Understanding and Protecting Yourself from Credit Card Shimming

In today’s digital age, identity theft has become a significant concern for many individuals. One of the more sophisticated techniques used by identity thieves is credit card shimming. This method involves placing a small device on a payment terminal to scan and store your card’s microchip information. The stolen data can then be used to commit fraud. At O1ne Mortgage, we understand the importance of protecting your financial information, and we’re here to help you stay informed and secure. If you have any mortgage service needs, don’t hesitate to call us at 213-732-3074.

What Is Credit Card Shimming?

Credit card shimming refers to the theft of data from a card’s microchip during a transaction at an ATM or point-of-sale terminal. Both debit and credit cards are susceptible to this type of fraud. A shimming device is installed inside the card reader slot of an ATM or terminal, making it nearly impossible to detect. Once the device captures the data from unsuspecting cardholders, the thief retrieves the device to access the stolen information.

Where Are Shimming Devices Found?

Shimming devices are commonly found at:

• Gas pumps
• ATMs
• Vending machines
• Parking meters

Shimming vs. Skimming

Shimming is a more advanced technique compared to skimming, another method used by thieves to steal credit card information. Skimming involves attaching devices to ATMs, gas pumps, and point-of-sale terminals to capture data from magnetic stripes or store card PINs. With this information, scammers can create fake credit or debit cards.

Shimming devices emerged when card issuers began adding microchips to complement magnetic stripes. Shimming targets the data on a card’s chip rather than its magnetic stripe. Although the technique differs, the result is the same—the theft of money from your credit card or bank account. Shimming devices are harder to spot than skimming devices because they are smaller and hidden inside the card reader slot.

How to Protect Yourself from Shimming

Here are five proactive steps you can take to help protect yourself from shimming:

1. Use contactless payments: Take advantage of contactless payment methods like Apple Pay, Google Pay, and Samsung Pay.
2. Pay inside: At a gas station, pay for your fill-up inside the station rather than at the pump.
3. Turn to bank-owned ATMs: Try to use a bank-owned ATM rather than a non-bank ATM. Non-bank ATMs, such as those at convenience stores, may not be as secure as those operated by financial institutions.
4. Look for a safer ATM: Crooks tend to install shimming devices in ATMs in poorly lit, less public places. Conduct your business at ATMs in well-lit public areas.
5. Watch the card slot: Pay attention to how easily your card fits into a card reader slot. If it’s difficult to slide your card into the slot, be suspicious. This might indicate a shimming device inside the card reader.

What to Do if You’re a Victim of Credit Card Shimming

Even if you take the right steps to prevent card shimming, you might still become a victim. Here’s what to do if that happens:

1. Contact the card issuer right away: As soon as you realize your credit or debit card has been shimmed, reach out to the card issuer or bank.
2. Set up fraud alerts: You have the right to request a free fraud alert through Experian or the two other major credit bureaus (Equifax and TransUnion). A fraud alert asks creditors to verify your identity before issuing new credit in your name.
3. Keep an eye on your accounts: Review your credit card and bank statements regularly to spot any suspicious transactions.
4. File a report with the Federal Trade Commission (FTC): Visit the FTC’s IdentityTheft.gov website to submit a report about suspected shimming.

The Bottom Line

Scammers are always looking for ways to make a quick buck, and credit card shimming is one of their favorite methods. By installing a shimming device at a gas pump or ATM, a thief can steal data from a card’s microchip and create a fake card. If you suspect you’ve been a victim of a shimming scheme, take action as quickly as possible to minimize further distress.

At O1ne Mortgage, we prioritize your financial security and are here to assist you with any mortgage service needs. For more information or assistance, call us at 213-732-3074. Stay informed, stay secure, and let us help you navigate your financial journey safely.