PANAMA CITY — For most, an unexpected loss of hundreds or thousands of dollars from their bank account can be disastrous.
Though most banks insure against fraud for the full amount stolen, fraud investigators with the Bay County Sheriff’s Office said a few simple preventive measures can be taken to ensure people are not put in that position.
“Even though most banks will reimburse the full amount, that can take as much as 10 days,” said Paul Vecker, BCSO criminal investigator. “Most people don’t have that kind of time to wait. They need money in order to survive.”
Debit card theft and fraud is a constantly evolving form of crime. Criminals create new scams, or technological innovations allow a new approach to stealing card information, and law enforcement races to create new means of detection and prevention.
Because of that, law enforcement officials in Bay County and private businesses meet once every three months as part of their “FIRST” program. The Financial Institutions and Retailers Stopping Theft (FIRST) program meets at BCSO headquarters to exchange tips on preventing the newest forms of card fraud and business owners can inform law enforcement on the latest trends in scams.
Businesses can contact investigators through BCSO to receive notifications from FIRST. A physical business address, phone number and email account are required to prevent card thieves from receiving law enforcement tips.
In instances of card fraud, criminal investigators with the BCSO advise, anyone who notices a sudden amount of money missing from their bank account should cancel the card immediately and then file a police report — even if the amount taken is only $1.
Those are likely online buyers of card information testing whether the victim’s card is good. And if it’s not reported immediately, that information could be making its way along what criminal investigators call the “I-10 shuffle” — a notorious route card thieves travel to remain unrecognized at retailers from South Florida to Texas.
“There are organized groups who buy card numbers off the Internet, download all the card information on a laptop and send out a team with all the card numbers,” said investigator Craig Romans. “Unfortunately we are right off the I-10.”
Debit and credit cards store cardholders’ banking information on the card’s back magnetic strip. That information can be used with or without a personal identification number (PIN) and is typically stolen in three major ways: soliciting the information online, rooting for physical documents in mailboxes or trash cans and acquiring the information in person with “skimmers.”
In Florida’s Panhandle, skimming isn’t a prevalent trend. It is mostly a problem in larger metropolitan areas like Tampa, Orlando or Miami-Dade, Romans said.
A skimmer is small enough to fit in a person’s palm. It also can be modified to allow purchases on gas pumps or other outdoor card machines to be processed while covertly storing the information. ATMs in private businesses and outdoor gas pumps can be fixed with these devices with or without the businesses owner’s consent.
“It still goes through, but the card’s information is being copied twice,” Romans said. “Once for the bad guy and the other one is to actually process the transactions.”
A skimmer can store thousands of different cards’ information to be sold or transferred onto a gift card or another credit card with the use of an encoder. Restaurants, fast-food drive-throughs and any other places where the card leaves the cardholder’s sight are susceptible to skimming.
“You could take another person’s information and put it on your debit card,” Romans said. “That way even if they try to ID you, your debit and ID will match up. But little do they know the information is not yours.”
There are some limitations to a criminal not having a PIN to complement the card’s information. Most banks have thresholds on the amount a purchase can be without a PIN or the amount of cash that can be withdrawn. However, in some cases, criminals have set up pinhole cameras facing the pin pad of gas pumps or ATMs to collect PINs along with card information collected by a skimmer.
Best practices
The best way to prevent Internet fraud is to never give your card information to an unsecured website, investigators said. Sometimes a tiny icon of a padlock appears to symbolize a higher level of security to transmit data. This icon is not a guarantee of a secure site but provides some assurance.
Physical documents like credit card applications, bank statements or anything else containing personal information should be shredded. Incoming documents with sensitive information should be collected from the mailbox immediately, and BCSO suggested delivering outgoing sensitive documents directly to the post office.
“That upturned red flag is like a beacon for card thieves,” Vecker said.
Skimming can be prevented by never losing sight of the card. Use cash in any situation where the card would be handed over. Never withdraw money from ATMs in businesses other than banks.
“Banks have the most secure ATMs,” Vecker said. “They don’t shake around or move, and they are not owned by private retailers.”
Officers also suggest never using a card at gas stations; use cash when possible.
If using a card is unavoidable, ironically, one of the best ways criminal investigators suggested to reclaim stolen money in a timely manner is to use credit cards solely.
“A credit card is the bank’s money. A debit card is your money,” Vecker said. “If someone compromises your credit card, the bank will wipe it right off. With a debit card, they will reimburse you; you just have to jump through several hoops.”
Tips from the officials
- Never hand your debit or credit card to anyone. At fast-food drive-throughs, restaurants or any other place, you could lose sight of your card, use cash.
- Do not use ATMs in places other than banks.
- Do not use debit or credit cards at gas stations.
Tools of the trade
- Skimmer — Reads information off magnetic strips of credit or debit cards and can store thousands of cards’ information.
- Reader — Reads information on the back of a card for comparison to info on front of card.
- Encoder — Places information collected by a skimmer from one card onto the magnetic strip of another card.