Fraud was already on the rise before COVID-19. According to Investopedia, in 2018 globally there were $28 billion credit card fraudulent transactions alone—with the expectation that the number would increase over the next five years. And that was before the pandemic. As reported by GlobeNewsWire, 86 percent of global online shoppers have fallen prey to identity theft and fraud during 2020. So, there’s no doubt that fraud needs to be taken seriously, and because it’s so hard to catch the electronic thieves, finding ways to stop them without catching them is paramount.
Unfortunately for consumers, there are many ways their identity, financial and personal information can be stolen and used. But, for on-premise shopping, skimming remains the largest card-carrying threat. The fraud is nearly a decade old, but it’s evolved quite a bit.
Today, “skimmers” can take small devices that look exactly like payment terminals so consumers unwittingly swipe their cards with their information quickly picked up by the skimming device. In one day, a skimming device can collect dozens of consumer’s credit or debit card information (including the pin number) to make counterfeit cards. Then the thieves can either sell the cards or use them. Either way, the price of it, without an EMV card reader, falls to the business owner if they don’t have a way to accept EMV payments on their POS.