What is card skimming?

Card skimming refers specifically to the illegal process of copying card information from the magnetic stripe of a credit or debit card. This criminal activity typically involves a device, often called a skimmer, which can be placed on ATMs, gas station pumps, or point-of-sale terminals. When a card is swiped through a skimmer, the device captures the sensitive data stored in the magnetic stripe, including the card number, expiration date, and sometimes the cardholder's name. This stolen data can then be used to create counterfeit cards or facilitate unauthorized transactions.

Understanding how skimming works is essential for recognizing the importance of protecting card information. Legitimate duplication of cards, creating various card designs, or tracking transactions do not involve deceit or breach of consumer trust and legality, which is the hallmark of skimming. Thus, the correct answer highlights the unlawful nature and method of card skimming, emphasizing the risks associated with compromised payment security.