What Is Skimming?
Skimming is a method used by identity thieves to capture payment and personal information from a
credit card holder. Several approaches can be used by
fraudsters to procure card information, with the most advanced approach involving a small device called a skimmer that reads the information stored in a card's magnetic strip or microchip.
How Skimming Works
Skimming can occur anytime a cardholder uses an electronic payment card at a
brick-and-mortar location. Fraudsters can obtain information in various ways, and the technology that they use is becoming more sophisticated and challenging to detect.
Skimming allows
identity thieves to capture information from a cardholder that can be used to make fraudulent transactions. Some fraudsters may simply photocopy or take digital photos of information that can be used fraudulently. Other more advanced technologies also exist, such as skimming devices designed for use in many different situations.
At brick-and-mortar locations, a fraudster can use a small skimming device that allows them to swipe a card and obtain information from its magnetic strip. Some skimmers may also include a touchpad that allows the thief to enter a security code.
In simple, it catches data of the cardholders (dumps) usually they occur on gas stations or richer areas