• New credit, debit card scam targets chip card readers

    By: Greg Coy


    A new warning is coming from the Better Business Bureau about a different method crooks are using to steal information from your credit or debit card. 

    It is called “shimming” and having a chip card offers some protection but not enough.  

    It can cause problems because people love to use either their credit or debit cards, and as many as 2.3 million stores have the device for cards with the security chip.  

    "I use it for everyday things, food, groceries, gas," said student Lietza Ortega.

    According to credit card company VISA, counterfeit fraud dropped 58 percent from 2017 to 2018 because of the EMV chip.  

    Just when you thought it was unnecessary to look over your shoulder, the BBB of the Mid-South warns the crooks have not rested and created the new method.  

    Download the FOX13 Memphis app to receive alerts from breaking news in your neighborhood.


    Trending stories:

    Randy Hutchinson of the BBB described this new criminal work around by crooks to get access to credit and debit card information.  

    "They put a little reader inside the slot that you insert your card in the credit card terminal and it reads the information in the chip," said Hutchinson. 

    That gets enough information to create a bogus card and make online purchases. 

    "They can't actually create another chip card because they haven't cracked the chip yet," Hutchinson said.

    How often does shimming happen?  Industry data is not readily available.  

    Hutchinson said consumers should be weary when their credit or debit card gets stuck in the machine longer than expected and the prompts on the screen take a while to appear.  

    He said when that happens, consumers should call their banks to let them know they may have been "shimmed."

    Next Up: