What Is ATM Skimming and How Can You Prevent It?
Empower yourself against ATM skimming. Understand this fraud and learn essential methods to protect your financial security.
ATM skimming is a form of financial fraud where criminals illegally capture payment card data and personal identification numbers (PINs). Understanding how skimming works and implementing preventative measures can help safeguard financial information.
What ATM Skimming Is
ATM skimming is a type of payment card fraud where devices are covertly installed on legitimate transaction terminals to steal sensitive information. These devices target data such as the card number, expiration date, and the cardholder’s PIN. Skimming incidents can occur at various locations, including automated teller machines (ATMs), gas pumps, and point-of-sale (POS) terminals. Fraudsters acquire this data to create counterfeit payment cards or execute unauthorized transactions. This activity costs financial institutions and consumers over $1 billion annually.
How Skimming Devices Work
Skimming devices capture card data as it passes through a compromised reader. Traditional skimmers are external attachments placed over an ATM’s card reader, designed to read the magnetic stripe. These overlays can be difficult to detect, as they blend in with the machine’s appearance. Fraudsters also need the cardholder’s PIN. PINs are captured either through fake PIN pads placed over the legitimate keypad or by tiny, hidden cameras recording keystrokes.
A more advanced device, known as a “shimmer,” targets chip-enabled cards. Unlike skimmers, shimmers are ultra-thin devices inserted directly into the card reader slot, between the card’s chip and the terminal’s chip reader. These devices are virtually invisible and collect data from the card’s chip as the transaction processes. Some skimming devices can transmit stolen data wirelessly, in real-time or for later retrieval.
How to Spot Skimming Devices
Identifying a skimming device requires careful observation before using an ATM. Physically inspect the card reader and PIN pad. Gently tug or wiggle the card reader and keypad to check for loose, bulky, or ill-fitting components. Genuine ATM parts are securely affixed and do not move easily.
Mismatched colors, textures, or materials on different parts of the ATM, particularly around the card slot or keypad, may indicate an attached overlay. Look for unusual attachments, such as a plastic bar above the screen that might contain a hidden camera, or signs of adhesive residue or tape. Covering the keypad with your free hand while entering your PIN can help protect against hidden cameras. If something appears out of place or suspicious, avoid using that machine.
What to Do If You Suspect Skimming
If you suspect an ATM has been compromised or your card information skimmed, act immediately to mitigate financial loss. Do not use the suspicious ATM. Report your concerns to your financial institution and the ATM operator.
Contact local law enforcement to file a police report; this can aid investigations and limit liability for fraudulent transactions. Regularly monitor your bank and credit card statements for unauthorized activity. Setting up transaction alerts through your bank’s mobile app or online banking provides real-time notifications, helping to quickly identify and address suspicious charges.