Thursday, July 16, 2015
Can you spot a skimmer?
If you withdraw money from an ATM or pay at the pump for gas, you’re at risk of a common type of fraud known as skimming.
But you don’t have to be a victim.
Todd Link, senior vice president, Risk Management & Remote Delivery at Dupaco Community Credit Union, explains how this type of card fraud works and what you can do to avoid it.
During the legitimate transaction, a card passes through a second card reader that illegally captures the card number. Criminals install a camera nearby to simultaneously record the cardholder’s PIN as it’s entered.
“If you have concerns about the merchant or the ATM, do not pay or use a card there,” Link says. “Trust your instincts, and always report strange events or observed behavior.”
“Members need to remember that if they report fraud in a timely manner, they are not held accountable for theft by either MasterCard or VISA,” Link says. “The important lesson is to always watch your monthly statements and look for charges you do not recognize.”
The new EMV (short for Europay, MasterCard and Visa) cards will significantly reduce the likelihood of a card-skimming device being successful in stealing funds with a counterfeit card, Link says. Later generations of EMV cards will improve online security as well, he says.
“Card skimming will remain popular until EMV cards are the dominant card in members’ purse or wallet,” Link says.
By Emily Kittle