Categories: Business

Card skimmers are on the rise. Here’s how to spot them.

Credit card skimmers are on the rise across the country, targeting the country’s most financially vulnerable people.

The FBI estimates that credit card theft costs consumers and banks about $1 billion a year. Last year, Fair, Isaac and Company, a financial data analytics firm, found that credit card theft increased 96% from the previous year.

Last month, federal Secret Service agents raided 472 businesses in Florida after receiving a tip about a spike in EBT scams, WJXT reported. Police found 13 devices across the state. The Secret Service estimated that police prevented about $1.3 million in losses through the raids, WJXT reported.

Authorities across the country say reports of credit card and EBT fraud have increased over the past year.

The Washington State Department of Health and Human Services announced this week that it has seen an “alarming increase in fraud” related to EBT skimming. The agency estimates that EBT recipients have lost about $5.5 million over the past two years to the fraud, The Seattle Times reported.

Authorities in Virginia, New York and other states have also issued similar warnings in recent weeks.

The New York Office of Temporary and Disability Assistance issued an EBT Scam Alert on July 2, warning of an increase in phishing and credit card theft scams. Phishing is a form of scam in which criminals attempt to obtain your personal information by pretending to be someone you know or trust. Perpetrators often send emails pretending to be from your bank or a social media platform you use.

Although card skimmers are effective at stealing data, EBT cards typically require a PIN number that they can’t easily extract from the machine, according to the FTC.

Scammers are using phishing tactics like sending text messages or installing hidden cameras next to cash registers to steal PINs, the agency said.

To avoid card skimming scams, the FTC recommends checking to see if your card reader is loose when making a payment, changing your EBT PIN at least once a month, being vigilant against phishing scams, and regularly checking the amount in your EBT account.

The New York Office for Temporary Disabilities also recommends checking for discoloration between the machine body and the card reader.

“The easiest way to check for a skimmer is to gently pull on the terminal. They are fragile and easily detached,” the agency says. “If you notice any signs that a skimmer may be in use, do not swipe your card and alert the store manager. Contact the police and notify your local social services department as soon as possible.”

News Source : www.businessinsider.com
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Eleon

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