Money and fraudsters both never sleep!
With almost 3 billion people worldwide now shopping online, including more than 29 million Canadians, credit card fraud is always just around the corner. Here are 10 ATM and credit card skimming techniques used by fraudsters
Physical skimmers are devices that fraudsters install on legitimate card readers, such as ATMs, gas pumps, or payment terminals. These devices are designed to capture the data from the magnetic stripe on a credit card when it is swiped or inserted. Fraudsters later retrieve the skimming device and use the stolen data to create cloned cards or make fraudulent purchases.
Overlay skimmers are typically placed over the existing card reader, blending seamlessly with the legitimate interface. When the victim inserts their card, the overlay skimmer captures the card details while allowing the transaction to proceed normally. These devices are often difficult to detect without close inspection.
Bluetooth skimmers use wireless technology to transmit stolen credit card data to fraudsters. These devices are discreetly placed near legitimate card readers and can collect information from multiple victims. The fraudsters can remotely connect to the skimmer and retrieve the stolen data without arousing suspicion.
RFID skimmers target contactless credit cards that use radio frequency identification (RFID) technology. These skimmers intercept the wireless signals emitted by the card and capture the sensitive information contained within. This technique allows fraudsters to steal ATM or credit card details without any physical contact.
Fraudsters employ malware attacks to target online payment systems or compromised websites. By injecting malicious code into these platforms, they can intercept and record credit card information entered by unsuspecting users. This technique is particularly effective when users fail to update their devices and software with the latest security patches.
Phishing scams involve the use of deceptive emails, messages, or websites that imitate legitimate financial institutions or online merchants. Victims are tricked into revealing their credit card information, which fraudsters then exploit for fraudulent purposes. Phishing attacks often rely on social engineering tactics to manipulate individuals into providing their sensitive data willingly.
Fake Payment Pages
Fraudsters create fake payment pages that closely resemble legitimate ones, especially during online transactions. Unsuspecting users enter their credit card information into these fraudulent pages, unknowingly exposing their details to the fraudsters. These pages are often part of well-crafted scams designed to deceive users into thinking they are entering their information on a trusted platform.
Keyloggers are malicious software or hardware devices that record keystrokes entered on a compromised computer or mobile device. If a victim enters their credit card details while a keylogger is active, the fraudsters can easily access this information. Keyloggers can be installed through infected attachments, compromised websites, or even physical access to a device.
Large-scale data breaches can result in the theft of millions of credit card records. Cybercriminals exploit vulnerabilities in the security infrastructure of organizations to gain unauthorized access to their databases. Once they obtain the ATM or credit card information, they sell it on the dark web or use it for fraudulent transactions.
SIM Card Swapping
SIM card swapping involves fraudsters convincing mobile network operators to transfer a victim’s phone number to a new SIM card under their control. By doing so, they can bypass two-factor authentication measures that rely on text messages for verification. With access to the victim’s phone number, fraudsters can intercept one-time passwords and gain unauthorized access to credit card accounts.