Credit card hacks are becoming increasingly common, with major businesses like Wendy’s restaurants and Hyatt Hotels among those affected in early 2016. Though no one who uses a credit card is 100 percent safe, an awareness of the criminal strategies involved in these thefts can give you an edge.
Credit Card Skimmers
Skimmers have been around for a long time, but they’re still an effective way for criminals to get your credit card data if you’re using a card with a magnetic stripe. A skimmer can fit neatly on the front of any device where you swipe your card. They’re most common on ATMs and gas pumps. In most cases, a discreet camera is also hidden nearby to record your pin as you enter it. Some criminals develop an entire overlay for the pin pad to record your entry.
Skimmers lift information from the magnetic strip on your credit card, giving thieves the information they need to begin making fraudulent charges on your account. While the PIN is a helpful component, as most online shoppers know, it’s not always necessary to complete a transaction. Chip and pin cards are putting skimmers out of business because the chip embedded in these cards generates new transaction data with each use that’s not as vulnerable to this type of scam.
Malicious Software
High-tech criminals equipped with malicious code are one of the biggest threats to today’s credit card users. Most data theft is targeted at the retailer rather than the consumer. A criminal will get only minimal information by planting spyware on your computer, but they can access thousands if not millions of people’s credit card information with a well-placed hack into a major retailer’s system.
The Payment Card Industry Data Security Standard (PCI DSS) provides detailed guidelines for retailers that will help them protect consumer information. However, despite their best efforts, even major companies have fallen victim to hacks in recent years, including eBay, Target, Staples, UPS, Home Depot, AOL, and JP Morgan & Sony. Though the number of daily hacks fell in 2014, 43 percent more retail data was stolen, demonstrating the far-reaching impact of modern hacking.
Phishing Scams
Phishing scams play on the trusting or lackadaisical nature of many Internet users. They typically take the form of seemingly legitimate emails, though you may even see a phishing scam via text. Taking on the guise of a trusted retailer or financial institution, the phisher asks you to verify your personal information. The phishing scam often directs you to a site that looks remarkably similar to the institution’s real web page. However, you’re not communicating with a trusted source. You’re sending your data to an unknown criminal instead.
Due to these scams, it’s almost unheard of for a company to request your information in this manner now. If you get a suspicious message, pick up the phone to confirm what’s going on.
Careful use of a chip and pin credit card will minimize your risk of theft, but no credit card user is immune. Keep a close eye on your accounts as well so you can spot suspicious activity and halt criminal use early.
Image via Flickr by Pure Metal Cards.
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