Scammers steal credit card details in ways you never thought of
Cyber criminals and malicious scammers are constantly at work to devise new ways to steal confidential user data. Unfortunately, such attacks are not just restricted to the Internet. A recently discovered spate of attacks enables scammers to steal credit/debit card details and these methods are increasingly carried out in the physical world.
In brief, here are the 5 most common places from where credit/debit card data can be stolen:
- Restaurants and retail stores
- Online shopping portals
- Hacked email accounts
- ATM machines
- Thieves and pickpockets
Restaurants and retail stores
Some scammers have devised ways to tamper with the card readers at retail stores. Malicious smart cards that look like legitimate cards are created and then inserted into the machines to make a payment. However, the machine simply says than an error has occurred and the retail store merchant is unaware of the damage that has been done. When a genuine payment is made with a valid card over the same machine in the future, the details of that card get recorded. Now the scammer revisits the store after a day or two and inserts the fraudulent card into the machine to make another seemingly innocent payment. Details about all the cards that have been inserted in the interim period are now transferred into the malicious card which can be viewed by the scammer via another device.
Online shopping portals
The best online shopping portals mandatorily use secure methods to protect user details. Unsecure portals are susceptible to hackers and can easily lose data to scammers. There have been several instances where major online portals have been breached and card details have been stolen and misused. From a customers perspective it is advisable to be aware of the concept of SSL and security certificates. Additionally, the best Internet security software installed on a machine can also detect fraudulent pages and portals.
Hacked email accounts
Many people receive and pay their credit card bills via email. So if a hacker manages to gain access to an email account, he can cause a lot of trouble. It is imperative to use various tools for email protection like two-factor authentication, strong and unique passwords etc. Mail services like Gmail and Yahoo also offer other methods to check if your account has been hacked into, and these are worth exploring as well.
ATM Machines
Theft of card data from ATM machines is known as ‘skimming’. This is accomplished with the help of simple card reading equipment and a small camera that records an individual when he punches in his PIN. Scammers also use equipment that replicates the magnetic strip of cards. However, various steps can be taken to avoid such attacks and this includes shielding your hand while typing the PIN and being aware of suspicious looking machines.
Thieves and pickpockets
Physical loss of possession of cards is the biggest risk in this scenario. It is advisable to report a card loss to the concerned bank and local authorities as soon as possible. Another noteworthy precaution is to monitor card statements and activity for any signs of malicious activity.
Credit/debit card usage is convenient yet dangerous as scammers have come up with several innovative methods to gain such information. Readers are advised to stay vigilant and follow various safety measures to remain protected.
Brilliantly explained..
Thanks for sharing the information and expertise!
Thank U Rahul for your valuable information.
Gautam Arun
Odisha
This is a good way to steal credit card details from Restaurants and retail stores but this a method or the problem.
How can we(consumers) prevent it from happening ??
Hi Prakram,
Unfortunately, if a card machine is attacked in this manner, it would be impossible to know. Even the merchant would be unaware. It requires the store owners to be more vigilant and this is out of our hands. One option is to use credit cards in stores as less as possible, or to use it only in stores that we trust.
Regards.
Look Rahul,
If the stores are not involved in the scam, where is a question of trusting or not trusting a store? It has to be convencing and serious if it is possible.
Thanks
Shailesh
Its really a helpful information, it should be read by all the persons who are using their credit care carelessly.
Thank you too mutch
the card fraud at retail store…i did not get it..pls explain in detail….
Hi Harsha,
Basically the machine is tampered with malicious software. This steals card information from cards that are inserted in the future.
Regards.
How a card reader will upload a programme through card reader? Are the card reader so badly designed that a software can be installed throgh reader? One need to demonstrate the same in presence of the manufacturer and police in interest of society so that if so it can be corrected.
Dear Rahul it will be great if you take initiative to support your point.
Thanks.
Hi Shailesh,
Card readers are not badly designed but the fact is that every device that works electronically can be made to work in a different manner using various techniques. Unfortunately, attackers come up with innovative ways to target such devices very regularly. In this sense, people can only behave in a reactive manner to such attacks.
Regards.
you are making me nervous…..
I feel like giving up online transactions
Hi Anup,
It is good to simply be aware of such threats. It should not discourage you from carrying out such transactions. Awareness will help in keeping yourself protected.
