Credit Card Skimmers

Would you notice if a clerk swiped your card through a two card readers in one swift movement? Would you be able to tell if the gas pump where you swipe your card had a "bug" built in to the existing pump's reader, saving your data both to the pump to make your gasoline purchase and to the "bug" itself for later retrieval by the thief? This type of credit card theft comes from the use of credit card skimmers – small units that work by swiping the credit card's magnetic strip through them; just as you would if you were making a purchase. Smart thieves have learned how to attach these units to existing credit card readers so it is almost impossible to detect when one is being used. When a card is swiped through the reader, the card number, account holder name and address and sometimes even the pin number are stored so the thief can access it later. From the stored information (on however many credit cards the thief was able to "skim" through the machine), counter fit, "cloned" credit cards are created and then used to make purchases.

Unbelievably, it is not difficult to get a credit card skimming machine. They can be searched for and purchased online, making it possible for any aspiring thief to gain access to a skimming machine for around $300. Thieves can then choose to sell the card information to "companies" who make counter fit credit cards; or perhaps they'll purchase the equipment necessary to create their own fake credit cards, for around $10,000.

Credit card losses due to credit card skimming theft is estimated at $1 billion each year.

If you've been the victim of credit card fraud, you should know that the Truth in Lending Act limits your liability to $50 is the card has been stolen or lost. Most card issuers waive that $50 fee, as well. But don't think all cardholders aren't paying for these crimes- because we are; in the form of higher interest rate , finance fees and miscellaneous fees. Consumers who are victims of identity theft/credit card fraud also pay in the time it takes to fix their credit report It can take months of phone calls and letters to credit reporting agencies to get errors removed and corrected from your credit report; and it's possible that not all errors will ever be fully corrected which can impact your future ability to obtain credit; or affect the interest rates you pay on the money you are able to borrow.

The importance of checking your credit card statement every single month can't be stressed enough. The sooner you are able to recognize fraudulent activity, the better off you will be in putting a stop to it. Many people set their accounts up to pay automatically with checking account withdrawals and such; but even if you do this, you need to be looking over each transaction on your credit card statement regularly to ensure that only charges you've authorized are appearing on your statement.

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