Credit card fraud is one of the oldest and most widely used of all forms of cybercrime. The amount of stolen money and other losses due to credit card fraud is estimated to be in the billions of dollars annually. With our ever-increasing reliance on technology, it is becoming more difficult to guard against savvy online thieves.
This article will discuss the techniques used by criminals to obtain and divert your credit card details. It will also provide advice for avoiding falling victim to online theft.
What is Credit Card Skimming?
Credit card skimming is a popular and common form of financial fraud. It is used by criminals to obtain the credit card details of unsuspecting victims, such as card numbers and security codes. Skimming is carried out by inserting a device, known as a skimmer, into an ATM or point-of-sale (POS) system.
The skimmer reads, collects and stores the data stored on the card’s magnetic strip, which is typically used to purchase goods and services. The stolen details are then sold to fraudsters, who can use them to purchase items or cash on the internet.
How Thieves Skim Credit Card Details
There are a variety of different methods used by criminals in order to skim credit card information. Some of the most common include:
1. Insert Skimmer: This method involves the physical insertion of a device into the card reader slot of an ATM or POS terminal. The skimmer captures and stores the card data as it is inserted into the machine.
2. Man in the Middle Attack: This type of attack is similar to the insert skimming technique, but instead of a physical device, criminals will use malicious software to capture credit card information. The software is installed on the card reader or terminal and captures the data entered by the user.
3. Email Phishing: This is a technique commonly used by fraudsters to gain access to an individual’s personal and financial information. They will send emails claiming to be from a legitimate source and ask the victim to provide their credit card details.
4. Malware: Criminals often install malicious software, or malware, on an individual’s computer or smartphone. This software can capture payment information when the user is making a purchase or entering their card details into a website or application.
5. Data Breaches: Data breaches involve the theft of confidential information from a company’s databases. This can include credit card details, personal information, passwords and more.
Tips to Avoid Being a Victim
Now that you know the ways in which criminals can skimp your credit card details, it is important to know how to protect yourself. Here are some tips for avoiding falling victim to online theft:
1. Monitor Your Account: Monitor your account activity regularly to ensure your credit card hasn’t been used fraudulently. Look out for unfamiliar transactions and contact your bank if anything looks suspicious.
2. Password Protection: Always use strong and unique passwords for online accounts. Avoid using common words, phrases or personal information, as this can make your account easier to compromise.
3. Verification: Make sure that all websites or applications you use are verified and reputable. This will help to prevent criminals from gaining access to your personal and financial information.
4. Secure Connections: Ensure you only use secure websites and networks when entering your credit card details. The website should have a secure “https” address in the address bar and should also have a padlock icon.
5. Use a Credit Card Instead of a Debit Card: Credit cards tend to have more consumer protection should anything go wrong, so it is better to use a credit card rather than a debit card.
Conclusion
Credit card fraud is becoming increasingly common in an age of digital technology. Unfortunately, criminals have become increasingly sophisticated in the way they obtain and use credit card data. Therefore, it is important to be aware of the methods and techniques used to skim information from cards and how to protect yourself from online theft. By following the advice outlined in this article, you can reduce your risk of becoming a victim of credit card skimming and other cyber crimes.
