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Credit cards with chips make it harder for scammers to steal your payment information, so con artists quickly adapted and created a technique called "shimming."
How the scam works
Remember skimming? That's the con where scammers inserted a device into ATMs or other terminals, harvesting your payment information as you swipe your credit or debit card. Scammers succeeded with this tactic for a while, but skimmers don't work for cards with newer chip technology. In addition, card skimmers are easy to notice because they are often bulky or wobbly.
Con artists' way to steal payment information off a chip is called "shimming." Scammers insert a shim -- a paper-thin, card-sized device with an embedded microchip and flash storage -- into the slot where you enter the chip side of your credit or debit cart. When you insert your card at a gas pump, ATM, or another card reader, it copies and saves your payment information. Then, scammers return with a special card that collects the stolen information, such as your PIN and card number. They use this information to make purchases with your account information.
Protect yourself from shimming
- Keep a close eye on your bank and credit accounts. Check your online statements regularly to make sure there are no suspicious charges. If you see any, report them to your bank or credit card company immediately. Use the customer service number on the back of the card to be sure you are reaching the real company and not an imposter. Make sure you contact the bank, merchant and your card issuer if you ever suspect your card has been compromised.
- Be wary if your card gets stuck in a chip reader. If the reader seems to have a tighter-than-normal grip on your card, there could be a shim inside. You may want to cancel your transaction and notify the business.
- Use contactless payment methods. Contactless payment methods are not vulnerable to shimming. Try using "tap-and-go" features on your credit card instead of swiping or inserting your card. You can also use contactless mobile services such as Apple Pay or Samsung Pay to tap and pay.
- Go inside to a teller to withdraw cash at a bank.
- Use ATMs in banks rather than more vulnerable stand-alone machines.
- Cover the keypad with your hand when entering your PIN.
- Don’t proceed if you feel resistance when the card is inserted.
For more information
Read more about credit card scams at BBB.org/ScamTips.
If you've fallen victim to this type of scam, help others avoid being scammed by filing a report with BBB.org/ScamTracker. Learn more about specific kinds of scams and how to avoid them at BBB.org/ScamTips.
BBB Serving Atlanta contributed to this tip.