Scammers now are bugging keypads consumers use every day at retail stores to pay for purchases with credit and debit cards, said Tom Spring, PCWorld writer in an article posted to the pcworld.com Website May 17, 2007. Criminals now have a new way to take advantage of Americans' dependence on credit and debit cards -- stealing consumers' identities and wrecking credit standings in this process.

The police believe it works this way:

    * The criminals come back later to acquire the bugged keypads and harvest the data
    * As clerks attend to an "emergency" elsewhere, the keypads are changed in a matter of seconds
    * Using stolen identities, the crooks then rack up big debts on cards, usually far from where the data was stolen.
    * Criminals place "skimmers" in the keypads that store card and personal identification (PIN) numbers
    * Working in pairs or groups, they bring the doctored devices into stores, then create a distraction

    Zack Anderson, president of American Debt Control, stated: "Just when you think the bad guys can't stoop any lower, you find out they can. This provides consumers with one more very important reason to take an active role in maintaining good credit ratings. If a person waits for a monthly statement, that could be too late; the account could be drained. They might not find out about it until the next time they try to use their card, or when the bank statement arrives"

    The federal government asks each of the three nationwide consumer reporting companies -- Equifax, Experian, and TransUnion - to offer individuals a free copy of their personal credit reports once each 12 months. This is enforced by the Federal Trade Commission through the Fair Credit Reporting Act. Another important step for clients is to check credit ratings consistently. Credit reports include data regarding address, a person's history of paying bills and if they have been arrested, sued or filed for bankruptcy. Credit reporting companies sell this information to businesses to help them decide how much credit to extend and what rates to charge. Employers use them to screen job applicants.

    Clients can recieve instant results by simply typing in address, name, Social Security number and date of birth at the secure, federally mandated Website www.annualcreditreport.com. The service is free and instantaneous. For a small additional fee paid to the reporting company, consumers also can find their precise credit score - useful data when preparing to negotiate financing for a major purchase. Erroneous entries and fraudulent activity drive down a person's credit rating; but they can be contested, and good credit eventually restored.