Having milk skimmed might be acceptable to some, but nobody wants their cards skimmed. Yet the latest research reveals that one in six Australians have been victims of skimming in a single year!
The disturbing finding was published by Finder after conducting a survey of more than 1000 Aussies. It found that 17 per cent of respondents had their debit or credit card skimmed over the previous 12 months.
Another 7 per cent of respondents said they had not been skimmed in the past year but had been previously. A further 3 per cent were unsure if they’d been skimming victims in the past 12 months.
Finder’s money expert, Rebecca Pike, said scammers were becoming increasingly sophisticated in their skimming techniques. These include methods that can bypass the need for physical access to a card. “It seems almost impossible for someone to steal your credentials without having your physical card,” she said. “But it happens quite often.
“Phishing is one of the most common schemes scammers will use to coerce you into providing your credit card information willingly, but there are also a number of other ways scammers are targeting vulnerable individuals,” Ms Pike said.
As well as skimming machines, unsecure wifi access also allows thieves to copy card information and then make fraudulent purchases.
What is skimming?
Many Australians think of ATMs when they see the term ‘card skimming’. In years gone by scammers installed card readers (skimmers) disguised to look like part of an ATM. The skimmer attachment would collect card numbers and PIN codes, which were then replicated into fraudulent cards.
While such techniques are still in use, scammers have broadened their horizons. The term skimming now often refers to other techniques used to steal data from cards.
This includes through the use of EFTPOS facilities. In such cases, criminals steal the EFTPOS terminal, make changes to it, and then put it back. Alternatively, they might swap the terminal with one they have already modified.
In either case, the modified or replaced terminal reads and stores your card’s details along with your PIN. These are then used to create fake cards or make fraudulent payments online or over the phone.
Retailers have at least a partial responsibility for ensuring their EFTPOS terminals are guarded against evolving skimming techniques. Their financial institutions can assist with this.
Nevertheless, cardholders can also take action to minimise the risk of having their data skimmed. Many of these seem quite obvious but are often overlooked. Simple vigilance can go a long way to stopping skimming in its tracks.
Protecting yourself from scammers
“Check your account activity frequently so you can report something suspicious as soon as it happens,” said Ms Pike.
I generally check my account activity daily. This serves to remind me if I’m being a little bit too liberal in my spending and also means I’ll likely spot any dodgy activity early. For some, a daily check might be too much of an ask. However, even once or twice a week is better than never.
Another measure, said Ms Pike, is to “opt in to receive alerts when you make transactions. Most companies have fraud detection systems in place to notify you if they suspect a suspicious charge.”
And, of course: “Don’t give your card information to anyone over the phone or via text or email,” she said. “If someone calls and asks for your number over the phone, assume it’s a scam.”
Have you been the victim of skimming? How did you find out? Let us know via the comments section below.
Also read: Small banks need to do better on scams, says ASIC
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