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How to spot a card skimmer
Cybercrime isn't just online. Skimming scams are rising at ATMs, gas pumps and registers. Learn how to spot, avoid and respond to these hidden card-stealing devices.
Cybercrimes usually come to mind when people are concerned about identity theft and financial fraud. However, there is a growing threat of a skimming scam, which occurs in person at frequently used card readers such as gas pumps, ATMs and in-store registers. Skimming technology allows fraudsters to compromise credit card data, and these incidents are rising.
A FICO report revealed there were over 350,000 accounts of compromised debit cards from skimming in 2023. This was a significant 96% increase from skimming incidents reported in 2022. This report also revealed a substantial increase in skimming attacks on bank ATMs compared to gas pumps.
There are steps you can take and signs to look out for to reduce the risk of these attacks.
What is a credit card skimmer?
A credit card skimmer is a small, hidden device installed on top of a genuine card reader to steal personal data. Credit card skimmers are illegally installed on card readers, such as those at gas pumps, ATMs or point-of-sale (POS) terminals. Card skimmers are often installed with false keypads or pinhole cameras that can record PINs.
How do card skimmers work?
When a card is swiped in a compromised card reader, the skimmer reads the magnetic strip and records the data. A pinhole camera or keypad overlay installed by the scammer records the entered PIN. The scammer later returns to retrieve the skimmer and downloads the stolen data or, in some cases, retrieves the data remotely with wireless transmission. Skimmers are often installed on self-service card readers but can also be installed at a register when employees are not there.
What do card skimmers look like?
Card skimmers can be difficult to spot visually because they often look virtually identical to the original card reader. In many cases, a nearly identical card reader with a card skimmer in it is placed directly on top of the genuine card reader. This is the case with card readers with attached keypads and separate ones. A pinhole camera is difficult to spot because it resembles a small hole and can be installed in various locations around a card reader.
How to spot a card skimmer
While card skimmers can look very similar to real card readers, they are not completely indistinguishable. Look for the following signs that a malicious card skimmer may be installed.
Assess your surroundings
Look for signs of a hidden or pinhole camera. A pinhole camera can appear as a small hole in a panel attached somewhere on the POS terminal, ATM or gas pump. These devices are made to blend in with the terminal but can still be spotted. A pinhole camera will likely be easy to remove, so check to see if it feels loose.
Many ATMs and gas pumps have cameras to prevent theft or fraud. Cover the screen or keypad when entering personal data to prevent cameras from recording it.
Inspect the card reader for signs of tampering
Assess the card reader for obvious signs of tampering. If the card reader is damaged, cracked or dented, avoid using it. False card readers or keypads placed over real ones are meant to be removed. Check the card reader to see if it feels loose or comes off easily. If you are met with resistance when attempting to swipe a card or insert a chip, do not use the card reader.
Compare card readers
Compare the card reader to others in the immediate area to ensure they are identical. If one card reader is a different brand, model, color or texture, it could be a fake card reader with a skimmer. Check that all parts of the POS terminal, ATM or gas pump look similar and cohesive. Look to see if the keypad, chip reader or swiping panel is a different color or texture or if it stands out from the other components. If there are any variations, this could be a sign of a skimmer.
How to avoid card skimmers
While it might not be possible to prevent all skimming attempts, there are steps you can take to lower the risk of falling victim to these scams.
Avoid swiping
Tap to Pay or digital wallet apps are currently the most secure way to pay at a contactless payment terminal. These methods are more secure because they use encryption for the transaction, so thieves cannot get your card information. If that is not available, use chip technology over swiping. While card data is less likely to be compromised when these functions are used, it is not completely safe. Chips are vulnerable to a scamming technique called shimming, which works similarly to a skimming device but reads a card's microchip instead of the magnetic strip. However, it is still safer than swiping.
Learn about the top digital wallet companies.
Opt for credit over debit
Whenever possible, run transactions as credit instead of debit. This is more secure because credit transactions do not require PINs. Scammers cannot collect your full debit card data if they cannot record the PIN via camera or false keypad. Use a credit card instead of a debit card attached to multiple accounts. When scammers gain access to a card that is connected to multiple bank accounts, they can easily gain access to all accounts. When using a standalone credit card, they are only able to gain access to one account.
Be selective of locations
Choose to pay or complete bank transactions inside instead of paying at the pump or using an ATM, whenever possible. High-traffic tourist locations are hotspots for skimming activity, so avoid using self-serve card readers in tourist locations unless necessary. Avoid using isolated ATMs and gas pumps. Choose well-lit locations indoors or spots close to attendants. These locations are less likely to be compromised since it is harder for criminals to access them for long enough to install skimming technology.
Regularly monitor statements
Check bank and credit card statements and activity regularly. Looks for unauthorized purchases or suspicious large transactions. Be especially vigilant of account activity if a card was recently used at the card reader with signs of potential tampering.
What to do if your card is skimmed
Take these steps if you suspect your card has been skimmed. It's important to act as soon as suspicious activity is suspected to avoid further fraud attempts and identity theft.
Contact your bank
Call your bank to report any suspicious activity immediately. Some banks have policies where fraud must be reported within a certain timeframe. It's important to stay on top of account activity and monitor for signs of fraud. Banks can issue new cards and put temporary freezes on accounts to prevent further fraud.
File a police report
If skimming is suspected, report the incident to the local police department and provide details on where the skimming took place. This will allow police to investigate and remove skimming devices to prevent further incidents.
Freeze your credit report
Prevent fraud and identity theft once card data has been compromised. Contact the three major U.S. credit bureaus -- Equifax, Experian and Transunion -- to request a freeze of your credit report. This freeze prevents lenders from accessing your credit report, making it nearly impossible for scammers to open new lines of credit with your information.
Ava DePasquale is a freelance content writer with a degree in professional writing from Fitchburg State University.
