Credit card fraud has reached epidemic status in the United States, according to Consumer Reports, and further growth is expected.
In it’s June 2011 issue, the magazine says that 32 percent of U.S. consumers reported [credit] card fraud in the past five years — up from 27 percent in 2009.
That number is likely to grow because the credit and debit cards most Americans use are surprisingly vulnerable to fraud, relying on decades-old technology that makes them more susceptible to being skimmed and counterfeited.
A Consumer Reports investigation found that even so-called “contactless” credit cards, which use RFID (radio frequency identification) chips to allow consumers to avoid swiping their cards through a card reader when they make purchases, are vulnerable to “virtual skimming.”
We witnessed how they can transmit data such as your card’s account number, expiration date, and security data that thieves could intercept and use to make counterfeit cards.
To prevent yourself from becoming a victim of the card skimming epidemic, TechRepublic recommends the following steps:
- Be familiar with the ATM’s physical construction (use the same ATMs and be on the lookout for physical changes and modifications)
- Make sure security cameras are trained on the ATM. (It discourages thieves and fraudsters.)
- Opt for inside ATMs. (It sounds obvious, but inside ATMs are less likely to have installed skimmers)
- When it comes to self-service, look for operations that are always open. (Thieves prefer to install skimmers when service stations are closed and no one’s looking.)
- Keep an eye on your debit/credit card when others have it. (Handheld skimmers are more common than you think).
- Above all, know your limit of liability. (Typically, there is less risk in using a credit card than a debit card, but check with your bank.)
For more information on these precautions, visit http://www.techrepublic.com/blog/five-tips/five-tips-to-avoid-debitcredit-card-skimming/299
For more information on the threat to your credit cards, visit http://www.consumerreports.org/cro/magazine-archive/2011/june/money/credit-card-fraud/overview/index.htm.
To see how credit card skimmers work, visit http://krebsonsecurity.com/all-about-skimmers/
