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How to Avoid Identity Theft at Retailers

Identity Theft

We all love to use our credit cards at our favorite retailers, but there may be a chance that your next transaction could be compromised by an identity thief. Before you head out the door to go shopping, read this article to learn about some of the ways you can protect yourself at the register.

• The next time you grab a bite to eat, choose to pay for your meal at the register instead of giving your credit card to the waiter. There have been many cases where waiters took credit cards and stole credit card information using small devices called skimmers. You can reduce the risk of this from happening simply by paying for your meal for yourself at the front register.
• When you give your card to a retailer, get it back in a reasonable amount of time. If the employee has it longer than you deem necessary, bring it to the manager’s attention and get your card back ASAP.
• When you have your card in your hand while in line at the register, keep the numbers hidden from other individuals. It is quite common for identity thieves to snap pictures of credit cards using a cell phone; and this act can be completed quickly and go unnoticed by the consumer.
• If a store does not have security cameras at the registers, move on to a different retailer. Although PCI data security standards require retailers to have security cameras at areas where credit card transactions take place, many do not, thereby leaving the retailer vulnerable to credit card theft, especially by employees.
• Avoid leaving a tip on your credit card. Service employees may use this opportunity to add an additional tip, and it often goes unnoticed by the consumer. Instead of leaving a tip on a credit card, opt to instead leave a cash tip.
• If you use an ATM or card reader, check for signs of tampering. In particular, look at the card reader closely and do not use it if you see anything out of the ordinary, such as tape holding it on, as this could indicate the presence of a skimming device.

Michaels Stores Customers Get Scammed Over Skimming

Identity Theft News

The latest credit card scam has hit the media, and it involves the country’s crafters. Customers of Michaels Stores have fallen victim to one of today’s most prevalent credit card crimes: skimming.

What is Skimming?

Skimming is the process of placing a fake credit card reader over a legitimate one. It works like this: a credit card thief places the fraudulent device over a legitimate one, such as those found at retailers nationwide, and sits back while customer after customer swipes their card into the device. After a day or two, the thief then removes the skimming device and – voila – has hundreds, maybe even thousands, of credit card numbers.

The latest skimming fraud took place in Michaels Stores across the country, including two in Utah. The Irving, Texas-based company confirmed that their credit/debit card readers in several stores have been compromised by skimming devices. Although Michaels Stores claims that less than 90 pin pads were affected, the store has removed all devices – there’s more than 7,000 – from their stores due to what they call an “abundance of caution.”

How They do It

Many criminals have managed to carry off this scam by either distracting cashiers or posing as repairmen. Many times, thieves simply replace the legitimate card readers with processing machines embedded with skimmers.

Although avoiding this type of scam is close to impossible, particularly if the thief actually replaces the real card reader with a fraudulent one, many times the thieves place a small skimming device over the legitimate one, making identifying it a bit easier.

The best thing you can do to avoid falling victim to a skimming scam is to never use a card reader at a retailer or location at which you are not familiar; to not use an ATM machine at a location you are not familiar; and to never use a card reader that looks suspect.

Finally, it always pays to look closely at your credit card statement each month and your bank account each month if you use a debit card. Immediately reporting fraudulent activity is the best way to avoid a considerable amount of damage to your bank accounts or credit score.

How to Protect yourself from Credit Card Skimming

Identity Theft

We all have to be extra diligent when it comes to credit card thieves and hackers. After all, we don’t want to become the next victim of identity theft.

In particular, credit card thieves are targeting consumers by “skimming” their information when they pay at the pump or hit the ATM.

What is skimming?

Skimming is accomplished when a credit card thief puts a special device over a credit card slot. These skimming devices, which fit inconspicuously over a credit card reader, are designed to capture your credit card numbers when you swipe your card.  In other words, a skimmer allows the credit card thief to capture your credit card numbers easily and quickly, and you are left none the wiser.

Where does skimming take place?

Skimming can take place on any credit card reader that isn’t controlled by the retailer. In other words, if a thief is capable of placing a skimmer onto a credit card reader, they can steal your credit card information. Some of the common places thieves place credit card skimmers are on ATMs and gas station pumps.

