Fraud Alert: Skimming

In Coon Rapids, law enforcement officials arrested and charged a man in February with aiding and abetting identity theft in connection with a suspected credit card skimming ring.

In Eden Prairie, a customer at a U.S. Bank in Eden Prairie, near the Eden Prairie Center mail discovered a skimming device in the bank ATM on March 19. According to the Eden Prairie Police Blog, the customer “had good reason to think something was out of the ordinary. The scanner that fell off the machine was actually a skimming device that had been placed there by someone attempting to steal financial card information.”

Stories about credit card, debit card and ATM skimming schemes have become common in news headlines lately. According to the Secret Service, the crime is responsible for about $350,000 of monetary losses each day in the United States.

What is skimming?
Card skimming involves grabbing the data off a credit card, debit card or ATM card at ATMs or other types of point-of-sale devices to manufacture fake cards to drain the victim's account. It occurs most frequently at retail outlets that process credit card payments -- particularly bars, restaurants and gas stations as well as ATMs.

The effects of this crime have implications for both consumers, who lose their money, and businesses, who often suffer a blow to their image, or even their reputation for security, if one of their machines is affected. Security experts urge customers using machines, to develop secure habits, and be on the lookout for the following scams and tactics often used in skimming schemes:

1. Keep an eye on your card
 Make sure your card stays in sight, and never let anyone leave of your presence with the card if you can help it.

2. Look for fake readers placed over card slots
Use an ATM you are familiar with so you know what it should look like and check it to make sure that it is solid and sturdy. Criminals often place fake readers that look like real ones over the slot where the card is placed or swiped. This captures the card information.Criminals will sometimes also place signs that say "No Tampering" in machines to discouraged concerned users who sense something amiss from trying to explore further. Other fake machinery may also include a PIN pad placed over the real one in order to capture PIN information.

3. Cover your PIN 
Another way skimmers get PIN info is by installing small, hidden cameras somewhere inside the machine. They can be in the wall, or even hiding inside marketing materials, like pamphlets which appear to be innocently sitting off to the side. Make sure to cover your PIN with your hand, even when you are alone. This may prevent a camera from detecting it and may also stop another type of scam: Shoulder surfing, which is done by a person who lurks nearby that is part of the scam who records your PIN for later use.

4. Avoid overly helpful people
Another way crooks get PIN numbers is by hanging out near or inside an ATM and offering help when the unit fails to "work." The scam involves capturing the card and the victim is perplexed as to why the machine is having problems. A helpful bystander will offer to help and ask for the person's PIN. Of course, once they have it, the card is as good as theirs.

5. Monitor accounts regularly
Failing all else, if you are hit by a skimming scam, your best defense is awareness of your own financial accounts. Regular monitoring will keep you on top of any suspicious activity that may occur as the result of a compromised account. Reporting fraudulent activity as quickly as possible gives you the best possible chance to recovering your losses.