Lucky Stores Card Skimming Attack Prompts Awareness

More than 500 Lucky store customers have been victimized in a recent credit and debit card-skimming operation, announced Save Mart Supermarkets on Nov 23, 2011, who operates the Lucky chain.

According to a customer alert on the chain’s website, customers from 24 Bay Area stores have reported fraudulent or attempted fraudulent activities after using card-reading machines in the self-checkout lanes.

Customers who used a credit or debit card in a self-checkout lane at the identified locations during the months of October and November may be compromised.The company said it had learned that card-reading machines in the self-checkout lanes at 20 stores contained data skimming devices. The first tampered card reader was discovered during a regular inspection, the company said.

Law enforcement officials say the devices, which copy credit and debit card information, could be lurking anywhere you scan your card.  Card skimming is the illegal copying of information from the magnetic strips found on credit and debit cards. Card skimming is considered a more direct version of a phishing scam. Store clerks who skim cards may do so by having customers swipe their cards more than once, or by taking the card to another location within the store. Card skimming may also occur when a perpetrator rigs an ATM with a card skimmer. The end result of card skimming is unauthorized access to finances through the technique of illegal copying of debit and credit cards.

 Over the years, card skimming has become more sophisticated and more difficult for cardholders to detect. Card skimmers now employ features such as tiny pinhole cameras to record ATM users' PIN numbers, which can be transmitted along with card data to a remote receiver.

Consumer Education is Key

1. Inspect the ATM – Avoid using ATMs in poorly lit or low trafficked areas. Experts often recommend choosing a bank ATM over standalone ATMs in public places. Look for new or suspiciously placed cameras and unusual signage. Don’t hesitate to walk away and use another ATM if something appears out of the ordinary.
2. Protect your PIN – When entering your PIN, cover the keypad with your other hand to protect your private PIN from any cameras in the vicinity. False keypads placed over the real keypad are also a way scammers get PIN numbers so if the keypad looks different, move on.
3. Be Cautious of All Card Swiping Devices - Criminals can also manipulate credit card swipe machines at gas pumps and retailers. The hand-held card swiping devices which are sometimes left unattended at restaurants, events and other public locations can also be tampered. Take a careful look at any device before swiping your card.
4. Monitor your Statements – Even the most careful person can still fall victim to ATM skimmers so it is important to keep a close eye on your accounts. Look for suspicious charges and particularly the itemized breakdown of charges and debits. - Report Fraud Immediately – Report any fraudulent activity to your bank as soon as you discover it. Consumer protections for debit and credit cards vary but depend largely on when the fraudulent activity is reported.

While ATM theft isn't going to go away, the Global ATM Security Alliance reports that just .0016% of all ATM transactions worldwide are affected by crime or fraud. Additionally, with a little bit of care and attention, you can avoid these scams and keep your money.