One of the more popular methods of accessing consumer account information is ‘card skimming’. South Africa, as well as the United Kingdom, Ireland, the Netherlands and the United States have experienced an intensification of this crime and it has become a major challenge to overcome.

The process of card skimming requires that a device be input into the payment machine or ATM so that when a credit card is swiped it will collect the credit card number and security code. The difficulty around this type of theft is that the card skimming devices can be made from computer spare parts, parts purchased on the internet or even purchased directly on the internet.

Inserting the card skimmer into a machine can be done on a few levels. The first would require someone with a key access to open the machine. This is severely restricted for ATM machines but is easily available for other payment machine types, such as those found in gas stations. For ATM’s, a large hole has to be cut out and the device inserted, which is then covered up with a normal looking decal. The card skimming device can hold as much as 300 different accounts and is then removed by the perpetrators. The attack method that is used typically involves installation of the card skimmers for a preset short time and then, after removal and collection of the credit card data, they move on to a totally different area to keep from being detected.

NCR, one of the world’s largest suppliers of ATM machines, has made attempts at diffusing the ability of card skimmers through the addition of anti-skimmer technology. In the past, the anti-skimming technology was placed on the outside of an ATM machine and achieved a high level of success. However, those that are intent on gaining information have increased their sophistication and have now instituted adding the card skimmers to the inside of the machines themselves.

Once the credit card information has been accessed and retrieved, any card with a magstrip, even a hotel room card, can then be recoded and used in the same manner as the originating credit card. They will use the credit card for a specified amount of time and then replace and recode with the next available number.

Sharon Knowles, CEO of Da Vinci Forensics says:

“Diligence is the key word when it relates to catching and eliminating fraud. Da Vinci Forensics retains the highest standards in monitoring for potential misrepresentation, as well as consistent communication for the methods that are used by perpetrators. The addition of uniform services are supplied for all avenues to reduce and eliminate access to valuable consumer information, with technologies that will protect data and company reputation.”

Companies are continuing to partner with professional organisations that specialise in the elimination of any security breach and stay ‘on top’ of each new method that perpetrators and hackers deploy. As more of our global data is held in concentric locations and people make the transition to a cash-less society, there will be a need for elevated methods to protect all information.

Steps to Take If You Suspect Card Skimming

1. Monitor Your Accounts Regularly

First and foremost, regularly review your bank and credit card statements or use your bank’s mobile app to keep an eye out for any unfamiliar charges. Early detection is crucial.

2. Report Suspicious Activity Immediately

The moment you spot unusual transactions, contact your bank or card issuer right away. It’s important to alert them to the possibility of fraud. This tip also applies to EBT account users who should reach out to their respective state’s benefits agency.

3. Dispute Unauthorised Transactions

Once you’ve reported the issue, dispute any unauthorised transactions. Many financial institutions offer zero-liability policies, meaning you’re typically not on the hook for fraudulent charges if reported quickly.

4. Request a New Card

Ask your bank or card issuer to cancel your existing card and issue a new one. This prevents further unauthorized use of your compromised card information.

5. Update Automatic Payments

If you use your card for any autopay services, ensure you update these accounts with your new card information. Doing so helps avoid missed payments and any resulting fees.

6. Check for Refund Options

In some instances, you might be eligible for a refund of stolen funds, including food and cash aid benefits. Be sure to inquire about your options with the respective authorities.

Stay Vigilant

Taking these steps swiftly can minimise damage and protect your finances. Remaining vigilant about monitoring your accounts can help ensure that any future unauthorised activities are spotted and addressed promptly.

How Credit Monitoring Helps Guard Against Identity Fraud

Credit monitoring is an essential tool for detecting and preventing identity fraud, serving as an early warning system against unauthorized activities. While card skimmers pose a threat, they usually don’t gather enough data for a full-scale identity theft. However, credit monitoring can provide an additional layer of protection by keeping you informed about unexpected changes or inquiries.

Key Features of Credit Monitoring:

• Real-Time Alerts: Credit monitoring services send immediate notifications if there’s a significant change in your credit report, such as a new inquiry or account opening. These alerts allow you to respond quickly to any suspicious activity.
• Credit Score Tracking: Regular updates on your credit score can signal potential fraud if you notice unexplained changes.
• Dispute Assistance: If you spot anomalies or errors in your credit report, you’re entitled to dispute them with the credit bureaus. Monitoring services often provide guidance to help streamline this process.

These features empower you to take swift action if someone tries to misuse your identity, helping you shut down fraudulent accounts before they escalate. Regularly monitoring your credit is a proactive step in safeguarding your financial reputation.