How to Avoid Credit Card Skimming

Skimming is becoming an international problem that now is growing in the U.S. Losses exceed $1 billion a year, according to WTOP's Call For Action Director Shirley Rooker.

What is skimming?

Credit card skimming occurs when someone uses a hand-held device called a skimmer, which resembles an ATM keyboard. The credit card is swiped through the device, and the device reads the magnetic strips on your credit cards. Now the thief has the information needed to make a counterfeit card. Each skimmer can hold data from hundreds of different credit cards.

The data - often sold to other people - can be downloaded into a computer and e-mailed anywhere, and around the world counterfeit credit cards are being made.

The U.S. Secret Service is working with the credit card industry to track down skimming rings by assembling a database of locations where scams have occurred, according to Bankrate.com.

Where is skimming most likely to take place?

Restaurants are the most likely spot for skimming. In fact, restaurant employees have been prosecuted for skimming. The skimmers are often used outside of your sight when a waiter or waitress takes your card when you go to pay for a meal.

Are some people more likely to be victims than others?

Anyone who uses a credit card in places where it is removed from his sight can be a victim. However, gold or platinum cards are often targeted because of their higher credit limits.

In fact, Call For Action was the victim of skimming. Call For Action's credit card was skimmed while at a local restaurant. Within a few days, Visa called to ask if Call For Action had used its card at several nightclubs in Spain to run up a tab of more than $3,000. The credit card security department knew something unusual was going on since the card is one that's used infrequently. Fortunately, the charges were dropped but the card had to be cancelled and a new one issued.

How can you avoid being a victim of this type of scam?

You could watch the waiter as he processes your transaction, but that's not always practical. Frequent restaurants that process your credit cards at your table or where you take the card to a cashier so the card never leaves your sight.

The best thing you can do is keep track of your credit card bills to make sure there are no strange charges. Report the problems to credit card company, law enforcement agencies and to the Federal Trade Commission. You can also call Call For Action at 301-652-HELP or visit Call For Action's Web site. Call For Action volunteers have been specially trained to handle identity theft problems.

from WTOP