Skimming

AAA

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.

INVESTOPEDIA EXPLAINS '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. Bait Record

    An internal control used in accounting to detect fraud and improper ...
  2. Credit Report

    A detailed report of an individual's credit history prepared ...
  3. Phishing

    A method of identity theft carried out through the creation of ...
  4. Identity Theft

    The crime of obtaining the personal or financial information ...
  5. Deceased Alert

    A notification on a person's credit report that alerts credit ...
  6. Spoofing

    A type of deception where an intruder attempts to gain unauthorized ...
RELATED FAQS
  1. 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 ...
Related Articles
  1. Insurance

    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.
  2. Credit & Loans

    The Importance Of Your Credit Rating

    A great starting point for learning what a credit score is, how it is calculated and why it is so important.
  3. Savings

    Which Are The Best Credit Cards To Take To China?

    Credit cards are now much more widely accepted in China – and one issuer leads the pack, due to its deal with China UnionPay, the Chinese bankcard network.
  4. Credit & Loans

    Chase Sapphire Preferred Vs. AmEx Platinum

    Chase Sapphire Preferred has many rewards and is much cheaper. Is American Express Platinum worth its premium price? That depends.
  5. Credit & Loans

    How to Challenge & Win A Credit Card Dispute

    Found an error on your credit card statement? Five strategies to persuade the card issuer to fix it in your favor.
  6. Credit & Loans

    Review: Barclaycard Rewards MasterCard

    If you're looking for a rewards card and you have an average credit score, this one's worth investigating.
  7. Savings

    Avoid Credit Card Rewards Devaluation At All Cost!

    If you don't know how to redeem your rewards points, we'll show you the easiest way to avoid rewards devaluation this year.
  8. Credit & Loans

    Which Credit Cards Are Best In Europe?

    These cards avoid the main credit issues facing U.S. travelers to Europe – foreign transaction fees that make purchases more costly and no EMV chips.
  9. Credit & Loans

    Review: Discover Credit Cards

    Discover it cards still offer generous rewards and no annual fee. But how generous depends on which card you end up with, and what your credit score is.
  10. Credit & Loans

    Review: Old Navy Credit Cards Costs & Benefits

    If Old Navy is your favorite store, here's the lowdown on its two credit cards. Interest rates are high, but rewards are good at all Gap-owned stores.

You May Also Like

Hot Definitions
  1. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  2. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  3. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  4. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  5. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  6. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
Trading Center