What are credit card skimmers and how do they work?
Credit card skimmers are devices that steal credit (or debit) card information by reading the magnetic strips found on these cards. Some skimmers use a hidden camera to capture consumer PINs for debit cards.
Once a criminal is able to download the data obtained by their skimming device, they can use it to make purchases or create duplicate cards.
The problem is that not only are skimmers designed to look like real credit card readers, but they’re also extremely easy to install and cheap to get a hold of. WXYZ Detroit’s video shows how it takes just a few seconds to slip a credit card skimmer onto a legitimate card reader inside a store.
And according to Foreman, "you can go on Amazon and get a skimmer for $80,” making them extremely easy to come by.
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Learn moreHow to protect yourself from credit card skimming
Given the uptick in credit card skimming, it's important to be vigilant so you don't end up being a victim. One of the best ways to protect yourself is to examine credit card readers at stores before using them.
Foreman has some advice in this regard. "If you're not sure, grab it and try to move it. If it comes off, then you know it's a skimmer.”
Foreman also warns that if your credit card won't go in all the way, it may be a fraudulent device. In that case, he says, you should notify the store immediately. You should also notify your bank or credit card issuer.
In addition, it's a good idea to cover the keypad when you enter your PIN on a debit card reader, since some of these devices have cameras that can steal a PIN otherwise.
It's also important to monitor your checking account (in the case of a debit card) and credit card accounts regularly. Schedule time on your calendar weekly to review your transactions and make sure they're all legitimate, and be sure to act quickly if you see something that seems off.
You only have 60 days from when you receive a bank statement to report unauthorized charges. If you notify your bank after that point, you may end up having to cover those charges.
Credit cards work a little differently. If your card number is stolen but you still have your physical card, you're generally not liable for any unauthorized charges. But in that case, you'll typically have your credit card canceled, which could be a hassle if it means having to set up recurring charges all over again. So avoiding skimmers is a smart thing to do even with this protection in place.
In that regard, Foreman says the best thing you can do is to use tap-to-pay instead of inserting your card into a machine. Or, better yet, he says, you can pay with cash.
"Cash is always king," said Foreman.
But there can be drawbacks to making purchases in cash. Some credit cards give you purchase protection that cash doesn’t, and using a credit card often means accumulating reward points or cash back on the things you buy.
So you shouldn’t necessarily write off the idea of using credit cards just because skimming activity is on the rise. Rather, be observant and know what to look out for.
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