Cases of “card skimming” have been increasing in the U.S., according to FICO, and the discovery of five card skimmers at North Carolina Walmart stores adds to the pile.
During the first half of last year, FICO found a year-over-year increase in credit card compromise events of 759%, up from 548% in the first quarter. In North Carolina, around 250 people have had their benefits stolen due to the card skimmers, WFMY reported, citing the North Carolina Department of Health and Human Services.
“The state is still working with the federal government to find out if the stolen benefits will be reimbursed,” said the outlet.
To steal card holder information through card skimming, criminals will place a device called a skimmer on card readers, FICO explained. These skimmers can pop up wherever there is a card reader, including ATM machines and self-checkout terminals.
“Often thieves will put a false front on an ATM, gas pump or point-of-sale (POS) terminal, which reads and records the information on the card’s magnetic strip,” said FICO. “They can also use small inserts in the card reader slot, which are incredibly difficult to detect.”
Additionally, they can put pinhole spy cameras near the reader to record people typing in their PIN numbers.
WFMY News in North Carolina said it learned of three card skimmers at two Greensboro Walmart stores Thursday. So far, five have been found in Guilford County Walmart stores. All were installed Nov. 18, shortly before Black Friday.
Greensboro Police Department Detective Joseph Harrill said the devices are Bluetooth enabled. In order to collect the stolen information, the theives would have to go back into the stores to download it.
“One of the most insidious aspects of skimming fraud is that a transaction at a compromised location usually goes through without a hitch,” said FICO. “The unsuspecting consumer has given their financial details to a criminal, but typically won’t notice anything amiss until fraudulent charges start showing up, or the money in a checking or savings account disappears. And by then, it’s usually too late.”
Data from FICO shows that more than half (53%) of skimming incidents last year occurred in California, with another 23% happening in New York, Pennsylvania and Maryland. Most (63%) compromises happened at a single brand convenience store and 20% occurred at a branch ATM.
Although the actual skimmers may be difficult to detect, card skimming fraud will often be detected quickly, with 54% found within two weeks of the compromise.
“While it’s not quite smash-and-grab, the speed with which fraud happens after a card gets compromised shows that criminals know they have a limited window to get away with using the stolen information,” said FICO.
Greensboro Police “say they’re confident they’ll find the people who placed these skimmers onto registers,” per WFMY.
Walmart also said they have put additional security measures in place, including daily register inspections, said the outlet. Anyone who notices something suspicious that may be related to card skimming should contact the police, the outlet added.
Consumers can protect themselves against card skimming fraud by covering up the keypad while they type in their PIN. According to FICO, thieves need the PIN to unlock the card data. Protection tips are also available via the Federal Bureau of Investigation.
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