Credit and debit card skimming remains a common way for criminals to steal payment information. Skimmers are often hidden on or inside card readers at gas pumps, ATMs, checkout terminals, or other payment devices. When a consumer swipes a card, the skimmer may capture information from the card’s magnetic stripe, potentially allowing criminals to make fraudulent purchases or create counterfeit cards.
One simple way to reduce this risk is to use a mobile wallet, such as Google Wallet, Apple Pay, or Samsung Wallet, whenever possible.
Mobile wallets do not transmit your actual card number to the merchant in the same way a physical card swipe does. Instead, they use a security process called “tokenization.” This means the payment terminal receives a substitute number, or token, rather than your real credit or debit card number. Even if a criminal device is present, the information available from a mobile wallet transaction is far less useful than the data captured from a traditional card swipe.
Mobile wallets also add another layer of protection because they generally require you to unlock or authenticate your phone before paying. Depending on your device, that may mean using a passcode, fingerprint, or facial recognition.
This does not mean mobile wallets eliminate every risk. Consumers should still be alert when using ATMs, gas pumps, and payment terminals. Avoid machines that look damaged, loose, or unusual, and continue to monitor your bank and credit card statements for unauthorized activity. But when tap-to-pay is available, using a mobile wallet is often a safer choice than swiping a physical card.
The same idea can apply in restaurants and other service settings. If a server brings a handheld terminal to your table, paying with a mobile wallet can be safer than handing over your card and letting it leave your sight.
For online purchases, mobile wallets may help when available, but they do not protect against every type of online fraud. Some credit card issuers also offer virtual or temporary card numbers for online shopping, which can provide added protection.
The bottom line: when you have the option, tap instead of swipe. Using a mobile wallet is a simple habit that can help protect your payment information and reduce your risk of card skimming.
