How to Avoid Card Skimming and Protect Your Information

Card skimming involves the illegal capture of financial card data, such as credit or debit card details, often using hidden devices. This type of financial fraud can compromise personal security by copying card information during legitimate transactions. Skimmers are frequently placed on various terminals, including automated teller machines (ATMs) or point-of-sale systems.

Recognizing Skimming Devices

Consumers can perform physical inspections of card readers and ATMs to identify potential skimming devices. Skimmers are designed to blend in with legitimate equipment, but visual cues can reveal their presence. These devices may appear as loose or ill-fitting parts, display different colors or materials compared to the original machine, or show signs of adhesive residue or unusual bulkiness.

When inspecting a card reader at gas pumps, ATMs, or retail terminals, check for misaligned card slots or keypads that seem raised or out of place. Perform a “wiggle test” by gently pulling on parts of the card reader or keypad to check for looseness or easy removal. If any component moves easily or appears to be an add-on rather than an integrated part of the machine, it could indicate a skimming device. At gas pumps, consumers can also check for broken security seals on the panel where card readers are located, as a “void” message on the seal suggests tampering.

Some skimmers may be internal, making them invisible, while others include pinhole cameras to record PINs. These small cameras might be located above the keypad or in nearby fixtures like pamphlet holders, angled to view PIN entries. Comparing the card reader or keypad to those on neighboring machines can also reveal discrepancies in appearance or alignment, signaling a tampered device.

Safeguarding Your Card and PIN During Transactions

When entering a PIN at any terminal, always cover the keypad with your free hand to obscure your entry from potential hidden cameras or onlookers. This practice helps prevent criminals from capturing your PIN alongside your card data.

Use chip readers over magnetic stripe readers for enhanced security. Chip cards generate a unique transaction code for every sale, making it much harder for fraudsters to create counterfeit cards even if the data is intercepted. Unlike magnetic stripe cards, which store static data that can be easily copied, chip technology encrypts information and produces a one-time use code, significantly reducing the risk of card-present fraud.

Opting for contactless payment methods, such as tap-to-pay using a card or mobile wallet, offers additional security. Contactless transactions use encryption and tokenization, generating a unique, one-time code for each payment, which helps protect sensitive data and makes skimming difficult. Since your card or device never physically contacts the terminal’s card slot, the risk of traditional skimming techniques is reduced.

Choosing well-lit, visible, or high-traffic ATMs and gas stations offers protection. Criminals may prefer to install skimmers in less observed locations. While no location is entirely immune, those with higher visibility or security cameras are generally considered less susceptible to tampering.

Protecting Your Information Online and Digitally

Protecting card information online is also important, as threats like “e-skimming” exist. E-skimming involves malicious code injected into e-commerce websites to steal card details during online transactions. To guard against this, always verify that online payment pages use a secure connection, indicated by “https” in the website address and a padlock icon in the browser’s address bar.

Be vigilant against phishing emails and suspicious links, which aim to trick users into revealing card details or other sensitive information. Never click on links or download attachments from unexpected or suspicious emails, and avoid entering card information on unfamiliar websites. Instead, navigate directly to trusted merchant websites.

Using strong and unique passwords for all online accounts, especially those linked to financial information, enhances security. Passwords should be complex and not reused across different platforms. Enabling two-factor authentication (2FA) wherever available provides an extra security step, requiring a second verification method beyond just a password to access an account. This significantly reduces the risk of unauthorized access even if a password is compromised.

Avoid conducting financial transactions or entering sensitive card information when connected to public Wi-Fi networks. These networks are often unsecured and can be vulnerable to interception by unauthorized parties. When processing payments online, consider using secure payment services like digital wallets, which often do not share your actual card details with merchants and use tokenization for added security.

Monitoring Your Accounts for Suspicious Activity

Regularly reviewing bank and credit card statements helps detect unauthorized transactions promptly. Most financial institutions provide online platforms and mobile applications that allow for easy and frequent monitoring of account activity. Discrepancies or unfamiliar charges should be reported to the financial institution immediately.

Setting up transaction alerts through email or text messages from financial institutions provides real-time notifications for account activity. These alerts can notify you of purchases, withdrawals, or other transactions as they occur, enabling quick identification of any suspicious movements. Early detection can help limit potential financial damage and facilitate a quicker resolution process.

Periodically checking credit reports protects against broader financial fraud. Consumers are entitled to a free credit report from each of the three major credit bureaus—Equifax, Experian, and TransUnion—once every 12 months. Reviewing these reports helps identify unexpected accounts, inquiries, or other activities that could signal identity theft or fraudulent use of personal information. Placing a fraud alert on credit reports can also notify creditors to take extra steps to verify identity before extending new credit.