Digital pickpockets using smart phones to steal credit cards

No matter how aware you are about safeguarding personal belongings and confidential information, you don't have complete control. Now you need to worry about digital pickpockets swiping your credit card information during your subway commute or when pumping gas at a rest stop.

How Skimmers Operate

RFID technology-operated credit cards require a quick tap to scan, rather than the magnetic swipe traditionally used by cards. The RFID chip emits a constant stream of unencrypted information, which can be picked up by any device equipped to tune into that frequency. Among the information transmitted? Your credit card number and expiration date.

Anyone with a device that picks up radio frequency can scan for nearby RFID devices and obtain the number. Because of rising near field communication or NFC smart phones, a Smartphone can be used to read your credit card data, capture it and transmit it in a store, reports Matt Markovich of Komo News.

Programs like MasterCard's PayPass also aid criminals. PayPass stores credit card information on your phone and you tap into a POS monitor to pay. Since you don't give your card (or any identification) to a clerk, there's no way to verify if you're using your PayPass card or if you wrongfully have someone else's data stored.

Ways to Stay Safe

Although credit card companies have indicated they may begin encrypting data to prevent fraud. The onus falls on you to monitor and protect your identity.

As a first line of defence, make it a habit to review your credit card and bank statements at least once a month. If you see any unusual transactions, contact your Credit Card Company or bank. While reversing charges, the claim process can be lengthy. If skimmers steal your debit card and deplete your bank account, you'll need a loan in the meantime.

An identity protection service provides round-the-clock monitoring against security threats and skimming. Specialists will notify you of any suspicious activity on your card. This service acts as an extra cushion for regularly monitoring your statements.

If you discover your card has an RFID chip, and you don't think you'll use it (or don't want the fear of identity theft), call your credit card company and ask them to send you a card without the RFID technology.