How to Spot and Avoid Credit Card Skimmers

Credit card skimmers pose a significant threat to personal financial security. These illicit devices, attached to payment terminals, capture credit or debit card data. When a card is inserted or swiped, the skimmer records information from the magnetic stripe. Fraudsters use this stolen data for unauthorized purchases, counterfeit cards, or identity theft.

Identifying Skimmers at Various Locations

Be vigilant when using payment terminals in public locations like gas pumps, ATMs, and point-of-sale (POS) systems. Before inserting your card, visually inspect the card reader and keypad for any unusual appearance, looking for bulky, misaligned parts or different colors.
A “jiggle test” can help detect external skimmers; gently tug and wiggle the card reader, keypad, and surrounding panels, as legitimate components should feel securely affixed. Also, examine the area for signs of tampering, such as sticky residue, pry marks, or broken security seals. Comparing the terminal to others nearby can reveal discrepancies.

Secure Payment Habits

Adopting secure payment habits reduces skimming risk. Always prioritize EMV chip technology by inserting your card into the reader instead of swiping the magnetic stripe. EMV chips generate a unique, one-time transaction code, making it difficult for fraudsters to counterfeit cards or use stolen data, unlike easily copied magnetic stripe information.
Mobile payment options like Apple Pay or Google Pay offer enhanced security through tokenization, replacing your card number with a random “token” so details are never directly transmitted. Always cover the keypad when entering your Personal Identification Number (PIN) to prevent hidden cameras or overlays from capturing your entry, and for gas purchases, consider paying inside the convenience store, especially at older pumps, as internal skimmers can be harder to detect.

Responding to Suspected Skimmers

If you suspect a credit card skimmer, avoid using the compromised terminal. Do not attempt to remove the device yourself, as it is evidence of a crime. Immediately notify the merchant or business owner so they can investigate and take the machine out of service.
Promptly report the suspected device to local law enforcement, providing details like the exact location, date, and any specific observations. Also, contact your credit card issuer’s fraud department to inform them of the potential compromise, even if no fraudulent charges have appeared yet. Timely reporting helps protect your accounts, as many card issuers have zero-liability policies for fraud.