Watch Out For Credit Card Skimming

Most people would never hand over their credit cards to strangers, but many do every time they eat at a restaurant when they pay for their meal.

In New York City, investigators arrested 13 people accused of preying on unsuspecting patrons at restaurants in at least five states. They are expected to be arraigned Monday.

When customers paid by credit card, the crooks skimmed their information using devices so small, they can fit in a pocket.

"They take it out and they skim your card," The Early Show financial correspondent Susan Koeppen said. "And then they move on and they actually do your transaction. That little device can hold hundreds of credit card information. Then they sell that information. They make counterfeit cards and then they go on shopping sprees."

The people who were just arrested are accused of making counterfeit cards and racking up more than $3 million in fraudulent charges.

Sean Steele recently fell victim to skimming at a restaurant in Washington, D.C.

"You sort of just trust or trusted a waiter or server to run the transaction and bring my card back," he said.

Now some restaurants are taking action to combat the problem. Hooters, for example, is testing portable devices that will allow patrons to pay their tabs right at the table, so their credit cards never leave their sight. It's an effort to make things more convenient for customers and to crack down on fraud.

But this kind of theft isn't limited to restaurants. The No. 2 location is gas stations and it can also happen at ATM machines. It even happened to Koeppen.

"My credit card company called me and said, 'Are you in Japan right now buying shoes?' And I said, 'No, I'm in Chicago.' They said, 'Well, somebody has your credit card and is trying to buy a pair of shoes.' I looked in my wallet and I said, 'I have my card in my wallet.' They said, 'Oh, you've been skimmed,' " she said.

Koeppen has some tips for avoiding being skimmed:

Escort your card to the cash register and watch it. Don't let it out of your sight.

Pay at the table.

Check your credit card statement every month and dispute a charge that looks suspicious to make sure it is legitimate.

[freda260]

The government and banks already control too much,where have you been

[carlylaine]

I think the best way to prevent credit card fraud is to implant a chip with all information of the person who would otherwise have a credit card or debit card. Then allow the banks and government to be in total control.

I think it's a great idea.

hmmmm?

[apdepetris]

They have wireless devices available already. At a restaurant near my home they have curbside carry-out. When they bring your order out to you they have wireless card machines. They can swipe your card right there. You add a tip if you wish, then sign on the screen. They print a receipt right there and you're on your way.

Even if they don't cheat on swiping your card, the tip can be problematic because they add it on later. My grandfather (as well as many other patrons at a restaurant) got scammed because the girl would take a single digit tip, say $5, and insert a one in front of it after the customer had left, essentially adding $10 to her tip. The place got suspicious when they looked at my grandfather's bill and realized the tip was like half the bill. They gave him a call to verify and found out what had happened. He ended up testifying about it along with a bunch of other customers and the girl went to jail.

[jim32707]

When outside the US, cash, credit cards, travelers' checks, and ATM cards can be a problem.

Credit cards have only your number and expiration date and are easy to clone. There is no other identifying information. My card was cloned in Brazil.

If you carry cash, it can be stolen.

If you use an ATM for cash, the bank that has the ATM machine will charge you $5 and US banks such as Bank of America charge you 3% for an "exchange fee." If you use your card more than 2 times, BofA will charge you an additional $5 plus the 3%.

It is dangerous to check your account at a Cyber Point. They have no security.

Safes in hotel rooms are not necessarily safe. The hotel has another key or has a combination to the safe.

Sometimes ATM machines have gadgets put there by criminals to record your information.

No one wants travelers' checks these days. You get a bad exchange rate, but they do call to see if the check is valid.

[jim32707]

When outside the US, cash, credit cards, travelers' checks, and ATM cards can be a problem.

Credit cards have only your number and expiration date and are easy to clone. There is no other identifying information. My card was cloned in Brazil.

If you carry cash, it can be stolen.

If you use an ATM for cash, the bank that has the ATM machine will charge you $5 and US banks such as Bank of America charge you 3% for an "exchange fee." If you use your card more than 2 times, BofA will charge you an additional $5 plus the 3%.

It is dangerous to check your account at a Cyber Point. They have no security.

Safes in hotel rooms are not necessarily safe. The hotel has another key or has a combination to the safe.

Sometimes ATM machines have gadgets put there by criminals to record your information.

No one wants travelers' checks these days. You get a bad exchange rate, but they do call to see if the check is valid.

[clevercandi]

"I say get rid of credit cards and use finger prints."

Posted by fabdenise at 02:03 PM : Apr 23, 2007

I think retina scans would be better than fingerprints. I understand they are more difficult to duplicate.

Although, if someone really wants to commit this type of crime, there is very little one can do to stop it.

[fabdenise]

I say get rid of credit cards and use finger prints.

[mbr43171]

There is a very simple solution, one that I even contacted my card company about about 5 years ago. Let each person set a limit on their account that when this limit is exceeded a "See ID, ask for password" prompt would be given to the merchant. I asked VISA if they would set one for me for $50. I wouldn't be bothered to show my ID each time,I have my wallet in my have anyway. VISA said they could not do it. They are full of s***. They sure can send a prompt to the merchant when you haven't made a payment or you are behind. "Declined " That protects them of course but they wouldn't help me protect myself.

[drinuk]

The total responsibilty for these scams lies with the card companies and the banks. They all opted for the cheap option when buying both hardware and software. Surely it cannot be beyond computers to detect and halt payments from iregular locations many thousands of miles away from the card holders permanent location. In the UK attendents in Gas Stations have been scamming details after a purchase whilst never handling the card, sending the information to terrorist organisations in the far east. This means that whilst the card number is not printed whole on the receipt it is available on the machine for any crooked attendent to read, a scandalous breach of security by companies who can afford to do better. The answer to cards being scammed for overseas use could easily be rectified by issuing travellers with a secondry card for use abroad, a simple prefix to the holders number would suffice.

[geetar5150]

ahh... the anonymity that is cold hard cash- don't leave home without it.