A new credit card fraud is beginning to make the rounds. "Skimming" involves copying the information from a cards magnetic strip and creating a new card with the same account data. Card reading devices are readily available over the Internet.
When a credit card is stolen, the thief usually uses it as soon as possible , creating an unusual buying pattern thats picked up by the issuers fraud-detection software. But a thief who "skims" a card doesnt have to use it right away. If your card issuers software detects transactions that differ from the way youve usually used your card in the past, you may get a call from the banks security department.
The best way to prevent skimming is not to let your card out of your sight, and to closely monitor your statement for unfamiliar purchases. In any case, youre not liable for more than $50 worth of fraudulent credit card transactions.
Source: The months ahead: credit cards - call this a skim scam. (1999, June). Kiplingers Personal Finance Magazine.
[ Home | Your Money | Get Organized | Tightwad Tidbits | Living Better | Safety & Privacy | Buyer Beware | Kids & Money | About CEU | Search ]
|Web site coordinators:
Last updated: March 09, 2005
|Web site established
University of Missouri Extension does not
discriminate on the basis of race, color, national
origin, sex, religion, age, disability or status as a Vietnam-era veteran in employment or programs.