What is skimming of Credit Cards

A credit card is one of the most widely used financial tools in our daily lives. Credit cards not only offer rewards and benefits, but also tight security to protect your finances. Fraudsters find numerous ways to steal your money through credit cards, so you need to be vigilant. A common method of credit card fraud is skimming, in which your data is stolen by using skimmers. Here's what credit card skimming is and what you can do to avoid it.

What is skimming of credit cards?

Skimming occurs when credit cards are used at POS machines to steal credit card data. In most cases, thieves use a device called a skimmer attached to POS machines to collect vital data such as your card number, expiration date, full name, etc.

When you use a credit card at a merchant to swipe and transfer money, the skimmer device attached to the POS machine collects your data. It is then used for various fraud activities such as identity theft and more. It is always advisable to use your card at trusted stores and merchants to avoid fraud.

Although banks offer numerous levels of credit card security, a minor mistake can land you huge losses. So, you need to be aware of credit card fraud and choose a bank that offers full control over your credit card uses.

IDFC FIRST Bank is among the leading financial organisations offering credit cards with world-class features and security. Along with multiple verification methods, you get a dual-layer chip and pin security. In addition, using the mobile app, you can instantly block and unblock your card with a single tap. You can also set up expense limits for manual security. 

What happens when your data is stolen through credit card skimming?
 

Once the data from your credit card has been stolen, it can be used for several fraud and unauthorised transactions such as those mentioned below.

· The credit card skimmers can commit identity theft to set up a duplicate account with the data collected from your credit card. They can also apply for loans in your name.

· They can use the details for over-the-phone or online purchases.

· The thieves can transfer your details to other parties who may use them to create a counterfeit credit card.

Fraudsters can use your data in numerous ways, including financial fraud and data leaks.

How to spot a credit card skimmer?
 

Credit card skimmer devices can easily be blended with ATM and POS machines and are usually difficult to spot. In most cases, these devices stick out of the card-insertion panel and seem like an additional attachment to the card reader. So, if you find any loose attachments or devices attached to the card reading panel, it may be a skimmer.

What should you do if your credit card is skimmed?
 

Credit card skimming is difficult to detect, and you won’t know unless your bank or card issuer notifies you about fraudulent transactions. Banks and financial institutions use robust fraud detection technology to classify unauthorised transactions. Once you are notified about any fraudulent transaction on your credit card, you can request your bank to block your card.

Skimming fraud is more common than you think and you need to be vigilant when using your card for payments and purchases. Always use a trusted merchant or shop while making online payments at a POS machine and withdrawing cash from the ATMs. Also, keep a regular check on your credit card statement and set spending limits according to your card usage.     

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.