The Latest Scams Circulating the Consumer World. Be warned. Be informed.

April 2007

Card Swipe Scam

A criminal ring has been moving around the country stealing people's debit and credit card numbers and money by installing a small, scanning device on the card swiping machines in check-out lines at retail stores.

How Do Criminals Install the Device?

They either pretend to be technicians fixing the swippers or they work in groups to distract cashiers, allowing time to install a small device on the card-swiping machine.   If the cashier looks away for a few minutes or has to step away from the register, it gives the criminals enough time to install the scanning device.

How Does the Scanning Device Hurt Consumers?

Every time a customer swipes a debit card or a credit card the criminals capture the account number and secret code.   Minutes after the customer completes the transaction, the criminals have pulled hundreds or thousands of dollars out of the victim's checking account.

Oftentimes, the cardholder never knows they've been a victim. Criminals can steal more money from people who use debit cards because it is much harder for the victim to get a bank to credit stolen money to a checking account.  However, with a credit card you have more rights, and you can file a dispute with the bank and get your money back.

Play It Safe

• Use cash
• Take an extra minute to write a check
• Use a credit card and pay it off at the end of the month
• Check your monthly statements for fraudulent charges

Source:  www.clarkhoward.com