How To Recognize Credit Card Skimming and Prevent Credit Card Fraud

By Andrew Alpin, 26 May 2017

There are thousands of people worldwide falling victims to credit card fraud and hacking by criminals well versed with technology. Such masterminds keep devising new and devious ways to acquire and scan sensitive information from credit cards and it becomes difficult for lay people to recognize the risks and dangers of such activity. Today tech savvy criminal also use a special skimming device to steal money and you could be falling prey to such a scheme at any location be it a restaurant, mall or store without you knowing it.

1 How to protect yourself from credit card fraud

Along with our own information here are guidelines issued by Ingenico which is a credit terminal manufacturer has issued guidelines on recognizing a skimmer present in standard terminals (ingenico iSC250). In this way one can recognize some tell tale signs that prove the terminal is being used as a skimmer to collect and commit credit card fraud.

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2 What is a skimmer?

Skimmers are malicious card readers that can easily scan all of the information off your credit card’s magnetic strip. They are attached to true payment terminals or could also be incorporated as fraudulent terminals which harvest data from any card that is swiped on the device. The thief then returns to collect the data from the compromised machine. Armed with the information he can then created cloned cards and break into bank accounts to steal money. The scariest fact is that skimmers allow an ATM or credit card reader device to function normally to ward off any suspicion.

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3 Skimming terminals are significantly larger than normal

A skimmer is always longer and wider than a terminal itself. A skimming terminal is always larger than a safe and true device, this is one of the main features to recognize and distinguish a fraudulent device from a true terminal.

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4 No button highlights

A skimmer that may have been inserted too quickly will block the button that you see highlighting the terminal.

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5 The Green LED light on the terminal is blocked

If you have noticed closely every terminal has a green LED which lights when a card is being scanned. A Skimmer blocks this from functioning.

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6 Frequent operation errors

Skimmers tend to obstruct the magnetic strip when data is being scanned which results in operation errors and even slows down the terminal. Pay attention when you card is being scanned if you feel a terminal is operating slower than it should or if there are too many operation errors.

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7 No stylus is attached

All payment terminal devices have an attached stylus for clients to enter their signature after a card has been scanned. A skimmer inside any iSC250 does not allow the stylus to be attached.

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8 This is how you protect your money from credit card fraud

The best way to protect your money from credit card fraud is to have a separate debit card that contains only that much amount of cash required for a particular purchase.

Make sure you are connected to sms banking to get notifications so that you can act upon unexpected debits

Set a limit cash withdrawal amount so that criminals can’t withdraw all your money at once

Block your card immediately if you have lost it or if you suspect someone has learned of its details

Get acquainted with card insurance and its terms with your bank. There are some credit card organizations have special programs to protect clients from credit card fraud and reimbursement. Never allow a store employee to take your card away from you. The same applies in a restaurant as a waiter taking your card runs the risk of it being skimmed discreetly. Demand all operations to be done in your presence. Make sure you read a charge receipt carefully after you have paid with a card, the area which mentions the amount should never be blank.

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