Regards.
Restaurants and retail stores This method is not possible — I have never seen any POS terminal which can be programmed by a card itself. POS can only be programmed externally and present terminals use highest level encryption system. This can be done by the bank itself. Online shopping portals Presently VBV and MSC 2nd level protection should be used. It is practically impossible to hide a fraud purchase as online purchase records delivery details. Most online payment gateway records IP. Hacked email accounts Hacker only get the card number from the credit card statement, not more than that. So… Read more »
Hi P K Bose,
Thanks for your valuable inputs. Most of your assertions are correct, but such attacks are not impossible. There are many instances where such attacks have actually taken place. It is good that you are aware and protected, but this is not applicable for every individual out there who uses a credit card.
Regards.
how to get it protected ? do you have a solution from your end ?
Hi Raj,
Unfortunately, if a card machine is attacked in this manner, it would be impossible to know. Even the merchant would be unaware. It requires the store owners to be more vigilant and this is out of our hands. One option is to use credit cards in stores as less as possible, or to use it only in stores that we trust.
Regards.
How do you prevent yourself becoming a victim of card data theft at retail stores? This is not explained. How I am defrauded is explained, but how to prevent is not told-which is not a big help.
Hi Vijayakumar,
Unfortunately, if a card machine is attacked in this manner, it would be impossible to know. Even the merchant would be unaware. It requires the store owners to be more vigilant and this is out of our hands. One option is to use credit cards in stores as less as possible, or to use it only in stores that we trust.
Regards.
WHAT SHOULD WE DO IN RESTAURANT AND HOTELS?
Hi Uday,
Unfortunately, if a card machine is attacked in this manner, it would be impossible to know. Even the merchant would be unaware. It requires the store owners to be more vigilant and this is out of our hands. One option is to use credit cards in stores as less as possible, or to use it only in stores that we trust.
Regards.
Thank you for this info. Never really knew about it.
Thank you for the update but what’s the solution? What are the “various safety measures” that we should follow “to remain protected”?
very useful information. thank u so much,
very important update for every cardholder, but can you provide more details and remedies for the ways of getting cheated by the use of a credit or debit card.
very nice anti virus quick heal total security
Thank You…. For Giving the tips about the “Retail Store Card Reader Fraud”….
please provide additional steps to prevent scammers from stealing our credit/debit card data. THANKS !!!
Will you throw some more light about protection of credit/debit cards at retail stores/shopping malls/ restaurants.
Hi Ramesh,
Unfortunately, if a card machine is attacked in this manner, it would be impossible to know. Even the merchant would be unaware. It requires the store owners to be more vigilant and this is out of our hands. One option is to use credit cards in stores as less as possible, or to use it only in stores that we trust.
Regards.
Thank you for the update suggestion what is the solution for the same can you?????????
Hi Raghu,
Unfortunately, if a card machine is attacked in this manner, it would be impossible to know. Even the merchant would be unaware. It requires the store owners to be more vigilant and this is out of our hands. One option is to use credit cards in stores as less as possible, or to use it only in stores that we trust.
Regards.
Thanks for the useful information.
Item new but unknown.
Very valuable information. How to keep check whether scammer / attacker has already swipped fradulent card before us.
Hi Sunil,
Unfortunately, if a card machine is attacked in this manner, it would be impossible to know. Even the merchant would be unaware. It requires the store owners to be more vigilant and this is out of our hands. One option is to use credit cards in stores as less as possible, or to use it only in stores that we trust.
Regards.
i am using quick heal total security,i want to know how much safe i am from all this frauds..
Thanks for providing the updates. But these are not absolutely new.Almost all the card holders know about these but hardly care about. The lesser the use of cards, the better.
How one will prevent “Retail store card reader fraud”…?
Hi Koushik,
Unfortunately, if a card machine is attacked in this manner, it would be impossible to know. Even the merchant would be unaware. It requires the store owners to be more vigilant and this is out of our hands. One option is to use credit cards in stores as less as possible, or to use it only in stores that we trust.
Regards.
Thanks for the valuable information.
Veru very useful info in very simple understandable words. Thanks
Very Good information. We have a Store where many cards are swapped daily. How can Card Data be stores in a Machine ? I am Shocked.
