Card skimming is the act of illegally capturing debit/credit card information during an otherwise legitimate transaction, such as making a purchase at a store or taking out money from an ATM. The goal of card skimming activities is to use the stolen debit/credit card information to commit fraud in the cardholder’s name.
Card skimming occurs in one of two places: at or near point-of-sale payment terminals or at ATMs. In order to capture debit/credit card data, criminals use a small electronic device known as a ‘skimmer’ that is capable of recording the data embedded on the magnetic strips of debit/credit cards as they are swiped in a payment terminal or ATM. The skimmer is placed as either an overlay that is identical or blends in with the legitimate terminal or ATM interface or hidden within the card reader of the terminal or ATM. Skimmers usually record and store payment card data internally, which means that criminals will need to return to the scene of the crime in order to complete their scam. However, more and more card skimmers have been found to be taking advantage of wireless and Bluetooth technology – they can collect the card information from a discreet location whenever they want.
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