Shimming Scam Targets Cards With Chip Technology

Scammers have found a way to steal payment information from debit or credit cards equipped with the new chip technology.

Upper Cumberland Better Business Bureau Branch Manager Marty Donnelly said it’s called a shimming scam.

“It’s a paper-thin card sized device that has a microchip and flash storage in it,” Donnelly said. “They put it into the slot where you enter the chip side of your card and it copies your credit or debit card payment information.

Donnelly said the scammer will return with a special card that collects the stolen information.

It’s very similar to the skimming scam, but Donnelly said skimming devices do not work on debit or credit cards with chip technology.

The skimming scam involved scammers inserting a device into ATMs or other terminals to harvest your payment information as you swipe your credit or debit card.

To protect yourself from the shimming scam, Donnelly said you should keep a close eye on accounts and to report any suspicious activity.

Donnelly said you should also be weary if your card gets stuck in the chip reader. If the reader seems to have a tighter than normal grip on your card, there could be a shim inside. You may want to cancel your transaction and notify the business.

Contactless payment methods are not vulnerable to shimming. You can try using “tap-and-go” features on your credit card instead of swiping or inserting your card.