Florida Consumer E-Newsletter
September 2007
Charles H. Bronson
Commissioner
Download PDF version [733K PDF]
A Message from the Commissioner
Dear Friends:
When paying for a meal at your favorite restaurant, most consumers don’t give a second thought to pulling out their credit card or bank card and handing it over to the waiter or waitress. In fact, this has become the preferred method of payment for the majority of restaurant patrons. Unfortunately, identity thieves have been very adept at recognizing this trend as an opportunity to garner valuable information through a tactic known as “skimming”.
Billions of dollars are lost annually due to credit card fraud. Skimming is a problem not just in the United States, but globally. The perpetrators of this crime are able to get your account information using a number of different methods. Often the skimmer isn’t even the end-user of the data that is collected. Instead, he or she opts to sell the data to a third party. It is this person who then uses the data to commit any number of fraudulent acts for their own monetary gain.
Skimming is simply another form of identity theft. According to a recent report from the Federal Trade Commission (FTC), Florida ranked fifth in the nation in the number of victims of identity theft, totaling 17,780. If you feel that yourself or someone you know may have been subject to this type of activity, remember, we're here for you. Our consumer hotline, calling within Florida 1-800-HELP-FLA (435-7352), outside of Florida 850-488-2221 or en Español 1-800-FL-AYUDA (352-9832), will answer any consumer related questions you may have or direct you to the most appropriate resource for assistance. Remember... consumer education is the best defense against fraud and deception.
Sincerely,
Skimming is a high tech method whereby thieves use electronic devices to capture and store your personal or account information from a credit card, driver’s license, or even a passport. The devices that are used to “skim” the desired data are readily available on the internet to almost anyone, and range in price from $50 to $200, depending on their level of sophistication.
How do they do it?
Skimmers can be quite resourceful. The most common method is the use of a personal skimmer that a waiter or waitress will typically conceal in their apron. When they take possession of your card, they usually go to an off-stage area to process the sale. The card is then swiped through the restaurant’s automated payment terminal, and while waiting for the authorization and receipt to print, it is again discretely swiped through the personal skimmer hidden in their apron. Typically the storage space on one of these devices is approximately 100 account numbers and most are equipped with a button that allows the user to quickly delete or erase all of the information that might link them to the crime in a single touch.
Another method of illegally harvesting your personal data is when the thieves actually attach a skimming device to an ATM or a gas pump. The skimmers are able to gather information such as your name, address, telephone number, card number, credit limit and PIN number which is encoded in the magnetic stripe on the back of your card. A dishonest employee can make a substantial profit by selling the data for a flat fee, or for between $25 and $75 per account number.
What are RFID Credit Cards?
Traditional credit cards require visual access or direct physical contact to retrieve information such as the card-holder’s name and account number. Recently, some companies have begun using RFID (Radio Frequency Identifier) and smart card technology which requires no actual contact in order to transmit this same information. Instead, each card contains a tiny wireless computer chip and antenna that is energized and interrogated by a reader. As many as 20 million of these RFID credit cards and 150,000 vendor readers have already been distributed in the U.S., and according to Visa USA, “This has been the fastest acceptance of new payment technology in the history of the industry.”
Credit card companies offering RFID-enabled cards are quick to tout that their information is safeguarded by sophisticated cryptography. Unfortunately, some recent studies have indicated that data is able to be lifted from these cards with almost alarming ease. Remembering that no physical contact is necessary for transmission to take place, tests were conducted with commercially available skimmers where information was able to be retrieved from distances as great as 30 and 70 feet. With the right technology, someone could potentially walk into a crowded room and fill one of these devices with the personal data of everyone in possession of an unprotected RFID credit card. In this instance, no one would even be aware that their identity had been stolen.
How can I protect myself?
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Use cash when able to do so.
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Try to keep an eye on your credit card at all times, if possible.
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Retrieve your credit card immediately after every transaction.
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Keep your receipts.
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Review your account statements carefully, and notify your financial institution immediately of any discrepancies.
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Be on the lookout for portable skimming devices.
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When using RFID credit cards, purchase a “shield” (Faraday Cage) for the card or use a Scanner-Proof Wallet.
Additional Resources
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The links below are for your information only. The goal of the Division of Consumer Services is to provide additional information to consumers. The Florida Department of Agriculture and Consumer Services does not review or confirm these sites for accuracy.
Wikipedia
The fraud begins with either the theft of the physical card or the compromise of the account information. The compromise can occur by many common routes, including something as simple as a store clerk copying sales receipts.
About.com
Skimming is a hi-tech method by which thieves capture your personal or account information from your credit card, drivers license, or even passport.
