Skimming

Earlier this week, while watching the Today Show I heard a story about why it may not be as safe as you think to use your credit or debit card at a restaurant. Apparently, waiters have been known to take your card for payment and after swiping it through the register, they swipe it through a small device that then captures your 16-digit account number, expiration date, and name. They later download all of this information to a hotel key (which we all know is similar to a credit card). The interesting part is...who would notice this small device next to a restaurant register? Practically no one...with all the wires and chaos, no one is likely to wonder what this is or why it's there.

They skimmed the producer's credit card and then proceeded to shop at various retailers with no problems at all. Some stores did ask for ID, but the man presented his ID and credit card (which matched, of course) instead of the hotel key card he had just swiped with the producers information on it. So in essence, a thief would get away scott-free from a shopping spree with your credit or debit card. Interesting and scary, huh? Yeah...I thought so too.

So what can you do? The gentleman who was presenting the story advised against using your debit card while out at restaurants, gas stations, etc. since they offer you less protection in situations like this and the thief could drain all your money, leaving you with tons of overdraft fees and no money to pay your bills. Instead he suggested using a credit card, one with a low limit, say...$300-$500, that way if your information is stolen, the thief can only do so much damage and you have more protection through the credit card company.

Now I don't know about you...but that sure seems like a lot of work. Keeping your money safe is becoming more and more difficult. Maybe you could pay in cash as well...and gas stations are offering discounts for cash these days...well they were at least, I'm not sure now since gas prices have fallen so drastically. What else could be done in order to help alleviate skimming?

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