Debit Card Fraud
Debit Card Fraud
Debit Card fraud is growing in mass proportions across Canada. ATM machines and Point of Sale Terminals are being compromised with “Skimming equipment”. Skimming equipment is unauthorized copying of electronic data from your debit card. Skimming equipment captures both the card number and PIN then fake cards are reproduced. This equipment can include pin-hole cameras, wireless bluetooth technology, portable card readers, etc.
Sometimes the victim’s bank accounts are completely emptied but, not always. Quite often, the criminals will make subtle withdrawals over a period of time banking on the fact that most people don’t take the time to review their monthly statements. If you ever have that uneasy feeling making a purchase or withdrawing money, trust your instinct, and go elsewhere. Most if not all of the big reputable banks are placing the most advanced security technology on their ATM locations to help prevent this scam. The same cannot be said about private ATM’s, which should be avoided.
Point of Sale, which is another term for either debit card transactions, or Interac seem to be the flavour of the month. Recent news reported that quite a few previously trusted big brand stores, restaurants and gas stations as well as some small independent grocery stores have been targeted by this scam. In most recent cases, the terminals were actually physically compromised with a chip being inserted inside dummy handheld devices. Yes, the whole keypad is switched when the thieves have the opportunity. Either the thieves come back and switch back the original unit to get the information stored on the dummy or they just don't bother if the dummy is setup to send the cardholders number and PIN remotely over a wireless connection using skimming equipment. Why are these terminals so easy to access? Many stores have them fixed to a metal holder but many do not so that they can hand you the unit more easily. Are these inside jobs or are they left unattended that frequently? Does cleaning staff let these criminals in after business hours? Where’s the video surveillance around these terminals? Wouldn’t you think that the banks, debit card company, and business owners have a vested interest in placing more stringent security measures in place to stop this practice immediately? Who should be held responsible for these breaches in security and to the ultimate victims? I cannot answer why this problem keeps occurring but it appears simple as to what should be done. As it stands now, many debit card readers are only attached to a phone line jack similar to your phone jack at home. This needs to change and all readers should be mounted securely and only ever be removed by a qualified technician. Also, there should be encryption software built into each unit so that thieves would have a hard time unscrambling it. Thirdly, every time the unit is unplugged, a silent alarm and log should be activated to the supplier that shows that someone may have attempted a compromise. Business owners must be held responsible for any of their machines being tampered with if they want to offer this convenient service to their customers. If breaches happen more than once at a certain location, then these machines should be removed permanently. Changes will only be made to this system when accountability increases.
As it stands now, the only way to help protect yourself from this crime is to change your PIN on your bankcard very often and review your monthly bank statements diligently. Listen to your gut as well. In some cases, it might be worth your while to use cash instead. This crime is happening all over and it doesn’t seem to be targeting just small-unknown retailers anymore but big brands as well.
Well that's my opinion for today. Stay safe and I hope some of this will help to protect you.
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