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What is skimming?

Skimming is a method used by criminals to capture data from the magnetic stripe on the back of a card and the data on the magnetic stripe of a legitimate card is copied to a storage device and later encoded on another plastic with a magnetic stripe.

It has essentially duplicated legitimate card data that can be used by a criminal to make fraudulent purchases. This can occur when a waiter takes your credit card to run it on their terminal or a skimming device can be installed on an unmanned gas pump or ATM machine. Chip processing will greatly inhibit skimming.