What does credit card shimming entail?

Credit card shimming is a method utilized by fraudsters to capture data from credit card chips. This process involves the use of a thin, shim-like device that can be inserted into card readers, specifically those that utilize EMV chip technology. The shim can extract sensitive information, such as the card's electronic data, without the cardholder’s knowledge. This data can then be used to create counterfeit cards or commit further fraud.

The focus on the capture of chip data is essential, as it's important to understand that traditional magnetic stripe cards are becoming less common due to enhanced security features found in chip cards. As such, understanding shimming not only highlights the evolving nature of credit card fraud but also underscores the importance of maintaining secure financial practices to protect personal information.

In contrast, other options describe different practices or incorrect legal usages that don’t specifically address the unique method of shimming and its implications in credit card fraud. This knowledge emphasizes the importance of remaining vigilant about the security of one’s financial information, especially in an era where technology continues to evolve in both secure and insecure ways.