How The Con Works
Credit cards and bank cards have a lot of data imbedded in them. Some of it is obvious, for instance, the data printed on the card itself, such as the name, card number, expiry date or CVV code (card verification value), which is usually on the back. But this information is also stored in the magnetic stripe and the chip, which can only be read by machine.
Criminals can read this data in a process known as skimming. They use various devices, known as skimmers, to steal the data without the victim even realising it has been done.
Crooks can skim the card when the customer is using an ATM or paying at a cash till, by tampering with the machine that reads the card and instead of processing it normally, by storing the information so the criminal can fraud it later.
On an ATM crooks can put a fake receiver which the unsuspecting consumer puts their card into. It looks normal but actually just copies the card details.
Once the thieves have got the bank card details, they use them to buy things or withdraw cash themselves. They also can sell the information on the dark web for another criminal to carry out the fraud.
But it can be even worse than that. Many cards now transmit the details wirelessly.
And that can let in more thieves who can use a small bit of tech to steal your details without you ever handing over your card. This kind of electronic theft is called RFID skimming. To stop that happening, some people use RFID blocker wallets/purses which block the signal. There is a range of them available which you can find online.
Often the thieves make very small purchases so the customer doesn't notice. Even more upsetting and troublesome - the bank may contact you to ak you if the £1 charge they have seen is something you wish to approve. You might think it is a small charge by someone else in the family and rather than go to the hassle of going through every subscription you have, tell the bank that it is fine to process the charge. After all it is only £1.
The thieves can then put the same through 20-30 times a day for weeks - robbing you of hundreds if not thousands of pounds. You can then have trouble claiming the money back from the bank as they may say that you authorised the payment when they queried it and it is therefore your responsibility to shoulder the burden of the theft. If this does happen to you - fight it and don't just accept what the bank says. If necessary take it to the Financial Ombudsman.
How To Protect Yourself
Does It Look Odd?: Take a moment to look for anything that looks odd on an ATM, such as overlaid keyboards or slots. Anything that looks like it shouldn't be there or may have been added later or is loose. If you think it may be fake - use another terminal.
Keep Notified: If your card has a phone app - make sure the settings send you a message every time your card is used. That way, if anyone is using your card, your phone will vibrate or ping each time they try and use it. That way you can immediately suspend the card and inform the bank.
Cover Your Hand: Because thieves can place a hidden camera in order to record PIN, cover the hand you use to type in your code. You're not just hiding it from people you can see but cameras you can't.
Shimmers
Instead of skimmers, which sit on top of the magstripe readers, shimmers are inside the card readers. When you slide your card in, the shimmer reads the data from the chip on your card.
This is why it is even more important to keep an eye on what is being debited to your credit card - especially by using an app
What Happens If My Card Details Are Used By Thieves?
If you’ve had your credit card stolen or you’ve lost it, you should report it missing straight away. This is important as it shows you have acted responsibly, and that is a major plus on your side in making sure you are re-imbursed for any theft.
Technically, you could be liable for the first £35 of any sum spent on your credit card before you reported it stolen, but in practice this is often waived.
If you were responsible for the transaction or authorised someone else to use your card, your card provide won't refund you anything.
How To Escalate A Complaint
If you are not satisfied with your credit card company/bank - make a formal complaint in writing by asking them how to use their own complaints procedure. If you are still not happy, complain to the Financial Ombudsman.
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