How can I protect myself?

The best way to protect yourself against skimming is to be aware of the look of the machine. If the card reader looks different from other nearby card readers, or if you notice anything resembling a loose card slot or glue residue on the machine, steer clear of it and alert the retailer.

You can also better protect yourself from the loss stemming from a skimming incident by using your debit card as a credit card. When you use your debit card as a credit card, you are likely protected from theft, and federal law prevents the credit card company from charging you more than $50 after you report a credit card theft incident.

You can also protect others from skimming by reporting any incident to the local police. If your credit card information was stolen at your local gas station, for example, it is best to file a police report so they can take the appropriate measures to apprehend the individual or individuals in question so other consumers won’t have to deal with the effects of credit card theft.

Credit Cards may soon get a Face Lift

News

Credit cards, for the better part, have looked the same way since they made their introduction decades ago. However, those 1.8 billion credit card debit cards sitting in consumers’ wallets across the country may soon become decidedly more digital.

The New York Times recently reported that the credit card industry may soon change its way from the magnetic strips to imbedded chops and batteries, among other things. If you think about it, this change may be long overdue. In fact, it may be time to allow consumers to become better protected against credit card fraud and to better take advantage of the many benefits of today’s credit cards.

Digitally Enhanced Cards Emerge

Starting soon, it appears that Citibank will take the lead with the newer, digitally enhanced credit cards. They will begin testing a credit card that will allow consumers to decide whether they want to pay for their purchase with their rewards points or their credit card, and will do so by simply pressing buttons on the card that will change the data received by the card’s magnetic strip.

Other creditors are following Citibank’s lead, and are designing and testing cards that can act as both a debit card and a credit card. Yet other creditors will be offering credit cards that reduce fraud associated with credit card “skimming.”

Some credit cards will also be able to hold separate accounts on one credit card. For example, you may be able to choose between a personal purchase on your personal account and a business purchase on your business account simply by selecting the appropriate buttons on the credit card.

Many of the technologies being introduced will be widely used by mid-2011. For many countries, this technology has already been introduced. In Europe, for example, consumers use a chip and PIN instead of a magnetic strip. Why the United States is hesitant to move from magnetic strips is not quite clear.

In addition, Visa, MasterCard and Apply are developing new technologies that will allow consumers to use their cell phones to pay for credit card purchases.

Fighting Credit Card Fraud: What you need to Know

Identity Theft

A sobering fact in today’s technology-driven society is that fraud – particularly credit card fraud – is an increasingly serious problem that many of us will fall victim to at one point or another.

From stealing your credit numbers to your identity, credit card thieves are craftier than ever, which can cost you big.

The following are the most frequent types of credit card fraud, and what you can do to prevent it:

Skimming –

• What is it – Skimming is a fairly new type of credit card fraud that happens when you hand your credit card over to make a purchase. The thief takes your credit card and, in a matter of seconds, steals your credit card numbers using a small, handheld device called a “skimmer.”
• What you can do – Pay close attention to anyone that takes your card for a purchase, particularly those individuals that must walk away in order to complete your transaction.

Phishing –

• What it is – Phishing is credit card fraud that happens via email. Phishing are usually bulk emails that are sent to consumers. These emails, which usually disguise themselves as the individual’s bank or credit card company, ask consumers to provide their personal information. They may appear to be legitimate, even possessing the company’s logo or replicating the company’s web site.
• What you can do – Never, ever respond to an unsolicited email requesting your personal information. Banks and credit card companies will never ask for your personal information via an email message. If in doubt, contact your credit card company or bank directly to inquire about the validity of the email. In addition, make sure you type your bank’s address so that you aren’t re-routed to a fake website who can gain access to your credit card number or other personal information.

It is important to understand that, although credit card thieves are finding new ways to steal consumers’ identities every day, you can protect yourself by never responding to emails, by never providing your personal credit card information to anyone over the phone unless you have initiated the call, and by always paying close attention whenever you pass off your credit card to anyone.