Credit Card Skimmer Scams

A few months back I was the victim of credit card fraud. Luckily the credit card issuer was hip to the scam, and I avoided any financial loss or hardship. But the bank did deactivate my credit card, and it wasn’t until my credit card was denied a few times that I made a call to see what the problem was.

It turns out that someone had “skimmed” my credit card information and with that information, they were able to create a new credit card and use it with any merchant who accepted credit cards as a form of payment.

Here is how the scam went down and how you can avoid becoming a victim to such credit card scams in the future:

At some point in the last few months I used my credit card to pay a merchant. The employee or merchant swiped my credit card in their payment terminal, and then swiped my card again in a special machine called a “credit card skimmer”. The skimming device essentially sucked up all the important information from my credit card, including the card number, expiration date, CVV number, my name, and my billing zip code.

The scammer was then able to create a new credit card with all my information that could be used with any merchant that accepted credit. Once the credit card was created, the scammer used my card at a gas station to make sure it worked. After using it to pump a few dollars worth of gas, the scammer moved on to a bigger purchase. The scammer made their way to a Home Depot and tried to purchase about $500 worth of merchandise. At that point the credit card was declined and the scammer gave up.

Thankfully the bank caught on quick, and was able to cancel the credit card before the large purchase was able to go through. The gas was purchased with my credit card, but subsequently refunded. The only headache I had was the issuing of a new credit card and credit card number. I also had to wait a good two weeks until the new credit card arrived in the mail. It gave me a scare as I realized I could easily be the victim of credit card fraud, just like anyone else, no matter how careful I thought I was.

While it’s tough to avoid this type of scam altogether, we can be more cautious with our credit cards and check cards. It seems these days we hand our credit cards over to just about anyone who will take them. And we really don’t pay attention to what these employees do with the card for the brief minute or two that they have it. Any merchant or employee can easily carry a credit card skimmer in their hand or place it under their register and quickly swipe it in the blink of an eye. Instant credit card fraud!

So keep a watchful eye on who handles your credit card. While it’s not always possible, in the case of restaurants for example, you can be more vigilant on a day-to-day basis with most merchants. And if you’re skeptical, try using cash instead.

This is another great reason to check your online credit card statement on a daily basis to make sure any fraud doesn’t go undetected. If you do suspect fraud, contact your card provider as soon as possible to discuss the issue.

Related Topics:

1. CVV2 Credit Card Scam
2. Watch Out for Vishing Scams
3. I-Cache: All in One Credit Card Device
4. Restaurants Using Technology to Improve Credit Card Security
5. Credit Card Limits on Gas Purchases?