New Criminal Provision Prohibiting the Possession of Skimming Devices

The North Carolina legislature recently passed S.L. 2021-68 which amends the existing financial transaction card theft statute to include knowingly possessing, selling, or delivering a skimming device. What Is Skimming? Skimming is a type of credit card theft where criminals use a small device to steal credit card information during an otherwise legitimate credit or debit card transaction. When a credit or debit card is swiped through a skimming device, the device captures and stores all the details stored in the card's magnetic strip, including the card number, expiration date, and the card holder's full name. Thieves use the stolen data to make fraudulent charges either online or with a counterfeit credit card. Skimming devices are most commonly installed on ATMs, point-of-sale (POS) terminals, or fuel pumps. Fuel pump skimmers are usually attached in the internal wiring of the machine and aren’t visible to the customer. ATM skimmer devices usually fit over the original card reader. Pinhole cameras also are installed on ATMs. They record a customer entering their PIN; the camera placement varies widely. In some cases, keypad overlays, which record a customer’s keystrokes, are used instead of pinhole cameras to record PINs. The data collected by the skimming device is downloaded or wirelessly transferred later. Skimming device fit over original card reader Keypad overlay Existing Law Before the enactment of S.L. 2021-68, the financial transaction card theft laws did not explicitly include skimming devices. G.S. 14-113.8 provides a definition of “scanning device,” which means a scanner, reader, or any [...]