Recently, I was on my way to dinner when I received a phone call from the fraud department. A phone call that is sure to ruin anyone's day.
Eight hundred dollars of fraud on my debit card in a city over four hundred miles from me.
Like everyone else would, I canceled my debit card and got a new one. Expecting everything to be settled after I was reimbursed my money, I went about my week.
Not long after, I got another call from the fraud department.
Another four hundred dollars of fraud, but this time, on my credit card. Just for the record, this credit card did have a chip, a chip with the sole purpose of preventing fraud.
At this point, I was too furious to fully grasp how unusual the situation was. Both my cards compromised within a seven-day time frame? That is far from coincidence.
I wish I would have known what I know today when all of this originally started. That is why I decided to tell my story.
Digital Pickpocketing
With digital pickpocketing, criminals use radio frequency identification (RFID) wireless communication to steal credit and debit card information. The RFID reader can either be bought online or easily downloaded through an app. In seconds, the readers have the ability to store all card data if the person is standing close enough, typically only six inches away. From there, all that is needed is a machine to run off duplicates of the card. These machines run at about $300, an alarmingly low price for the amount of money the machine compromises with its product.
So naturally when I contacted the bank to question how both my cards were compromised in such a short time frame, one of the bankers told me I must have been "scanned" by a criminal and even suggested I invest in an aluminum wallet to prevent future scanners from getting my card information. But when I decided to do my own research, I realized this wasn't quite possible.
In order for an RFID reader to successfully scan your card, there must be an RFID chip in the card. Cards with RFID chips transmit all bank details via radio signal, allowing criminals with these readers to pick up on the signal in seconds. And that's the catch - most cards do not have RFID chips in them because banks are well aware of their security risks.
How do I know if my card has an RFID chip?
RFID cards were created so cards would no longer have to be swiped, so if your card promotes something like "wave and go" or "tap and pay", it is likely there is an RFID chip in your card.
Another way to determine if your card has one of these chips is by an antenna symbol (similar to a wifi symbol) located on the front or back of the card.
EMV chips
Most banks are now switching to EMV chips, which cannot be read by an RFID reader. EMV chip cards are secure because the chip generates a unique code for every transaction. Yet again, another catch: these unique codes can only be created when the specific terminal for EMV chips is used. So for every business that has not yet invested in the new card terminals, the card must be manually swiped just like before. As a result, the bar code on the back of the card can be skimmed and replicated when swiped normally. Therefore, cards with EMV chips are no more secure than a regular card if they are not inserted in their special terminal at checkout.
Safety First
If you do not have a card with an RFID chip, the most common ways card numbers are stolen include skimmers and online shopping. Never use public wifi when making an online purchase and make sure the website begins with "https" instead of "http". If it begins with "https", the site is secured by an SSL certificate and should also have a lock icon located by the site name in the search bar.
Overall, if fraud does happen on your account, make sure to always report it to the police and say YES when they ask if you want to press charges if the suspect is found. Odds are the person behind the fraud has done this to numerous people and the cops can only find them and stop them with your help.
Because of my unique situation where both cards were compromised in a week, police suggested I freeze my credit and open new accounts with my bank. It is hard to determine what information a criminal might have, so it is always better to be safe rather than sorry.
