What is a skimmer in the context of identity theft?

In the context of identity theft, a skimmer refers to a device specifically designed to capture credit card information illegally. These devices are often discreetly affixed to legitimate card readers, such as ATMs or point-of-sale terminals, without the knowledge of the merchant or the user. When an unsuspecting consumer inserts their card into the compromised device, the skimming device records the card's magnetic stripe data, allowing criminals to use this information for fraudulent transactions or to create counterfeit cards.

Understanding the impact of skimmers is crucial in the field of identity theft risk management, as it highlights the importance of vigilance and security measures that consumers and businesses should employ to protect sensitive financial information. This includes regularly checking for unfamiliar devices on ATMs and point-of-sale setups and being aware of common tactics used by identity thieves.