According to the Federal Bureau of Investigation (FBI), credit card data theft is not only a problem in the United States. It is estimated that fraud related to information interception costs financial institutions and consumers over $1 billion annually.
Authorities urge individuals to be vigilant and able to recognize fraudulent devices. Credit card data theft involves placing special devices on payment terminals such as ATMs and gas stations, which capture card information.
Currently, criminals are constantly improving their methods. The biggest issue is fraud related to “skimming” credit card data. Fraudsters install fake card readers with memory chips to store stolen data.
Once the card is inserted into the fake reader, the device scans the card’s magnetic strip and wirelessly transmits the information to the thief. Additionally, a small camera is often installed to record the entered PIN code, giving access to our bank account.
Using the collected data, criminals create counterfeit credit cards to make transactions at the customer’s expense. Some of this stolen information is even sold on the so-called “dark web.”
However, there are several ways to protect our data. One of them is using contactless payment methods such as Apple Pay. This service offers an additional layer of protection.
According to Apple, all data in Apple Pay is encrypted, significantly reducing the risk of fraud. During registration, our device receives an encrypted account number that can only be decoded by our bank. Even Apple does not have access to our actual card number.
When we make a purchase using Apple Pay, we do not use our card number, but an encrypted code assigned only to our device.
Nevertheless, it is important to note that credit card data theft can occur not only through the interception of data from the magnetic strip. Apple Pay eliminates this risk as our actual card details never even reach iCloud.
Although many gas stations still do not accept contactless payments, there are many other ways to avoid credit card data theft. For example, it is always worth paying attention to card readers, checking for any looseness or damage. If suspicious, it is advisable to notify an employee. To further enhance security, cash payments can also be made. Remember that while it is difficult to fully protect ourselves from credit card data theft, there are many ways to reduce the risk of skimming and avoid financial losses.
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