A new problem has emerged in the realm of card payments, and recently, reports about thefts through skimming have been making headlines.
The method of theft and fraud (skimming) in point-of-sale (POS) devices works like this: the thief installs a skimmer on the POS machine. The thief, who is either the seller or has placed the card reader on the counter, swipes the customer's card and, after entering the PIN, instantly gains access to all the customer's information.
Although copying a bank card might seem complex, thieves are so skilled at it that they can replicate cards quickly and efficiently. If the customer isn’t paying attention, they may not even realize the fraud has occurred until it’s too late.
Bank cards have a magnetic strip on the back, which stores your account information. This data is embedded by the bank onto the card. When you insert your card into a card reader or ATM and enter your PIN, the system sends this account and PIN information to its central database. Only if the information is verified by the system will you be able to use your card. As previously mentioned, copying a card is essentially transferring the data from the magnetic strip onto another card, which means the system won't be able to tell the difference between the original and the counterfeit.
In a genuine POS device, when you insert your card, about two finger widths of the card remain outside the machine. If the card goes in too deep, it’s likely a fake reader. If this happens, don’t enter your PIN or share your information, as the device might be used to steal your details.
In counterfeit POS devices, the slot where the card is inserted is often wider, typically around the width of one finger. In authentic devices, the gap is much smaller. If you notice this, cancel your purchase and report it to the relevant authorities to protect other customers from falling victim.
You’re likely familiar with the soft, responsive keys on authentic POS devices, which make it easy to enter your PIN. Fake POS devices don’t have this feature. Their main purpose is to read the hidden information on your card and the PIN you provide, enabling them to replicate your card. Always enter your PIN yourself—never tell the seller. If you don’t, your card details are likely to be compromised.
A common sign of a fake POS device is the lack of flashing LED lights, which are found on most authentic machines. If the machine doesn’t have these, avoid using it for your transaction.
The best defense for cardholders is to be more vigilant when making card payments. Paying close attention, safeguarding your PIN, and not trusting street vendors with portable POS devices can significantly reduce the likelihood of falling victim to fraud.
Remember, a copied bank card is useless without the PIN. Always insist on swiping the card yourself and entering your PIN personally to prevent the need to verbally provide it.
Regularly change your PIN and avoid choosing easily guessable ones based on your card number, account number, or other identifiable information that could be exploited by thieves.
