Credit and debit card crime is on the rise – one of the top reported scams in 2011 was point-of-sale terminal payment card skimming.
Skimming is a term generally used to describe the illegal copying of credit or debit card data obtained through point-of-sale terminals that have been altered to capture the account information included on a card’s magnetic strip.
In many cases, the altered terminals also capture the personal identification number (PIN) used by the card holder. The data is then used to create counterfeit cards, after which money is fraudulently withdrawn from bank accounts.
The introduction of chip card technology is helping fight the battle against skimming, but chip cards are not fail-safe, as cards still have the magnetic stripe for use at locations or countries that don’t use, or have not yet converted to, chip technology.
Credit card fraudsters can also get a hold of your personal information and your credit card details in a varety of ways.
There are a number of precautions card users can take to protect themselves from becoming a victim of skimming and credit card fraud:
> protect your personal identification numbers (PIN) and bank account details;
> keep an eye on your card when handing it over to a merchant to prevent the surreptitious swiping of the magnetic stripe;
> never use a point-of-sale terminal or an ATM that appears altered or tampered;
> check bank accounts and credit card statements regularly for any unusual or unauthorized transactions;
> understand that when you sign up for online deals, freebies, contests and newsletters, your personal information could be sold or stolen;
> set up a secondary email address just for online interactions;
> ensure your email password is different from your online banking password;
> never give your credit card details unless you are buying something from a trusted merchant
> use a shredder to destroy all documents that contain personal information – don’t just throw them in the recycling;
> when online shopping, don’t save your credit card information in the company database;
> follow the rule of never donating money or making purchases over the phone or at your door;
> report any account irregularities immediately to your bank or credit card company;
> advise police of any confirmed fraudulent activity
To find out more, visit the Investor Education Fund.
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