Find out how to identify credit card skimming and protect yourself from such fraud by taking some simple steps
A recent survey by LocalCircles found that 47% of Indians have experienced financial fraud in the past 3 years, with credit card scams being among the most common. Fraudsters employ various tactics, including credit card skimming, to steal card information.
This type of fraud allows criminals to gain access to your sensitive information, often without your knowledge. They can misuse it in various ways, leading to financial loss, damage to your credit score, and stress.
Once your data is stolen via credit card skimming, the consequences can be severe. It is crucial to understand the risks and act quickly to mitigate the impact of such crimes. Here is what can happen if a scammer gets your card information through skimming:
Identity Theft
Fraudsters can use your card details to open fake accounts in your name. They could also apply for loans without your knowledge, which can damage your credit score. The impact can be long-lasting and harm your financial security.
Unauthorised Transactions
Stolen data lets fraudsters make unauthorised purchases or withdrawals by either using the data online or via physical transaction by using a cloned card. This can lead to unexpected financial losses. The longer it takes you to spot the fraud, the more damage it can cause.
Skimming devices are often attached to ATMs, Point-of-Sale (PoS) machines or gas stations.
When you swipe your card on these tampered machines, the skimmer steals your card details. Here is more information about the locations where you can exercise caution when using your credit card:
ATMs
Fraudsters may tamper with ATMs by placing skimming devices in card slots to steal your card details. Before using an ATM, always check the card slot for anything unusual.
If the slot feels different or if you see an attachment, do not use the ATM and report the issue to the bank right away.
Restaurants or Shops
Employees at retail stores or restaurants may attach skimming devices PoS terminals. When you hand your card to the staff for payment, they could use the skimmer to steal your card information.
To protect yourself, carefully inspect the machine before use. If you notice something suspicious, ask questions or choose a different payment method. You can use contactless payment options to avoid handing over your card.
Fuel Stations
Skimming devices are often hidden on PoS terminals at fuel stations. Before making a payment, check the machine for any signs of tampering. If you find anything unusual, report it to the station manager immediately.
You can take proactive steps to protect yourself from credit card skimming fraud. Here are some simple tips to help prevent it:
Shift to a Chip-based Card
Opting for this type of card offers enhanced security compared to a magnetic strip card. Chip cards generate unique transaction codes, making it harder for fraudsters to duplicate your information. If you still have a magnetic strip card, request a replacement to stay protected.
Use Contactless Payment Options
Another way is opting for contactless payment options such as mobile wallets, UPI (Unified Payments Interface), or tap-to-pay. These methods offer better security compared to handing over your card and swiping it.
Check the Machine Thoroughly
Before using any ATM or PoS terminal, take a moment to inspect it. If the card reader feels loose or looks unusual, avoid using that machine. Using ATMs located inside bank branches can also help reduce the risk of tampering.
Enter the Card Details and PIN Discreetly
Always cover your PIN while entering it on any machine. This prevents hidden cameras or prying eyes from capturing your PIN. This is a simple step that adds a layer of protection.
Check Your Statement Regularly
Regularly review your card statements for any unfamiliar or suspicious transactions. If you spot anything unusual, report it to your credit card company immediately. Quick action can help minimise any potential damage.
Enable Alerts for Transactions
Set up transaction alerts to get notifications about any card activity. You can get opt for email and SMS notifications. This allows you to spot any fraudulent transactions early on.
Credit card skimming is a method that fraudsters use to steal your card details without your knowledge. Here’s how you can protect yourself:
Examine ATMs and PoS terminals for any signs of tampering before swiping your card
Enter your card details and PIN privately to avoid others seeing them
Opt for contactless payment methods whenever possible for added security
Regularly review your credit card statements for any suspicious transactions
If you notice fraudulent charges on your credit card statement, take the following measures:
Contact your credit card issuer to block the card
Update your password and PIN
Check your credit report for any unauthorised accounts
Report the fraud to your local police station
Look for loose or unusually bulky card readers, as these may hide skimming devices. Also, check for extra devices, wires, or anything unusual attached to the machine.
If you fall victim to credit card skimming, immediately contact your bank or card issuer to report the fraud. Their customer service executives will block your card to stop any further misuse and provide you with a replacement card.
Additionally, monitor your account for any unauthorised transactions and consider changing your account passwords for added security.