How to Protect Your Business
Credit card theft is bigger than ever. In 2024, data breaches in the U.S. exposed more than 1.7 billion personal records, and stolen payment card data remains one of the top targets for cybercriminals. If you run a business that takes card payments, understanding how hackers steal card data is the first step to stopping them.
This guide walks through the six most common ways criminals steal credit card information today. Each method is explained in plain language, with tips on how to protect your customers and your business.
1. Phishing Emails and Fake Websites
Phishing is the most common way hackers steal card numbers. A phishing attack is a fake email, text, or website that tricks someone into typing in their personal information.
A thief might send an email that looks like it came from a bank or shipping company. The email asks the customer to click a link and “verify” their account. The link goes to a fake site that captures the card number.
Business owners are also targets. Criminals often send fake invoices to trick staff into handing over payment data or login credentials.
How to protect your business
Train employees to spot suspicious emails. Never click links in unexpected messages. Use email filters and require multi-factor authentication (MFA) for every account that touches payment or banking data.
2. Malware and Keyloggers
Malware is harmful software that a hacker secretly installs on a computer or payment terminal. Once installed, it can record keystrokes, copy files, or capture card numbers as they are typed.
Keyloggers are a specific type of malware. They track every key a person presses. If an employee types a card number into an office computer infected with a keylogger, the thief sees it instantly.
RAM scrapers are another serious threat. These programs pull card data out of a payment terminal memory during the split second when it is not encrypted.
How to Protect Your POS
Keep all operating systems, browsers, and point-of-sale software patched and up to date. Use business-grade antivirus tools. Restrict admin access so staff cannot install random software. Learn more in our guide on how to identify and fix your POS system security flaws.
3. Card Skimmers on Payment Terminals and ATMs
A skimmer is a small device a thief attaches to a real payment terminal, gas pump, or ATM. When a customer swipes a card, the skimmer copies the magnetic stripe data.
Modern skimmers can be very hard to see. Some fit inside the card slot and can only be found by disassembling the device. Others use tiny cameras to record PIN entries.
EMV chip cards are much harder to clone than magnetic stripes, but many small businesses still allow stripe fallback. That single weakness lets old-school skimming keep working.
How to Protect Your Payment Hardware
Inspect your terminals every day. Look for loose parts, extra wires, or housing that does not match the original device. Use EMV chip readers and contactless (tap-to-pay) whenever possible. Only accept magnetic stripe transactions when there is no alternative.
4. E-Skimming and Magecart Attacks on Websites
E-skimming is the online version of a card skimmer. Hackers sneak a few lines of malicious code into a checkout page. The code quietly copies every card number a shopper types in before the page submits the order.
These attacks are often called Magecart attacks, named after the criminal groups that made them famous. They have hit everyone from tiny online shops to major global brands.
The scary part is that shoppers cannot see it happening. The checkout page still works. Orders still go through. The merchant only finds out when customers report fraud weeks later.
How to Protect Your Website
Use a hosted payment page or iframe so card data never touches your own servers. Limit third-party scripts on your checkout. Run file integrity monitoring so you know when someone changes the code on your site. Review our article on PCI compliance questions every merchant should ask for a deeper look at checkout security.
5. Third-Party and Vendor Data Breaches
Sometimes the break-in does not happen at your business. It happens at a vendor or partner that has access to your systems.
Hackers love vendors because they often connect to many businesses at once. Break into one HVAC contractor, IT help desk, or loyalty program, and the attacker gets a path into hundreds of merchants.
Cloud storage providers, marketing tools, and plug-ins for shopping carts are all common weak spots. Supply-chain attacks have been behind many of the largest payment card breaches on record.
How to Protect Yourself From Vendor Breaches
Audit every vendor that touches your network. Ask for proof of their security practices. Use the least-access principle: vendors should only be able to see what they absolutely need. Consider data breach insurance for your business in case a vendor slip-up exposes your customers.
6. Social Engineering and Insider Threats
Not every attack uses code. Sometimes hackers just ask for what they want. Social engineering means tricking a person into giving up a password, card number, or building access.
Common tricks include fake phone calls from the “IT team,” urgent texts that pretend to come from a manager, and fake job applicants asking for a tour of the store. AI-generated voice cloning has made these scams even more convincing.
Insider threats are related. An angry or dishonest employee with access to card data can copy or sell it without anyone noticing until the damage is done.
How to Train Your Staff
Create clear rules for verifying anyone who asks for sensitive information. Require callbacks to known phone numbers. Remove access right away when an employee leaves. Rotate passwords and review who can see payment data at least twice a year.
The Cost of a Card Data Breach
A single breach can cost a small business tens of thousands of dollars. The charges add up fast: forensic investigations, card network fines, replacement card fees, legal costs, and lost customer trust.
Being PCI compliant is your first line of defense. If you do have a breach and you were not PCI compliant, fines from Visa and Mastercard can run into the hundreds of thousands of dollars. Learn more in our guide to 7 PCI compliance myths and misunderstandings.
Build a Security Habit, Not a One-Time Checklist
Hackers keep changing their playbook. The only defense that works is a constant security habit. Check your terminals daily. Update software weekly. Train employees every quarter. Review your PCI compliance every year.
Small businesses are not too small to be targets. In fact, hackers often prefer them because their defenses are weaker. Treat payment security as a basic cost of doing business, the same way you treat rent and insurance.
Final Thoughts on Stopping Credit Card Theft
Phishing, malware, skimmers, e-skimming, vendor breaches, and social engineering are the six main paths hackers use to steal card data. You can shut down most of them with basic security hygiene: strong passwords, MFA, patched software, EMV terminals, and careful vendor management.
Pair these habits with a processor that takes security seriously. If you are shopping for a new provider, start with our guide to choosing the best processor for your business. The right partner can help you stay one step ahead of the next hack.