What is credit card skimming?

Credit card skimmers, discreetly placed on ATMs and point of sale (POS) terminals, enable criminals to steal credit and debit card information, jeopardizing your personal data and financial well-being. Given the prevalence of credit card skimming and other forms of fraud, it’s important to exercise caution and stay vigilant in safeguarding your credit and debit card information. Learn how to spot credit card skimmers and protect yourself against credit card fraud.

How do credit card skimmers work?

A credit card skimmer is a device installed on ATMs or POS terminals. It looks like a regular card reader but secretly collects your card information when you swipe it for a payment or transaction. Information is captured on the skimmer, and criminals may retrieve the physical device or have the data sent to them via Bluetooth. This stolen data often includes your name, card number, and expiration date from the magnetic strip on your card. Once scammers have this information, they can:

Use your credit and debit card information for identity theft
Sell your personal and credit card information to other criminals
Make unauthorized purchases
Create counterfeit cards

While credit card skimmers mainly target cards with magnetic strips, those with chips can also be vulnerable. Scammers may insert thin devices called credit card shimmers into chip reader slots, which are difficult to see.

Despite skimmers looking like regular card terminals, there are ways to detect them and protect your information from theft.

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How to spot a credit card skimmer and prevent fraud

1. Look at the card reader

Give the card reader a thorough inspection. Look for any unusual attachments, loose parts, coverings, or signs of tampering. If any of these inspection points raise an alarm, it could be a sign the skimmer is installed.

2. Feel and wiggle the card reader

Try gently wiggling the card reader. Legitimate card readers are usually securely attached and won’t move.

3. Inspect the security seal

If you’re conducting a transaction at a gas pump, check the security seal near the card reader. Open or broken seals will have a label that reads void. In this case, the reader has been tampered with and there may be a skimmer installed.

4. Search for hidden cameras

Scammers may install hidden cameras to capture PIN numbers. Look for any unusual or out-of-place objects near the keypad. Some machines or terminals may also have legitimate nearby security cameras, but it’s advisable to still cover the keypad to protect your information.

5. Check and cover the keypad

Shield the keypad with your hand while entering your PIN to prevent it from being recorded.

6. Compare with other terminals

It’s a good practice to know what a typical POS terminal looks like. That way, when you conduct a transaction, you can tell if something looks like it is out of place. When you’re at a gas pump, you can also compare the terminal you’re using to nearby pumps.

What to do if your credit card is skimmed

If you suspect that your credit card has been skimmed, take immediate action to minimize damage:

Contact your bank or credit card issuer to report the incident.
Freeze your account or cancel your card to prevent further unauthorized transactions.
Monitor your account statements closely for any unusual activity.
Consider placing a fraud alert or credit freeze on your credit report to prevent identity theft.

By staying vigilant and following these preventive steps, you can greatly lower the chances of becoming a target of credit card skimmers and keep your finances safe. To protect your personal data and spot other types of fraud, learn more privacy and safety tips.