Imagine shopping online without knowing if your sensitive payment data is being intercepted. This growing cyber threat, digital skimming (e-skimming), targets online shoppers who may be shopping for anything, from booking flights to concert tickets, on legitimate websites.
Cybercriminals steal credit card information at checkout by writing malicious code into payment forms and redirecting users to fake pages. Digital skimming lets attackers steal massive amounts of data and sell it on the dark web without physical access. Protecting your online storefront requires preventing these attacks, which is why we’ve written this handy guide in order to help you do just that.
Table of Contents
Digital skimming at a glance
How digital skimming works
Types of digital skimming attacks
How to identify digital skimming threats
Prevention and mitigation strategies
Summary
Digital skimming at a glance
As online shopping has increased, cybercriminals have evolved in their methods to steal data and money. Nowadays, sophisticated online skimming techniques can be used instead of physically tampering with ATMs and POS terminals, with data theft becoming more lucrative as e-commerce grew.
Magecart, a collection of hacker groups, changed this evolution, injecting malicious JavaScript into websites that allowed them to capture payment information shoppers entered.
The threat, whereby attackers use third-party code on checkout pages to target retail and e-commerce, is growing. In 2022, digital skimmers bypassed traditional security measures of around 17,000 websites, costing businesses millions altogether and risking the loss of customer data.
How digital skimming works
Digital skimmers are able to infiltrate websites via security flaws. Typical targets are third-party scripts, JavaScript libraries, and poorly configured Amazon S3 buckets. Once they gain a foothold, they insert malicious code into checkout pages to silently steal card information. The Magecart toolkit is especially notorious for embedding skimming code into payment forms.
Attackers can now use automated software to skim multiple websites, hiding malicious scripts as analytics or monitoring tools to avoid detection.
Customers’ payment information is then stolen and sent to attacker-controlled servers to be sold on dark web markets or used for fraudulent purchases. This method of compromising third-party code exploits modern e-commerce sites’ complex integrations and works well. Digital skimming threatens online retail because these attacks are subtle and can go undetected for years.
Types of digital skimming attacks
Here are some of the most common skimming methods hackers use to attack e-commerce sites:
E-commerce skimming
Modern e-commerce skimming targets the payment system. Attackers use third-party integration flaws to plant malicious JavaScript code that silently steals customer data during checkout. They may use administrative credentials or platform vulnerabilities to install skimming software.
These stealthy attacks can collect credit card data and send it to attacker-controlled domains over months and even years. Merchants struggle to identify the source of these breaches because the malware hides in their payment processes.
Point-of-sale (POS) skimming
POS skimming targets physical payment terminals, while e-commerce skimmers target payment pages online. These attackers exploit network vulnerabilities or POS software flaws to steal credit card data during in-person transactions.
This method has advanced from crude hardware modifications, with modern digital attacks on POS terminals now being so seamless that retailers struggle to detect them using traditional security measures.
ATM skimming
While criminals who undertake ATM skimming still need physical ATM access, methods have advanced beyond card readers and hidden cameras, and they can now use digital methods to steal card data and PINs.
Modern skimming devices can be discreetly installed and collect data remotely, eliminating the need for frequent visits to compromised machines. Though limited to physical access points, this evolution mirrors the sophistication of e-commerce attacks.
How to identify digital skimming threats
Red flags for consumers
Online shopping is risky, but knowing what to look for can protect your payment information. Being redirected to an unfamiliar page during checkout is just one red flag. Strange checkout pages may have form fields or a bad layout. Slow checkout pages or forms with pre-filled information should be avoided.
Before entering your card information, ensure the website address starts with “https,” certifying that the website encrypts its data. For added security, use a virtual credit card or trusted payment services. These simple checks can help prevent credit card information theft.
Indicators for e-commerce businesses
E-commerce businesses must monitor website behavior, especially payments. Unexpected code changes or checkout page scripts could mean someone is trying to infiltrate the platform. If customers complain about strange checkout issues or you notice more failed payments than usual, something may be wrong.
Modern security tools can detect skimming early; try using scanning systems to find vulnerabilities before attackers do, and monitor site usage to spot unusual patterns. Track outside code and encrypt sensitive data on your site, which is akin to having an online store security system. In short, you want to catch problems before they worsen.
Regular security checks protect customer data, and your business’s reputation. You must detect suspicious activity quickly before hackers are able to steal your customers’ data.
Prevention and mitigation strategies
For consumers
Use safe payment methods, like PayPal or credit cards, that monitor for fraud. Keep an eye on your transactions, with a quick check every so often helping to potentially tip you off to problems early on. When websites offer two-factor authentication, you should use it.
For businesses
Safety should be your top priority if you have an online store. By checking your website’s code often, you can find and fix weak spots before attackers do. Also, make sure that your payment forms are safe, and watch for any unexpected changes on your site.
These days, security tools can instantly spot and stop any questionable activity on your payment pages, keeping your customers’ information safe.
Role of technology and software solutions
You can employ several important technologies to work together to stop people from skimming. Your site’s Content Security Policy tells scripts what they can and can’t do, while Subresource Integrity checks to see if external files have been changed.
Web application firewalls stop harmful traffic from getting to your site. In addition, new machine learning-based tools can recognize odd patterns that could indicate that someone is trying to steal data.
Legal and regulatory aspects
Laws like GDPR and PCI DSS clarify how to keep payment information safe. This means businesses must encrypt private data, manage who can see it, and constantly check for holes in their security.
If you’re running an e-commerce store, be careful not to break these rules, as you may be fined. These rules help ensure that online sellers who handle payments do so safely.
Summary
Digital skimming targets both consumers and businesses through attacks on online stores, card readers, and ATMs. Businesses need strong defenses like firewalls and AI monitoring systems to protect their data. Customers can stay safe by using secure payment methods and checking their accounts.
Businesses have a lot to lose if their customers’ data is stolen. Not only will they lose their customers’ trust, but they may also be sued under GDPR and payment security standards. In order to beat skimmers, both businesses and customers must be on guard, take security seriously, and read up on the latest tactics being deployed.
