How To Avoid Credit Card Skimming

By Author: Corey Work
Total Articles: 19
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Many people think that corporate identity theft occurs only at a high level within the organization. However, it is important to note that identity theft can also happen at the cardholder level and that this type of theft can easily be avoided.

Unauthorized users can access corporate card information in several ways, but skimming is one of the more prevalent methods used. By understanding how to recognize and avoid skimming tactics, you can easily lower the risk of corporate identity theft affecting your company.

What is skimming?

Skimming is a type of fraud where the information from your credit or fuel card is illegally captured by an electronic reading device and transferred to a duplicate card. This duplicate card can then be used to make unauthorized charges to your corporate account.

Skimmers, the illegal device that captures your card information, come in various shapes and sizes. These are typically small and unobtrusive devices and can be molded to fit over a banking ATM or gas pump card-reading device.

How do I identify it?

Because these devices can fit easily over card reading ...
... machines, and because most machines are not equipped to recognize when skimmers are in place, it is important for the cardholder to be able to detect these devices before information is captured. Fortunately, there are several effective ways to recognize skimming devices.

Look for tiny hidden cameras in and around the card-reader device. Instead of being placed directly over card readers, cameras used for skimming can take snapshots of your card as it is being used. Unauthorized users can then determine your name, card number, card type, and expiration date from these photographs, and use this information to make purchases.

Feel the key pad to make sure nothing has been placed over it that might be used to record your PIN number. Once a skimming device has captured your card number and expiration date, the unauthorized user only needs to determine your PIN number before being able to use your information.

Apply a small force to the card reader. A skimming device will usually dislodge easily from the true card reader. Do not extend enough pressure to damage any equipment, as a gentle shake can often be enough to displace the skimming device.

Be aware of your surroundings and people who may be watching in an attempt to "shoulder surf" to obtain your PIN number. Shoulder surfing is a term used to describe when unauthorized users stand close enough behind you to detect the PIN number you enter onto the card reader.

If you are suspicious about any card reader, report it immediately to the merchant, and check with your card company to ensure that no vital information has been compromised.

How can I mitigate these risks?

Recognizing card skimming is the first step towards avoiding it. You can also stay up-to-date on the latest information related to card skimming and other corporate fraud issues by visiting the Better Business Bureau ( www.bbb.org/business ) and the FTC ( www.ftc.gov ) websites on a regular basis.

Your employees are typically the most frequent card users, so it is also important to educate your employees about skimming fraud, how to recognize it, and how to avoid it.

Finally, check your fuel card and credit card invoices frequently for unauthorized charges, and report any suspicious activity immediately to your card company.
Comdata offers a comprehensive suite of Enhanced Authorization Controls for fraud protection. Prevent skimmers from getting a hold of your credit card merchant services by letting Comdata customize a program that meets your unique business needs.