CREDIT CARD SKIMMING BY DAN HARPOOL PRESIDENT AND CEO COMPLETE COMPUTING, INC

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1 CREDIT CARD SKIMMING BY DAN HARPOOL PRESIDENT AND CEO COMPLETE COMPUTING, INC HOST OF THE COMPLETE COMPUTING RADIO SHOW ON KARN FM AND THE ARKANSAS RADIO NETWORK ADJUNCT PROFESSOR OF MANAGEMENT AT THE UNIVERSITY OF ARKANSAS LITTLE ROCK

2 PRESENTATION CONTENTS Credit Card Skimming Statistics Credit Card Skimming Technology Credit Card Skimmer Examples Detecting and Preventing Credit Card Skimming Questions

3 CREDIT CARD SKIMMING NUMBERS FICO (Fair, Isaac Corporation) says credit card skimming is up 546% since Compromised credit and debit cards at U. S. ATM s rose 70% in 2016 according to FICO (Fair, Isaac Corporation) Skimming devices are normally attached to ATM s for 24 hours to avoid detection and many skimmers have limited memory. Successful ATM skimming requires a skimmer and camera to capture PIN numbers. However, credit card skimming technology and techniques continue to evolve including the use of Wi-Fi and cellular technology.

4 CREDIT CARD SKIMMING AFFECTS BUSINESSES AND INDIVIDUALS 46% of Americans have been victims of credit card skimming in the past 5 years. Nilson report says worldwide credit card fraud losses were $24.71 billion in % of this fraud occurs in the United States By a large margin the majority of credit card loss occurs online or credit-card-not present. The average loss per incident is $1,343

5 CRIMINAL RINGS ARE BEHIND LARGE SCALE CREDIT CARD SKIMMING FRAUD In Miami, four Romanians charged with skimming devices on ATM s throughout Florida. In Chicago, a Serbian national was convicted for trying to purchase credit cards skimmers. Similar crimes have been reported in all fifty states. There are amateur and professional criminals involving in credit card skimming. Also, very likely state actors are involved in some countries.

6 HOW MOST CREDIT CARD SKIMMING WORKS

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8 HOW BANKS AND MERCHANTS CAN DETECT AND PREVENT CREDIT CARD SKIMMING 1. Keep track of each terminal s location and serial number. 2. Hire reputable companies to repair your terminals and other credit card devices. Inspect your ATM s and other credit card devices on a regular basis. 3. Train your employees to examine terminals for skimmers and suspicious behavior. Show your employees examples of skimmers. Take all customer reports seriously.

9 HOW BANKS AND MERCHANTS CAN DETECT AND PREVENT CREDIT CARD SKIMMING 4. Switch to EMV, (Europay, MasterCard and Visa) terminals which makes skimming more difficult. Especially if the card has a chip and requires a PIN. 5. If you think you are the victim of skimming, call the police and don t touch the terminal. Also reach out to your processor and the credit card company or other financial company involved.

10 SPOTTING PIN CAPTURING CAMERAS

11 MORE SPECIFIC TIPS REGARDING PROTECTING ATM S 1. Look around the ATM for places where a scammer could hide a camera near the ATM. 2. Take a close look at the keypad. Check for a fake overlay on top of the actual keypad. 3. Look over the entire ATM area for parts that don t match in styling, color or material. Look for things stick out around the credit card slot.

12 MORE SPECIFIC TIPS REGARDING PROTECTING ATM S 4. Jiggle the credit card reader to see if it moves. 5. Have specific people assigned to check the ATM s. Especially after weekends and holidays.

13 HOW CONSUMERS CAN DETECT AND HELP AVOID CREDIT CARD SKIMMING 1. Go inside to pay or withdraw money. Especially if it is a location you don t normally use or you are out of town. 2. Check out the location. Thieves like locations away from the watchful eye of employees. 3. When entering a PIN number block with the view of they keypad with your other hand.

14 HOW CONSUMERS CAN DETECT AND HELP AVOID CREDIT CARD SKIMMING 4. Inspect the card reader SCAN S: Scan the area for hidden cameras C: Compare the card reader and keypad to the rest of the machine. The colors and styles should match. The graphics should be aligned and unobscured. A: Assess for obvious signs of tampering. Panels may be broken, dented, scratched or security seals may be broken. N: Nudge the card reader and keypad. Card skimmers and fake keypads are meant to be removed. So if they feel loose, you may have spotted a skimmer.

15 HOW CONSUMERS CAN DETECT AND HELP AVOID CREDIT CARD SKIMMING 5. Use the right type of card. Use a credit or debit card with a chip. If a thief skims you debit card it can be a pathway into draining accounts. Studies indicate chip cards that also require a PIN number has reduced credit card fraud. 6. Monitor your accounts regularly. Monthly is not frequent enough in today s world and set alerts on your accounts if that service is available. 7. Report any suspicious activity to your credit card company or financial institution immediately.

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35 COMPREHENSIVE CYBERSECURITY IS PART OF PROTECTING AGAINST CREDIT CARD SKIMMERS State of the Art firewall with Advanced Threat Protection Comprehensive virus and malware protection Keep operating systems and all software up to date SPAM and web filtering Train users on their role in preventing cybersecurity attacks

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37 The Complete Computing Radio Show Hosted by Dan Harpool Saturdays from 8:00 to 9:00 am KARN FM On the Arkansas Radio Network iheart Radio & Podcasts on itunes & TuneIn Computer & Technology news you need! Your computer questions answered & problems solved at or 1 (866) outside of Little Rock. thecompletecomputingshow

38 QUESTIONS?