Think about this instance
On his way to work, Jeremy suddenly realised he needed to buy flowers for his coworker Janice, who was having a birthday that day. Jeremy had run out of money and stopped up at the nearest ATM location. Jeremy hurriedly left after going inside to withdraw $100. After two days Jeremy was completing an online transaction and noted a withdrawal of $2,000 the same day that he distinctly remembered to have withdrawn a simple $100. Alarmed, he alerted the bank's management. Investigation revealed that his ATM card had been copied, and whoever had done so had taken money out of his account.
This is but one instance of ATM machine fraud, or ATM skimming. Even a little ignorance on your part could result in significant losses while using an ATM or credit card.
What is skimming?
Skimming is the practise of creating a duplicate card without your knowing by electronically copying the original data from your card's magnetic strip. Most cases of counterfeit fraud include skimming.
varieties of skimming
Here are the two most prevalent techniques of how fraudsters can replicate ATM and credit cards.
Card skimming:
A scanning device (skimmer)is employed here that copies the information stored in the magnetic strip of your ATM card when u enter it in an ATM machine. The skimmer captures your card's information onto the device as you complete your purchase, and an overhead small camera records your PIN. The fraudsters can either remove the skimmer and camera from the ATM and then copy the skimmer data into a computer, or they can access the skimmer and camera using the laptop's wireless connection while nearby an ATM machine. Now, they copy your magnetic strip using a tool called an MSR (Magnetic Stripe Recorder), and they use your PIN number to make big withdrawals from your account.
Card entrapment:
As soon as you insert your card, a mechanism within the ATM machine captures it. Well meaning folks around you will request you to make a couple of attempts to execute transactions to observe and make a note of your PIN number. And when you give up, become frustrated, and leave the ATM centre to notify the bank of the incident, thieves would remove the trapping device, steal your card from it, and since they already know the PIN, they would have completed sizable transactions in no time.
After learning a little bit about ATM skimming, it's time to learn about point-of-sale (POS) skimming.
Point of Sale (POS) Skimming:
In contrast to ATM skimming, which only occurs at ATMs, point of sale scams/skimming can occur at even the most unassuming and innocent-looking establishments, such as bars, restaurants, supermarkets, or gas stations. The unscrupulous employee only needs to use a small, handheld electronic gadget to skim your card when you present it to pay before returning it to you. This device records all of your card's information, and shoulder surfing occurs when a salesperson watches you enter your pin number and mentally records it.
The dishonest employee can make a duplicate card, withdraw money from an ATM, or embark on a shopping binge once he has your card information and PIN number.
Safety advice to guard against card skimming scams:
The following actions can be taken to safeguard your ATM and credit cards:
Keep your ATM and credit cards secure at all times.
Keep an eye on these cards at all times.
The card is swiped by a store employee using a different machine than the one you used. You should inquire about this action.
Avoid using an ATM's card slot if you notice something odd about it (such as an attached device), and report it to the appropriate authorities.
Never give strangers the PINs to your credit card or ATM card.
When obtaining cash from an ATM, pay attention to your surroundings. Do not crumple and throw away the transaction papers or credit card memos: study them, make a mental note of the facts and then, either tear them or shred them to destroy them.
To be sure that no transactions are taking place behind your back, periodically check the balances of your accounts online or by asking your bank or credit agency to send you statements.
Use caution to cover the keypad while entering any personal identification numbers (PINs) so that your hand movements are not very obvious and you enter your passwords covertly.
Now that you are aware of POS and ATM skimming, we hope that you will use greater caution the next time you use an ATM or make a purchase using your card.
On his way to work, Jeremy suddenly realised he needed to buy flowers for his coworker Janice, who was having a birthday that day. Jeremy had run out of money and stopped up at the nearest ATM location. Jeremy hurriedly left after going inside to withdraw $100. After two days Jeremy was completing an online transaction and noted a withdrawal of $2,000 the same day that he distinctly remembered to have withdrawn a simple $100. Alarmed, he alerted the bank's management. Investigation revealed that his ATM card had been copied, and whoever had done so had taken money out of his account.
This is but one instance of ATM machine fraud, or ATM skimming. Even a little ignorance on your part could result in significant losses while using an ATM or credit card.
What is skimming?
Skimming is the practise of creating a duplicate card without your knowing by electronically copying the original data from your card's magnetic strip. Most cases of counterfeit fraud include skimming.
varieties of skimming
Here are the two most prevalent techniques of how fraudsters can replicate ATM and credit cards.
Card skimming:
A scanning device (skimmer)is employed here that copies the information stored in the magnetic strip of your ATM card when u enter it in an ATM machine. The skimmer captures your card's information onto the device as you complete your purchase, and an overhead small camera records your PIN. The fraudsters can either remove the skimmer and camera from the ATM and then copy the skimmer data into a computer, or they can access the skimmer and camera using the laptop's wireless connection while nearby an ATM machine. Now, they copy your magnetic strip using a tool called an MSR (Magnetic Stripe Recorder), and they use your PIN number to make big withdrawals from your account.
Card entrapment:
As soon as you insert your card, a mechanism within the ATM machine captures it. Well meaning folks around you will request you to make a couple of attempts to execute transactions to observe and make a note of your PIN number. And when you give up, become frustrated, and leave the ATM centre to notify the bank of the incident, thieves would remove the trapping device, steal your card from it, and since they already know the PIN, they would have completed sizable transactions in no time.
After learning a little bit about ATM skimming, it's time to learn about point-of-sale (POS) skimming.
Point of Sale (POS) Skimming:
In contrast to ATM skimming, which only occurs at ATMs, point of sale scams/skimming can occur at even the most unassuming and innocent-looking establishments, such as bars, restaurants, supermarkets, or gas stations. The unscrupulous employee only needs to use a small, handheld electronic gadget to skim your card when you present it to pay before returning it to you. This device records all of your card's information, and shoulder surfing occurs when a salesperson watches you enter your pin number and mentally records it.
The dishonest employee can make a duplicate card, withdraw money from an ATM, or embark on a shopping binge once he has your card information and PIN number.
Safety advice to guard against card skimming scams:
The following actions can be taken to safeguard your ATM and credit cards:
Keep your ATM and credit cards secure at all times.
Keep an eye on these cards at all times.
The card is swiped by a store employee using a different machine than the one you used. You should inquire about this action.
Avoid using an ATM's card slot if you notice something odd about it (such as an attached device), and report it to the appropriate authorities.
Never give strangers the PINs to your credit card or ATM card.
When obtaining cash from an ATM, pay attention to your surroundings. Do not crumple and throw away the transaction papers or credit card memos: study them, make a mental note of the facts and then, either tear them or shred them to destroy them.
To be sure that no transactions are taking place behind your back, periodically check the balances of your accounts online or by asking your bank or credit agency to send you statements.
Use caution to cover the keypad while entering any personal identification numbers (PINs) so that your hand movements are not very obvious and you enter your passwords covertly.
Now that you are aware of POS and ATM skimming, we hope that you will use greater caution the next time you use an ATM or make a purchase using your card.