Key points about: credit card skimming
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Credit card skimmers are devices that scammers attach to card readers to steal your credit card information.
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In addition to looking out for skimmers, you should regularly monitor your card statements and credit report to catch any suspicious activity.
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If you think your card has been skimmed, contact your financial institution immediately.
Credit cards are more popular than ever for several reasons, including the security they provide. Thanks to technology, credit card transactions have become more secure over the years. But technology has also allowed scammers to create new ways to steal your personal information. One of the methods that thieves use to get this information is credit card skimming.
Credit card skimming is a method of illegally obtaining credit card or debit card information from ATMs, gas stations, or point-of-sale (POS) terminals. The FBI reports that credit card skimming results in more than $1 billion being stolen from financial institutions and their customers every year.
What is credit card skimming?
Using your credit card at a POS terminal, fuel pump, or ATM requires you to tap or insert your card into the machine.
Credit card skimming involves attaching a device known as a "skimmer" to a credit card reader at an ATM, gas station, or POS terminal. Every time someone uses their card where there is a skimming device, the skimmer can steal card information such as the credit card number, PIN code, CVV code, and card expiration date.
Skimmers are often found at ATMs and gas stations, though it's also possible for POS terminals at retail stores, restaurants, and similar establishments to be targeted for skimming. You may also find skimmers at vending machines, self-checkout kiosks, and ticket machines at train stations. Scammers use the data they gather to make purchases or create fake payment cards.
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How does a credit card skimmer work?
Credit card skimmers are attached to card readers at ATMs, gas stations, or POS terminals and scan or “skim” the card when you use it. They’re usually mounted over the existing card scanner in POS terminals or ATMs. At ATMs, tiny cameras or keypad overlays enable scammers to steal your PIN.
The skimmer can read the magnetic strip on the credit card and store it. The skimmer may gather data for days or weeks before the scammer returns to collect the information. Criminals may also use Bluetooth-enabled devices that send stolen information directly to their phones or computer.
As credit card technology has evolved, scammers have devised new ways to steal and misuse card information. You may already know that many credit cards now use EMV chips to protect users from the security vulnerabilities of magnetic strip payments. However, fraudsters have developed newer devices to steal information from EMV chips. This is called credit card shimming, and it follows the same premise.
Shimmers steal card data using the card’s EMV chip. In this case, fraudsters insert an ultra-thin device called a "shim" that has a microchip and flash storage into card reader slots that accept chips. The shim transfers the information from your credit card to the device.
Scammers may use the stolen data to create fake credit cards that can be used to make purchases or withdrawals from the actual card’s account.
How can you identify a credit card skimmer?
In order to identify a credit card skimmer, it’s important to know what to look for. ATM skimmers are specially designed to mimic the ATM's scanner, so it can be difficult to identify one unless you know what to look for.
It may not be apparent at first glance, so here are some tips from the Office of the Nevada Attorney General to help you spot a skimmer.
- Closely examine the card scanner you're using. Look for alignment issues, such as a card reader that sticks out at an odd angle.
- Compare the card reader to a neighboring ATM or gas pump and look for any differences.
- Feel the reader and try to shift it to see if it slips off the ATM easily.
- At gas pumps, you should find a security tape near the reader. If the seal is broken, this may be a sign that a scammer has already tampered with it.
- Be wary of unusual keypads, too. For instance, if the buttons on an ATM are too hard to push, uneven, loose, or soft to touch, avoid the machine.
POS skimmers are tougher to identify, especially when you have to hand your card to an employee to tap. If possible, look closely at the card reader to see if anything seems off. Skimmers are designed to blend in and can be tough to spot, even for trained law enforcement officers. But there are other steps you can take to avoid skimming.
How can you avoid credit card skimming?
The first step to steering clear of skimming is to be aware and careful. Observation and caution go a long way. If you have any doubts about the machine you’re about to use, don’t use it. If using your card is necessary, consider these options.
Be mindful of using an ATM in a tourist area
Remember that touristy areas are popular targets for thieves because of the high traffic and relatively low awareness. Be extra vigilant when using your card in such spots. If an ATM requires you to tap, swipe or insert your card in the entrance door for entry, carefully examine the door slot, too.
Inspect the card reader before using it
Tug or wiggle card readers to see if they feel loose. Look for irregularities in alignment, cut-off text or arrows, and readers that stick out from the machine. Be mindful of odd keypads with keys that feel unusually soft or hard to push down.
Cover the keypad when entering your PIN
First, check for small cameras near ATM keypads. Whether or not you find one, it’s crucial to make sure your PIN (or other personal information like your zip code) isn’t easy for anyone nearby or hidden cameras to spot. Always cover the keypad when entering your PIN or other details.
Check your statements regularly to track any unusual activity
Unfortunately, since skimmers are tricky to find, there’s no guarantee that you’ll never fall prey to a scam. That’s why it’s essential to track your credit card activity and ensure that there are no unauthorized transactions on your card. Regularly check your card statements and credit reports to ensure that there are no unfamiliar transactions or other suspicious activity.
Did you know?
Using a credit card is typically safer than using a debit card because many credit card companies offer some form of fraud protection. If you’re a Discover® Cardmember, you’re protected by the $0 Fraud Liability Guarantee. You’re never responsible for unauthorized purchases on your Discover Card.2
What should you do if your credit card is skimmed?
If you spot unauthorized activity on your credit card and believe your card information has been stolen, contact your credit card company immediately. You can inform them that you want to block the account and cancel your card to prevent further fraud. The card issuer will send you a new card and reopen your account in a few days once the threat is removed.
If you’re at a location where you believe there's a credit card skimmer, don’t tamper with it in any way. Instead, contact the store manager and local law enforcement.
Credit card skimmers are tough to spot so your best defense is to be aware of the warning signs. Staying alert and cautious before using a card reader anywhere can help you, and potentially others, avoid having your credit card skimmed.
