All About Identity Theft

Date: 2010-02-08 18:38:16

By li baocai

Credit card fraud is the most common form of identity theft. Rather than stealing cards or opening new accounts, some identity thieves use a technique known as "skimming" to take your financial information and sue it for their personal gain.

Skimming occurs when you hand your credit or debit card over to someone. The thieves are usually employees who have physical access to customers' cards, such as waiters, cashiers, or bartenders. Once the card is in their possession, they can copy down the cardholder's name, card number and expiration date, and 3-digit security code. That's all they'll need to go on a shopping spree funded by the victim.

Skimmers have grown more aggressive in recent years. Rather than taking the time to write down victims' card numbers, all thieves have to do now is run them through a tiny skimming device. When a customer's card is swiped for a legitimate transaction, thieves can quickly swipe it a second time to capture the card information. The hand-held devices they use were designed specifically for this purpose. They are about the size of a cigarette lighter, and can easily be concealed in the palm of a thief's hand. Some victims have their information swiped right in front of them without noticing the theft.

Other skimmers target ATMs and gasoline pumps. By installing card-reading devices that look like a part of the machine itself, thieves steal bank account information, PINs, and credit card numbers. These skimming endeavors glean millions of dollars each year.

Sadly, skimming is hard to prevent. If you use your credit or debit cards to make purchases, you could be the target of a skimming scam. To minimize your risks, pay with cash whenever possible. Only hand your cards over to familiar employees. Because this isn't always feasible, the most important thing you can do is keep a careful eye on your bank and credit card statements. If you see unauthorized charges, you might be the victim of a skimmer. Contact your bank or card issuer immediately if you suspect fraud.

By its very nature, skimming is a sneaky crime that's nearly impossible to detect. That's what makes it so effective and keeps skimmers in operation.

Follow the handy tips above to keep thieves from siphoning money off of your accounts.

The best way to protect against identity theft is to take proactive steps to reduce your exposure to possible theft and diligently monitor your credit file. While these steps can be done for free, we recommend some type of identity theft protection which includes theft insurance. Many of us don't have the time or energy to regularly check our credit history and identity protection services have become increasingly affordable. The identity theft protection industry has really evolved so do your research; the products, services, and approaches vary wildly.


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