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Education
ChapterTitle

Return of the skimmer restaurant employees can be recruited to skimming rings.
The devices they are given can be about one-fourth the
size of a cell phone. This method is popular because
typically when you pay your bill at a restaurant, the waiter
walks away with your card and can easily swipe the card
undetected through a skimming device.
There isn't much the consumer can do to counteract this
type of fraud. However, on the flip side, this is probably
one of the easiest methods for banks to catch when multiple
cardholders are hit with fraud in the same location. All of
the skimmed cards will have the retail/restaurant charge
in common.

Skimming at ATMs and gas stations is also prevalent.
Why? Everyone takes cash out of the bank and will
need gas at some point. These are high-traffic areas with
recurring business at any time of day. In this scenario,
credit card skimmers are typically placed over the card
swipe mechanism on both ATMs and pumps. At ATMs
the fraudsters may take a step further by placing a pinhole
camera to capture debit card PINs. This is done so fake
By Nicholas Cucci cards can be made for withdrawing cash from cardholders'
Fluid Pay LL checking/savings accounts.
redit card skimming has made a resurgence Another reason fraudsters are attracted to gas stations is
and is hitting media outlets like crazy. With their vulnerability. By this I mean gas stations typically
increased usage of credit cards it's inevitable have universal keys. They are easy to gain access to, the
C for fraudsters to keep trying old methods that key opens up the pump enclosure, and a skimmer can be
were somewhat successful. The worst part of credit card installed in less than 10 seconds behind the scenes.
skimming is the cardholder is blindsided, particularly
when their credit card has never left their possession. How can we cut back on credit card skimming?
It all starts with us. We need to sell secure solutions and
According to the Federal Reserve and Experian, card use strengthen our relationships with merchants. Fraud is the
is on the rise and won't slow down anytime soon. Average number one fear of consumers, and it has been basically
credit card debit rose from $5,516 in 2014 to $6,040 in 2018. since the inception of credit cards. Our industry is based
Total revolving consumer debt reached $1.057 trillion in on risk. It's our obligation to mitigate that risk.
March of 2019; the average credit card balance was $6,194.
Of the American families that spend more money than they One of the simplest, most basic ways to prevent this type
intake, 43 percent borrow and use credit cards to finance of fraud is education – education to our clients. Explain to
the shortfall; and 57 percent of Americans use credit cards them what to look for and how to check each device they
for convenience and do not carry over a balance. have. This will ensure good habits for the merchant to
follow. Remaining proactive is essential to reducing one's
Fraudsters typically run in five to seven-year cycles, and risk. This includes training, training and more training.
they keep recycling old ways to commit fraud. Most merchant sales staff receive entry-level training on
What is credit card skimming? how to use equipment and minimal education on how
to identify and prevent fraud. Keeping staff updated on
Credit card skimming occurs when a fraudster places a prevention will have a positive impact on your customers'
small device at or within a POS mechanism to steal card profit margins as well as your own.
information. When a credit card is swiped through a
skimming device, the device captures and stores all the Nicholas Cucci is the co-founder and COO of Fluid Pay LLC and
details stored on that card's mag stripe. The transaction former director of marketing for NMI. Cucci is also a graduate of
proceeds as normal, and the cardholder has no knowledge Benedictine University and a member for the Advisory Board and Anti-
of the theft.
Fraud Technology Committee for the Association of Certified Fraud
Restaurants and retail locations are among the places Examiners. Fluid Pay is a 100 percent cloud-based Level 1 PCI Payment
where skimming occurs, and this type of skimming Gateway processing transactions anywhere in the world. Contact Nick
is difficult to identify and catch. Retail workers and at Nick@FluidPay.com.

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