Hi Harish,
Store owners must be vigilant about suspicious error messages that appear on the machine. As of now, this is the only way such software can be embedded so it is advisable to be suspicious if a strange error occurs.
Regards.
I am the victim of online shopping scammers I Purchased a railway ticket from irctc and very next day some one made transactions near about 11 thousands in dollars from London. I complained to the card authorities but they first refused to reverse the amount but later on they reversed the half of that amount rest amount still there. How can I pay when it is not done by me. Please advise.
Hi Harish,
That is a very serious crime against you. We can only advise you to take this matter to the police and legal authorities. Show them the necessary documents and lodge a formal complaint with them.
We wish you all the best.
thnx for this
Nice article. All the symptoms have been clearly explained. But no remedy. What do we do to prevent the hacking at the retail out let ??
Hi Biju,
Unfortunately, if a card machine is attacked in this manner, it would be impossible to know. Even the merchant would be unaware. It requires the store owners to be more vigilant and this is out of our hands. One option is to use credit cards in stores as less as possible, or to use it only in stores that we trust.
Regards.
Be careful, use your credit cards, atm carefully at authentic places.
Useless fellows in every office do keep their eyes vigilant for looking at every persons while logging for mail, easy recharge, personal banking etc. and use /transfer this information in using undue advantage of any persons, even the closest collegues/frineds/cronys.
In this husle-busle of every day busy life We should be vigilant enough to keep a watchful eye whether such caterpillar is near or not. We should be alert enough to not to let any such nasty person using your valuable information for their own luxuries, which they can’t afford.
Thanks for your valuable information, its very clearly explained but there are no explanations given how to be safe and i request you to update this article with those information.
thanks in advance
Hi Raj Naidu,
Unfortunately, if a card machine is attacked in this manner, it would be impossible to know. Even the merchant would be unaware. It requires the store owners to be more vigilant and this is out of our hands. One option is to use credit cards in stores as less as possible, or to use it only in stores that we trust.
Regards.
This is very serious matter.I hope quick heal can help to give early warning in case of such crime is done on line.Regards.
Very informative. Thanks for explaining the methods.
Brilliantly explained..
Thanks for sharing the information and expertise! Thnx sir???????
Regards
ankit verma
frontier agencies pvt.ltd
What precaution can we take to ensure we protect our card from being misused by a retail store, when we hand over our credit card to them?
This we we are at risk everytime we hand ove a card to a restaurent / petrol pump / retail shop.
Hi Vijay,
Unfortunately, there is not much we can do to prevent such attacks. It is advisable to use cash in busy places like a petrol pump. If you must use the card, you should accompany the person swiping the card. Malicious attacks against the reading machine however, are very hard to detect and they require vigilance from the merchants themselves.
Regards.
Thanks for spreading awareness in public.
An article is half written !! No article is full untill it provide full information on subject and how can people get safty mesure on that particular subject.
Do people stop useing credit cards, how many such instance take place do Credit card authority working on it or awer off? such things should be provided.
i appriciate light on hacking.
Hi Pragnesh,
Unfortunately, if a credit card reading machine is compromised, it is very hard to know. While we cannot prevent such attacks, nor can we claim that credit cards should not be used at all, it always helps to be aware of such techniques that hackers use. We will add updates to this post if more information is available. Until then we shall continue providing valuable information like this that a majority of people appreciate and find useful.
Thanks.
You Are Such A Great Guy ,,,,SO Thanks TO Save Us And Give Us This Priceless And So Important Information Sir…
You have shared valuable information.
Do you know what “SKIMMER” is?
Every one having bank debit card must know these points.
No thanks.
Yet another method of hacking credit/debit card is tele market calls from various sources and gather your personal information like dob, address, phone number, spouse name, bank names etc. These informations are gathered over a period by different person and collated.
Plz be careful before parting with any of these information
Thanx buddy..u’v enlightened me.
THX. RAHUL FOR SUCH A VALUABLE ADVISE.
In the case of restaurant retail stores Please confirm if in case the machine is switched off after the fraud card is swiped and restarted then will the data still get transferred after swiping the correct card on re-starting.
Hi Deb,
We cannot say for sure if this will happen. But we should expect the worst and assume that even when the machine is switched off and on again, the malicious software will remain inside.
Regards.
yeah yeah you are right Rahul Sir ji…