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Skimming

With identity theft being a headline in media of all forms worldwide, awareness and, likewise, fear of identity theft have risen to new heights. Everyone wants to know what it is, how they do it, and how to best protect themselves so they don't fall victim to these terrible crimes. One such method of identity theft, and a common method at that, is known as skimming.

Put simply, credit card skimming is one of the most commonly used forms of identity theft that is in use today. Reported losses exceed $8.5 billion a year from skimming alone! This economically devastating form of consumer fraud is a plague that can be prevented or, at the very least, deterred, when one knows how skimming works and what simple steps can be followed to reduce the risk. Simply put, it's all about knowledge and the proper application of it.

An example of common skimming in use today can occur at the local restaurant. A waiter takes your credit card and walks to the back POS system and proceeds to swipe the card, as is usual. However, what isn't seen is the magnetic card reader in the waiter's pocket which was used to scan the card first. Later on, the information is sent overseas for production of a fraudulent card that is nearly identical to the original in every way. That card can be used just like the original, jacking up ridiculous charges against the card and its owner.

In situations such as this, obviously, there will always be a risk since it can happen to anyone, anywhere. For this, there is not too much that can be recommended aside from choosing to pay cash when available instead and, in a more general sense, to always keep an eye on bank account balances or credit card balances to locate if the card is being used fraudulently as soon as possible and to cancel that card right away.

But this technique can be used almost anywhere, and the best way to prevent it is to always keep an eye on the card. Don't let someone walk away with your card “accidentally” (such as when purchasing an item from a store) when it is not needed. Always keep the card in your sights. Make sure that the card only goes through the usual process of being swiped and then returned straight back to you. No funny games, no exceptions.

Skimming is a tricky form of credit card fraud and identity theft. It can be hard to detect and even harder to avoid. The only way to reduce the risk is to always be aware. Going on that advice, pay with cash when at all possible, especially in areas such as restaurants where waiters must walk away with your card. Lastly, as a suggestion that applies to anyone in any situation, it is important to check your balances regularly (something that is easily done thanks to the internet) so you can be able to detect when fraud occurs as soon as possible. Being proactive is the key to avoid being scammed.

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