Credit Card Skimming Scams
In our increasingly cashless world, credit card scams have become a persistent threat, targeting individuals from all walks of life. There are all kinds of credit card scams, and some of them are quite sophisticated. But even the most basic scam can often be devastating. Let’s take a look at credit card skimming scams and how to protect yourself from falling victim to these schemes.
What is a credit card skimming scam?
In credit card skimming scams, criminals attach tiny devices to ATMs, card readers and/or other payment terminals. These devices are designed to capture data that’s stored on the magnetic stripe of credit or debit cards. The perpetrators also pair skimmers with hidden cameras or fake keypads to record the user’s PIN. The devices will capture credit or debit card information when unsuspecting individuals swipe, tap or insert their cards, and then transmit this information to the scammer, who will then use the card to commit fraud. Unfortunately, the victim may not even know about the scam until they receive their next credit card bill or bank statement.
Where are credit card skimmers installed?
Skimmers can be installed anywhere a card reader is accessible to the public. However, they are most commonly found in:
ATMs. Particularly those located in less-secure or low-traffic areas, like convenience stores or street corners.
Gas pumps. Card readers on older pumps are especially vulnerable, as they often lack modern security features.
Self-checkout stations. Grocery stores, pharmacies and big-box retailers may unknowingly host compromised terminals.
Signs of a tampered keypad or ATM
It’s important to know the signs so you can spot a tampered keypad or ATM on your own. Here’s what to look for:
Loose or bulky card readers. Skimming devices are often placed over existing card readers. If the reader looks misaligned, wobbly or unusually thick, it could be compromised.
Unusual keypads. A fake keypad is sometimes placed over the original to capture PINs. Signs include keys that feel loose, spongy or are difficult to press.
Visible glue or tape residue. Criminals often attach skimming devices hastily. Look for sticky residues or signs of tampering around the card slot or keypad.
Small cameras or holes. Inspect the area around the card reader and keypad for tiny pinhole cameras that are aimed at recording PIN entries.
Out-of-place components. Check for mismatched colors, textures or design inconsistencies between the card reader and the rest of the machine.
Protect yourself
Here’s how to stay safe from a card skimming scam:
1. Inspect the machine. Before inserting your card into a machine, take a moment to inspect the ATM or payment terminal. Wiggle the card reader and keypad to see if they’re loose or feel unnatural. It’s also a good idea to check if the card reader looks newer than the rest of the machine.
2. Stick to ATMs at your credit union. ATMs located at financial institutions are more secure than standalone machines found in convenience stores or gas stations. Banks also monitor their machines for tampering more regularly.
3. Cover your PIN. Use your hand or wallet to shield the keypad when entering your PIN – even when there is nobody around you. This simple act can prevent hidden cameras from capturing your information.
4. Enable transaction alerts. Most financial institutions and credit card companies offer real-time alerts for transactions. Enable these notifications to spot any unauthorized activity in real-time.
5. Use contactless payments. Whenever possible, opt for contactless payment methods like mobile wallets or tap-to-pay. These methods bypass the need to swipe or insert your card, making it impossible for skimmers to capture your data.
6. Monitor your accounts. Regularly review your checking account and credit card statements. Look for unfamiliar transactions and report any discrepancies immediately.
7. Use chip cards. Chip-enabled cards are more secure than magnetic stripe cards. Skimming devices typically target the stripe, so always use the chip reader if available.
If you’ve been skimmed
If you suspect your card information has been stolen, there are steps you can take to mitigate the damage. First, contact your credit union or credit card company to freeze your account and dispute unauthorized transactions. Next, file a police report so they can apprehend the scammer. Finally, continue to monitor your credit report for suspicious account activity.
Don’t get skimmed! Use the tips here to learn how to spot a card-skimming scam and keep yourself safe.