From Skimming to Electronic Pickpocketing: The Evolving Threat to Your Plastic Money.....by Gurjot Singh Kaler

As the world embraces the digital age, plastic money—debit and credit cards—has become a central tool for transactions. From roadside stalls to luxury stores, we are swiftly moving toward a cashless economy.While this shift brings speed and convenience, it has also given rise to new forms of cybercrime, particularly ATM skimming and electronic pickpocketing.

Though cards have made life easier by reducing the need to carry cash, the hidden risk is alarming—your card can be cloned, compromised, or misused without ever leaving your pocket. What’s worse, many victims only realize something is wrong after the money is gone.

In many parts of India, ATMs have quietly become the scene of card data thefts. Skimming involves placing a fake device over the genuine Automated Teller Machine (ATM) or Point-of-Sale (POS) card reader.

This counterfeit reader copies the magnetic stripe data from your card. Simultaneously, a hidden camera or a dummy keypad records your Personal Identification Number (PIN).

Earlier, scammers had to physically return to the ATM to retrieve this device and extract the data. But with newer tech, modern skimmers can now transmit the stolen information wirelessly—often via Bluetooth—allowing criminals to operate remotely. Once they have both your card data and PIN, they create duplicates and empty your account without triggering suspicion.

Electronic pickpocketing is more discreet and, in some ways, more dangerous. It targets RFID-enabled contactless cards—the ones we use for tap-and-pay convenience at shops and transport stations. All it takes is a scammer with a hidden RFID scanner in a crowded place.

As they pass near you, the scanner wirelessly reads your card’s data—without you noticing a thing. Although this data usually doesn’t include your PIN or Card Verification Value (CVV), it can still be misused for small online purchases, phishing scams, or sold on the dark web.

Skimming often leads to large unauthorized withdrawals using cloned cards, while Radio Frequency Identification (RFID) pickpocketing typically enables smaller tap payments or opens the door to identity fraud.

Despite their differences in technique, both forms of card fraud lead to financial loss, emotional distress, and a deep sense of being violated. Victims often describe the experience as more disturbing than traditional theft because of its silent, invisible nature.

How to Stay Safe

You don’t need high-tech tools to protect yourself—just awareness and a few smart habits. Here's how to stay one step ahead:

If You Use ATM or Chip Cards:

• Shield Your PIN
• Always cover the keypad with your hand or wallet while entering your PIN to block hidden cameras or prying eyes.
• Inspect Before You Insert
• Check the card slot and keypad. If anything looks loose, bulky, or misaligned, it might be a skimming device. A quick “jiggle test” can help detect tampering. Avoid using machines that reject your card or behave oddly.

• Use Secure ATMs
• Prefer machines located inside bank premises or monitored areas. Avoid isolated or dimly lit ATMs, especially at night.

• Turn On Transaction Alerts
• Enable SMS or app alerts for all card activity. Immediate notifications allow you to react quickly to unauthorized use.

• Use Tap-to-Pay When Available
• If your card supports contactless payments, use that feature instead of inserting your card. It reduces the chance of falling prey to skimmers.

• Switch to Digital Wallets
• Apps like Google Pay, Apple Pay, and Samsung Pay generate encrypted, one-time-use tokens instead of exposing your real card number. They add a layer of safety—especially at places like petrol pumps, where card tampering is more common. Just remember to protect your phone with strong passwords or biometric locks.

• Always Keep the Card in Sight
• When paying at hotels, fuel stations, or restaurants, make sure the card machine is brought to you. Never hand over your card casually or let it go out of view. Whenever possible, use a credit card instead of a debit card, as it doesn’t link directly to your savings and provides better fraud protection.

For Contactless (RFID-enabled) Cards:

• Use RFID-blocking Wallets
• These wallets or sleeves prevent wireless scanners from reading your card through clothes or bags.
• Carry Only What You Need
• Limit the number of RFID cards you carry to reduce your exposure.
• Watch Out for Small Charges
• Fraudsters often test stolen cards with low-value transactions. Even tiny charges should be reported immediately.
• Turn Off Tap-to-Pay If Unused
• Most banking apps allow you to disable the contactless feature. If you don’t use it often, it’s safer to keep it off.

If You Suspect Fraud, Act Fast

1. Block Your Card Immediately
2. Use your bank's app or call the helpline to freeze your card before more damage is done.
3. File a Police Report or Use the Cybercrime Portal
4. Visit your local police station or file a complaint online at www.cybercrime.gov.in. You can also call the national cyber helpline at 1930 for assistance.
5. Get an FIR or Written Acknowledgment
6. You’ll need this for legal and banking procedures. Insist on a copy to support your refund request.
7. Request a Chargeback from Your Bank
8. Provide all evidence—SMS alerts, complaint copies, screenshots—and ask your bank to reverse the fraudulent transaction.

In today’s digital world, criminals don’t need to steal your wallet—they just need to compromise your card. Whether it’s through skimming devices or silent RFID scanners, card fraud has become a faceless, silent threat.

But with the right habits, awareness, and timely action, you can protect yourself and your hard-earned money. Stay informed. Stay alert. And most importantly, stay in control.

July 6, 2025