What is skimming and how does it work?
Skimming is the process of reading an ATM card's account information from the magnetic strip of the card without the owner's knowledge or authorization.
This illegally obtained information is then used to create duplicate cards that can be used in fraudulent purchase transactions or, more importantly, ATM cash withdrawals. Skimming is immensely popular with criminals because it requires only a minimal investment and gives direct access to large amounts of money.
In order to be able to make and use a duplicate ATM card, the criminal needs to acquire two key pieces of information:
- The bank account information stored in the magnetic strip of the card
- The Personal Identification Number (PIN), the extra layer of security that is needed to actually use the card for purchases or cash withdrawals.
These two key pieces of information are typically acquired in the following ways: