• TABLE OF CONTENTS •
What is Card Shimming?
Card Shimming vs. Card Skimming
What are CVVs?
Why Cards are Skimmed
Why Cards are Shimmed
Why Card Shimming is a Bigger Problem than Card Skimming
How to Protect Yourself from Card Shimming
Traditionally, “skimming” meant secretly taking small amounts of money from a larger amount of money, such as taking a couple of dollars from the cash register when the boss wasn’t looking. But today, skimming colloquially refers to card skimming.
Good news from the front in the battle against identity theft! Well, somewhat good news. With an asterisk attached. The latest study conducted by Javelin Strategy & Research, a financial services sector consultancy, shows that after years of steady growth in number of victims and the dollar amount of losses, 2010 marked the first year identity fraud has decreased. But the picture is not all rosy: the average out-of-pocket cost for consumers has actually spiked up dramatically. This is not at all good news for retailers and financial institutions, as the newly-pinched victims will no doubt take out some of the frustration on them.
It is always a treat to hear from actual identity thieves: understandably they are not often forthcoming on their criminal activities. Dan DeFelippi operated unrestrained for nearly half a decade, starting from college-years dabbling in fake IDs, before getting caught by a perceptive Best Buy store manager. Facing eight years in prison, he made a deal with the government to pay back $200,000 and join the Secret Service to help spot credit card fraud perpetrated by thieves like him. In an interview with CreditCards.com, DeFelippi recounted his adventures in fraud, and the important lessons we should take away form his experience.