Credit Card Skimming: How Your Credit Card Data Can Get Stolen

Credit card skimming began as a physical device installed on a retailer's card reader to steal your card information and commit identity theft. Credit card thieves have developed their methods, and digital credit card skimming is now the main method fraudsters use to swipe your personal financial information.

In this guide from Missouri Title Loans, Inc., we will explain how to protect yourself from both physical and digital card skimming attacks. We will also explain how to handle stolen credit card data and how you can use title loans to pay for financial emergencies after suffering identity theft.

How Does Credit Card Skimming Work?

Credit card skimming is a method for a thief to obtain someone’s personal financial information from an ATM, debit, or credit card. They can steal your PIN and use it to create fake payment cards, allowing them to make unauthorized purchases or steal money.

In the past, fraudsters have placed a skimming device on top of the card reader or put it into a slot to steal your card information. They are surprisingly small and always hidden well, so you may swipe or insert your card without realizing the device has been compromised. As soon as you do, your name, card number, and card expiration date have been stolen.

However, identity theft practices have developed. Criminals now install a camera near the card machine's keyboard or place an overlay on top of the keypad to record the ZIP or PIN code you enter. Regardless of the precise device used, it usually stays in place for a long time. A 2022 FICO report noted that skimming devices stole data from 185 cards on average.

What Happens If Your Card Gets Skimmed?

Credit card skimmers can do a lot with your stolen credit card data. After your information has been stolen, you are exposed to fraud. They can use your information to make purchases and ruin your credit.

Once credit card skimmers have successfully stolen your credit card data, they tend to do one of the following things:

• Make unauthorized transactions:  This could lead to irreplaceable financial losses.
• Rapidly max out your credit limit: This can have severe negative effects on your credit score, which often takes a long time to repair.
• Create a new card to withdraw money from ATMs: You can lose money, and it can be harder for you to track losses from a new card.
• Selling your financial information on the dark web: The fraudsters can share your information with other criminals, opening you up to even more financial losses.

How To Prevent Credit Card Skimming And Identity Theft

You must take every step you can to avoid identity theft to prevent financial losses and catastrophic credit drops. Having your credit card data stolen can be calamitous and damage your finances for years. Taking precautions to avoid credit card skimming is essential to avoid financial disaster.

While you can never be totally sure you won't fall victim to credit card skimming, you can use the following tips and tricks to protect yourself against this unfortunate occurrence:

• Use the safest payment method: If possible, tap your digital wallet (e.g., Apple Pay or Google Pay) or a contactless card rather than swiping or inserting it into card readers at sales terminals. If you don't have the option to tap, insert the card's chip instead of swiping — it's the safer choice.
• Compare card readers: When checking out, check the card reader with another one to see if the keypads look the same. Don't be afraid to ask to switch to a different card reader if you notice any differences, including minor ones like tiny holes or strange colors. Even the smallest things could indicate a skimming device. 
• Check for SSL certifications: Never input your credit card details into a website that doesn't have an SSL certification (i.e., https). They are far more vulnerable to online credit card skimming attacks than those with the certification.
• Check security seals: Depending on the gas station, security seal tape may be on the pumps. If the tape is broken or says "Void," don't use your card.
• Set up transaction alerts: Activate transaction alerts on all your accounts. You're much more likely to catch unauthorized activity earlier.
• Update your pin: While changing your PIN can be frustrating and time-confusing, it offers better security and reduces your risk of unauthorized access.

What To Do If You Become A Victim Of Credit Card Skimming

Even with the best prevention methods (like those discussed above), you could fall prey to financial and identity theft through card skimming. If this occurs, you need to act fast to mitigate the fallout and regain what's rightfully yours.

Here are a few things you should do after suffering identity theft:

• Notify your bank: As soon as you realize you've fallen victim to credit card skimming, you must contact your bank representative. They will lock the card and freeze your account to prevent unauthorized usage. Depending on your bank, you may be able to lock your card using the appropriate application.
• Get a replacement card: If you suffer from stolen credit card data, you will need to replace your credit card. Your credit card company will likely send it automatically after you notify them of the fraud, but make sure you request it if you don’t.
• Report credit card skimming to the FTC: Once you're happy you've prevented money from falling into the wrong hands, report card fraud to the necessary parties. This may include financial institutions, government organizations, and relevant retailers.
• Update your accounts: Change the password of any accounts you linked to the compromised card. Depending on the severity of the stolen credit card data, you may need to update your subscriptions, bills, and recurring payments with new card information.

Getting A Title Loan To Handle Expenses After Suffering Credit Card Skimming

If you've fallen victim to credit card skimming and need emergency cash without lengthy processes, you can turn to Missouri Title Loans Inc. We offer title loans, which are secured loans for bad credit that help you get money when you need it most.

With our title loans, you can borrow up to $15,000, depending on the value of your vehicle. The more it's worth, the more you can borrow. Just keep in mind that you must own the car outright. We place a lien on your title to secure the loan, and we can't do that if you're currently paying a lien off. 

To qualify, you only need three required items — your state-issued identification (i.e., your driver's license, military ID card, student ID card, passport, etc.), your lien-free vehicle title, and your vehicle itself for inspection.

Get A Title Loan In Missouri – Borrow Up To $15,000 Today!

Credit card skimming leads to identity theft and stolen credit card data. If you suffered the financial downsides of credit card skimming, Missouri Title Loans, Inc. could help with our same-day title loans. You can start the process online and get approved the same day you apply. We accept borrowers of all credit types and can help you borrow fast emergency cash without taking your car.

If you need secured loans for bad credit, contact us for assistance today. Fill out our online inquiry form or call us directly to discuss the loan terms for our Missouri title loans.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.