Skimming

DEFINITION of 'Skimming'

An electronic method of capturing a victim's personal information used by identity thieves. The skimmer is a small device that scans a credit card and stores the information contained in the magnetic strip. Skimming can take place during a legitimate transaction at a business.

BREAKING DOWN 'Skimming'

Skimming can occur easily in a restaurant because your card is taken away when the bill is being settled. If your server is a skimming identity thief, he or she will, before giving the card back to you, scan the credit card with a hand-held electronic device, which takes only seconds. The electronically captured information is then used to by the thief or sold to other criminals.

RELATED TERMS
  1. Jitter

    An anti-skimming technique that distorts the readout of the magnetic ...
  2. Price Skimming

    A product pricing strategy by which a firm charges the highest ...
  3. Card Reader

    A device that can decode the information contained in a credit ...
  4. Secure Electronic Transaction - ...

    A form of protocol for electronic credit card payments. As the ...
  5. Credit Card Dump

    The unauthorized copying of all the information contained in ...
  6. Carding Forum

    A website dedicated to the sharing of stolen credit card numbers. ...
Related Articles
  1. Investing

    How Price Skimming Works

    Price skimming is a strategy that unveils a product at the highest price customers will initially pay for it.
  2. Personal Finance

    Identity Theft: How To Avoid It

    Don't be a victim of this disturbing crime. Get insight into how perpetrators commit this form of fraud.
  3. Managing Wealth

    Credit Card Breach: How To Stay Safe

    You learn that credit card numbers have been stolen from a store you use. How to protect yourself in general – and what to do if you learn you're a victim.
  4. Personal Finance

    What Is The New Credit Card Chip Good For?

    Under current U.S. credit card requirements, credit card issuers are required to issue chip cards as of October 1, 2015. Instead of swiping your card as you do now, you will slide the card into ...
  5. Investing

    The Evolution Of Credit Card Security

    With the increase in credit and debit card fraud, these measures have been taken to ensure your financial security.
  6. Investing

    Whose Fault Is Identity Theft?

    You've been so careful, so how did they get your information? Who is really to blame for your identity being stolen?
  7. Personal Finance

    6 New Credit Scams To Watch Out For

    It seems that everyone has their hand in your pocket these days. Learn how to protect yourself against these financial scams.
  8. Investing

    Avoid Becoming An Identity Thief's Next Victim

    Use these 7 techniques to keep yourself under the radar and out of the way of identity thieves.
  9. Investing

    5 Overlooked Places Where Your Identity Can Be Stolen

    Identity theft affects many Americans, and are often caught off guard. These are 5 places thieves target.
  10. Personal Finance

    The Pros And Cons Of Small Business Credit Cards

    Business owners have many financial tools at their disposal. Should a credit card be one of them?
RELATED FAQS
  1. What are the differences between debit cards and credit cards?

    Learn how the major difference between a debit card and a credit card is where the money comes from when a customer makes ... Read Answer >>
  2. Why do credit card companies calculate revenue splits in terms of basis points?

    Discover how revenue splitting works and how credit card companies are able to utilize basis points in revenue splits to ... Read Answer >>
  3. How do secured credit cards help me build my credit score?

    Find out how secured credit cards function and why they can be very useful for those looking to build or rebuild their credit ... Read Answer >>
  4. Am I responsible for fraudulent charges on my credit card?

    In the event that your credit card is stolen in the United States, federal law limits the liability of card holders to $5 ... Read Answer >>
  5. Where are secured credit cards accepted?

    Repair a damaged credit history or establish one by opening a secured credit card account with a collateral deposit into ... Read Answer >>
  6. Why are EMV cards more secure than traditional debit and credit cards?

    Learn about EMV chip technology for debit and credit cards. Explore different transactions where EMV chips making paying ... Read Answer >>
Hot Definitions
  1. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  2. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  3. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  4. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  5. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  6. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
Trading Center