I have heard about "skimming". What is it?
Skimming is when the data on the magnetic stripe of a legitimate card is copied to a storage device and later encoded on another plastic with a magnetic stripe. It has essentially duplicated legitimate card data that can be used by a criminal to make fraudulent purchases. This can occur when a waiter takes your credit card to run it on their terminal or a skimming device can be installed on an unmanned gas pump or ATM machine. Chip processing will greatly inhibit skimming.