What Do You Mean By Credit Card Skimming?

Credit card skimming is a kind of credit card fraud wherein the identity of the credit card holder is stolen by way of reading the magnetic strip of the credit card. The information is obtained by passing the card through a hand held device known as a skimmer which copies the information on your credit card like the card number, expiry date and security code which is then used to create a counterfeit card. A card thus created can be used to conduct transactions via the internet or over the phone.

Credit card skimming occurs in situation where the credit card is given to people like for example in a restaurant to tally costs. Cards that are issued along with a smart chip are guaranteed more security as the chip itself cannot be copied though the vital information still remains vulnerable to credit card skimming. The valid card holder often comes to know of the theft only when he is presented with the bills by the credit card company.