Credit card skimmers: how to detect and avoid them

Protecting your credit and debit card information is crucial in today's digital age. A skimmer is a device that thieves use to steal credit and debit card information. It is often installed on card readers at gas stations, ATMs, and other businesses. Thieves can then use this information to make fraudulent purchases.

Credit card skimmers pose a significant threat to financial institutions and consumers, as they quietly acquire your financial information. According to the FBI, these fraudulent activities cost more than $1 billion annually. Keep reading to understand how credit card skimmers operate and learn how to recognize them.

In short:

• Credit card skimmers serve as a method for criminals to illicitly obtain your financial details
• Skimmers can be tricky to spot, but learning what to watch for is useful.
• Regularly keeping an eye on your card transactions enables you to identify any questionable charges. 
• Should you come across any suspicious activities, call your card issuer immediately.

What is a credit card skimmer?

A skimmer refers to a device installed on card readers with the purpose of gathering card numbers. Criminals will retrieve and exploit this data for the purpose of making unauthorized transactions. Prior to card usage, it is advisable to conduct brief visual or physical examinations to detect the presence of skimming devices.

Credit or debit card skimmers can be found in various locations where cards are swiped, such as:

• ATMs
• Convenience stores
• Grocery stores
• Gas pumps
• Department stores

There are times when crafty criminals set up hidden cameras at ATMs to capture your PIN numbers as you enter them. They can also deceive you by placing fake keypads over the real ones. These skimmers and sophisticated devices are difficult to detect as thieves go to great lengths to make them blend in seamlessly with genuine card readers.

Some skimmers are even equipped with Bluetooth capabilities, allowing the thieves to wirelessly transfer your credit or debit card information to their own computer or phone.

How to check for a skimmer 

Initially, credit card skimmers are designed to slip under the radar, making them difficult to detect at first glance. However, we have some valuable tips to help you spot these deceitful devices before swiping your card.

Inspect the card reader

Start by examining the credit card reader for any signs of tampering or damage. Is there any noticeable bulges, does it stick out at an odd angle or looks misaligned on the machine? If you spot any raised surfaces where they shouldn't be, or if one part of the reader is obstructing another part, it could be an indication that a skimmer device has been installed.

If you're unsure, compare the card reader to others at nearby ATMs or gas pumps and be vigilant for any discrepancies.

Wiggle things around

In case of doubt, give the card reader a little wiggle before swiping your card. Real card readers are made to be sturdy and robust. So, if you notice any part of the reader easily moving around chances are it's been illegally set up by a thief. 

Here's a tip for an ATM inspection: if the buttons on an ATM's keypad feel unusually hard to press, it's advisable to not use that ATM and look for another one.

Check the security seal

Gas pumps should come with a security tape sticker over their panel. If the tape looks ripped or broken, don't use the card reader as it might have been tampered with. Check inside the card reader for anything unusual, like a thin plastic circuit board, which could be used to steal card information.

Alternative methods for card skimming

Restaurants can engage in fraud, and spotting it can be tough, especially when cards are given to servers. This scenario provides an opportunity for the server to potentially skim the card using a hidden device before returning it to the customer.

Additionally, although more difficult, criminals can still find ways to install card skimmers on point-of-sale (POS) systems in retail stores. Therefore, it's important to stay alert and carefully examine card readers for any potential signs of tampering.

How to avoid card skimmers

When it comes to safeguarding your financial transactions, a few simple steps can make a world of difference. Whether you're fueling up or withdrawing cash, these strategies will keep you ahead of potential card skimmers:

Gas pump awareness: Maintain vigilance while using your credit card at gas pumps. If anything about the card reader seems off, opt to pay inside the gas station and inform the cashier of your suspicions. This proactive approach can thwart potential skimmers.

Choose bank ATMs: When seeking cash, stick to official bank ATMs rather than the ones found in less secure environments like convenience stores or bars. This minimizes the risk of encountering skimming devices.

PIN protection: Shield your PIN entry with the hand that isn't typing it. This simple act can block any lurking cameras from capturing your code.

Cleaner caution: Be cautious of individuals offering to clean your card's magnetic stripe or chip to improve its readability. Such offers are scams aimed at extracting your card's sensitive information.

What happens when your card is skimmed?

When your card is skimmed, its sensitive information like the cardholder's name, credit card number, and expiration date is stolen. This data is then used to create counterfeit cards that are exact replicas of yours. This means that any transactions made with the fake cards get charged to your original card.

To compound the issue, these scammers might not stop there; they could also capitalize on your compromised credit card information by selling it to other malicious actors.

In essence, the act of card skimming initiates a series of potentially harmful actions that can have financial repercussions and put your personal information at risk.

What to do if your card is skimmed

Keeping a close watch on your bank and credit card accounts allows you to detect any unexpected transactions that you haven't initiated. If you suspect unauthorized access to your account, it's important to take swift action by notifying your bank or credit card provider immediately. 

You can do this by dialing the customer service number found on the back of your card. Once you've reported the fraudulent activity, you might also want to stay involved in the process and inquire about the status of your claim.

Moreover, certain credit cards provide proactive notifications that enhance security. These alerts swiftly inform you when there's a potential unauthorized charge. If suspicious activity arises, and to minimize risks the next course of action often includes the issuance of a new credit card by mail, accompanied by a new card number