4 ways to increase customer trust in the age of credit card skimmers

In an era when credit card skimmers and numerous other types of fraud continue to run rampant, businesses must be constantly vigilant and proactive. After all, it only takes one major breach to wreak financial havoc and damage your customers’ trust, perhaps irrevocably. 

To combat these crimes, it is vital to understand what credit card skimming is and the best practices you can put in place to keep it and its effects at bay.

Credit card skimming explained.

Credit card skimming is a criminal practice that exploits the magnetic stripe on the back of most credit cards. Thieves utilize a small, unobtrusive device known as a skimmer to capture the information contained in the stripe.

Skimmers can be discreetly placed on legitimate point-of-sale sites such as mobile credit card readers or ATMs. The sensitive payment details that they capture can then be used to clone a new card or to make an online purchase. 

It should be noted that skimming can also happen remotely via illegal activities, such as phishing schemes.

Although card reader security practices have improved vastly in recent years, skimming continues to plague businesses both small and large. 

Fortunately, there are some concrete steps that you can take to mitigate the effects of skimming.

1. Prioritize security behind the scenes.

If you build a strong data safety infrastructure that focuses on fostering an environment of security awareness throughout your operations, you will create a solid bedrock of support. This should start with an investment in advanced security measures, including point-of-sale terminals and a portable card reader with EMV technology. 

Additionally, every transaction should be masked with tokenization and encryption to prevent hackers from gaining access to sensitive payment details.

Furthermore, make upgrading and updating your systems a high priority. All software, hardware, and systems should be outfitted with the most recent firmware and security patches, helping to ensure that your data fortress remains impervious to breaches.

Augment your physical plant and data security protocols with ongoing training for staff at all levels. Be sure that they are taught to recognize the signs of suspicious activity, and have reporting protocols in place to ensure that they have a responsible person who is in charge of addressing potential breach situations as they arise.

2. Maintain transparency.

Now that your infrastructure is shielded as much as possible, it’s time to address customer-facing issues. Perhaps most important is to foster an environment where transparency remains a top priority. 

When it comes to security, customers are reassured when they understand the steps you are taking to keep their information safe from digital criminals.

To that end, make it a point to prominently display seals of approval and security certificates. Devote space on your website to detailing what you are doing to safeguard customer information, and make yourself or your staff available to answer questions in person or via email.

Another component of transparency has to do with educating your customers. Tell them what specific actions they can take to avoid skimmers, e.g., regularly reviewing their accounts and inspecting terminals.

Should a skimming incident occur, don’t hide your head in the sand. Respond promptly, and don’t hesitate to speak directly with affected clients. By doing so, you will come across as part of the solution, thus inspiring added trust.

3. Help your customers to feel in control.

Inspiring trust also happens when you demonstrate a commitment to empowering your customers. Let them know that there are other payment options in addition to credit cards that might be safer, including those using digital wallets, mobile transactions, and contactless near-frequency communication (NFC) technology.

Another effective tool involves the use of zero liability policies. These offer a layer of financial protection for customers should your business be the victim of a skimming attack. 

Augment these with ongoing fraud monitoring in which customers can participate to furnish crucial peace of mind.

4. Remain watchful.

Because the security landscape is constantly changing, you need to keep your ear to the ground when it comes to evolving threats. With what you learn in mind, continue to update your systems and practices accordingly. 

And don’t be shy about letting customers know that your data safety monitoring is occurring 24/7/365.

Unfortunately, not even the strictest security measures can guarantee absolute protection against card skimming and other criminal activity. However, understanding how skimming works and enacting preventative measures will go a long way toward safeguarding your data and that of your valued customers.