The next VDTA/SDTA Convention & Show will be in
New Orleans, LA
February 27 - 29, 2012
at the Ernest Morial Convention Center

Member Benefits

Credit Card Skimming

Beware of the quickest method of fraud!

The device is no larger than a cigarette lighter and fits easily into someone’s pocket or apron. It costs anywhere from $250 to $1,200 to purchase one. It can hold up to 300 different credit card numbers. It’s used to steal credit card information to be used for unauthorized purchases.

Skimmers are just one of many tools used by potential thieves to steal credit card numbers from unsuspecting customers. They are very popular in situations where the customer is not present when the credit card is swiped such as in a restaurant. The staff can easily hide the skimmer in their apron and swipe the card out of plain sight on their way to the terminal. The customer is none the wiser until they see charges appear on their statement that they did not make.

This same type of theft can happen at an ATM or gas pump. A skimmer can be attached to the location where the card is swiped making it look like part of the machine. When a card holder swipes their card through the ATM or gas pump, they have unknowingly supplied the skimmer with their credit card information.

Credit card processors as a result have reprogrammed their credit card terminals with software that now asks for the CVV2 number located on the back of the card. However, newer versions of skimmers have a small keypad to allow the user to enter the 3 or 4 digit card security code which is not present on the magnetic strip. Some ATM skimmers have a pin hole camera to read the user’s PIN number at the same time. So, when the user scans their credit card, the PIN is recorded. Once the information is collected, the information is then downloaded on to a computer and then sold. These numbers are then duplicated as a new credit card for thieves to use or sell to others.

Unfortunately, it’s difficult for a card holder to detect if their card has been skimmed until fraudulent transactions appear on their statement. To protect yourself, when possible, only use your card when you can see it swiped at a register. In restaurants where it’s common practice to take the card and swipe it elsewhere, pay with cash instead. And each month, review your statements to verify they are correct.

This information is brought to you by Elavon (formerly First Horizon Merchant Services). Call Kimberly Layton with any questions or for more information on the credit card processing program at 1-866-638-8614.

Reprinted from Central Vac Professional, February 2009