I never thought of how it helps protects us in the long run until you mentioned it.
So sorry this happened to you. You're so lucky that Visa stood behind you with a watchful eye.
This has happened twice to me. The first time we got a call from American Express wanting us to varify if we were purchasing airline tickets at the moment. I said no and it turned out it was a clerk from a department store in town who had written the information down and was using it.
The second time was over the Internet thru a breach of security at PayPal. Purchases were made at 2 places and the idiot used it to extend his warrenty on his computer. He was caught, don't know what they did to him, he was half a world away. But this did make us set up an account at the bank just for Internet purchases. We put just so much a month, at random dates, into the account for what we need to pay for. So far, no problems.
About five years ago my mom had her bank card number (which she used like a credit card) stolen from a store employee--but not the cashier. Someone in the store watched her make the transaction via a store mirror, jotted down her card info and then commenced to buy something online. It was caught that day because she had a very routine pattern of spending and her small bank knew her like a book. But wow, scarey!
Wow - JamaGenee...this is really good advice. I usually "hide" my card while waiting in line too - however, the thought never dawned on me that someone would use a camera phone to take a pic if given the chance!
KEEP YOUR HAND OVER THE FRONT OF YOUR CARD WHENEVER YOU TAKE IT OUT!
Apologies for the caps, but I used to pull out my debit card and hold it by the corner a foot or so in front of me until time to slide it through the scanner or hand it to the clerk.
One day at the grocery store, whoever was in line behind me simply used their camera phone to photograph the card. The number AND my name.
According to VISA, this is all the information they needed to make a duplicate card, using (stolen) card blanks and a devise to imprint the info. Then they went on a spending spree. What alerted VISA was *two* gas fill-ups a few hours apart at stations here in town I *never* go to, and the fact that I never, ever fill up more than once a week unless I'm traveling. Which obviously I wasn't. They also had lunch at a drive-thru, then dinner (for 4!) at a very nice Chinese restaurant, neither a place I EVER use my card. This was apparently "practice" for a grand shopping spree at Wal-Mart...electronic equipment...but the card was denied. Surprise!
VISA had tried to call, but I didn't check messages that night. My first clue was seeing the charges when I looked at my account online the next day. Called the bank first...got a total bozo who kept insisting I must've left my card somewhere even tho I kept saying I had it in my hand as we spoke, and it hadn't been out of my wallet for days other than the grocery store. It was VISA that finally clued me in to the use of camera phones to steal card info.
I used to dislike the idea of anybody keeping tabs on my spending habits, but now *I LOVE IT* that VISA does!
Yes, there are other ways to steal card info, but this one I and my friends weren't aware of. We'd naively assumed a thief had to have the "real" card to make "in person" purchases with it. Not so!
(Yes, all the charges were reversed as soon as I spoke to VISA and a new card was issued, but I did have to fill out a form they sent later.)
I completely agree, Rochelle - one or two cards are best - and regular scrutiny lets you know things are going ok. I am also glad that credit card companies are so vigilant. Like I mentioned earlier, I wouldn't have known about these fraudulent charges for another couple of weeks if it wasn't for the early detection.
BTW - I got my new card today (a day earlier than expected)
A stressor , for sure.
I have had my card company call and ask for confirmation when I spend a large amount-- especially in an unusual area. I DO appreciate that-- but I also have an internet link to my credit and debit accounts. I check them regularly, but not every day.
The card companies do a pretty good job (they don't want losses) and none of us want paranoia-- but it is good to give it a once over on a regular basis. It is easier if you only have one card-- maybe two at the most.
Thanks, bonnie! I'm glad this was of help...you never know when something like this will happen! Be careful!
Sorry for what had happened concerning your credit card but thanks for sharing this experience, those who will read this inlcluding me, will now be more careful making transactions using our credits cards.
Thanks, Marisue...a number of years ago I was burglarized. Feels the same way. Any intrusion into your privacy is indeed a very personal violation. But, this too shall pass!
I bet you felt so violated...it just makes me sick there are people out there to take our hard earned money and identity!
You're right to be skeptical, Eric. Anyone who calls me gets the third degree, and not much else! In this case, I called the customer service number on my account. It's sad that we must be so on-alert all of the time!
This has happened to me only once - the card company called.
I thought I was being scammed, and gave the caller a bit of hard time getting her to prove to MY satisfaction that the call was genuine :-)
Thanks, John and Marisue. It is scary that even when you take precautions, this stuff happens. It's a big racket! Be very watchful!
We all live in a trust zone that is pretty fragile. Scarey!! Thanks for opening our eyes! I wish you well -- and all of us to be careful.
It is really thoughtful for you to share your experience. Most of us live under the "it won't happen to me" dream. But as you well know and have now shared with us, it can and does happen to folks everyday. And even those who are extremely careful with their information.
Again, thanks for sharing your story. Hopefully it will be a serve as a warning to all of us to be more careful.
Thanks, Debbie - if it wasn't for the early detection that my credit card company uses, it would probably be another couple of weeks for me to get the statement before I knew anything fraudulent was going on!
So sorry for your situation. I get very angry when the bad guy causes the rest of us to have to change our lives.
I am pleased when my credit card company calls me to verify a purchase. So far it has always been my purchases reported but I know that any day that could change.
Matthew Lloyd 4 months ago
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http://debteliminationstrategy.blogspot.com/p/debt