Security Corner Blog

What Is a Card Skimmer?

Skimmers are hard-to-spot devices that thieves place over or inside card reading machines at legitimate retailers to directly copy card and PIN information. They then use the stolen data to make fraudulent purchases or, in the case of debit cards, clean out a victim’s bank account.

Skimmers can exist anywhere credit or debit cards can be swiped, including:

• ATMs — A common target, especially if it’s on an isolated street. Criminals have more time to set up hidden cameras or fake keypads to capture your PIN. 

• Gas station skimmers are high-risk, as thieves can install the devices internally, making them harder to detect.

• POS skimmers can be concealed within the point-of-sale terminals or handheld devices at retail stores or restaurants — possibly even by pliable staff members.

• Outdoor vending machines may have skimmers placed over the card reader, or they could be inserted into the card slot.

• Self-checkout kiosks are another prime location for skimmers, as they service customers using cards without the oversight of staff members.

• Train or metro station ticket machines may also attract thieves that lurk in high-traffic areas.

How Do Card Skimmers Work?

The black magnetic stripe on the back of a credit or debit card, also known as a magstripe, contains encoded information about the card and its linked account. A credit card skimmer can read the magstripe, giving thieves unbridled access to its data, which includes:

• Cardholder's name: An essential aspect of identity scams that enables thieves to make fraudulent transactions or create counterfeit cards in your name.

• Card number: The unique 16-digit number or primary account number (PAN) that is required to make purchases. 

• Expiration date: Another indispensable element for transactions, thieves can use this data to create a functional counterfeit card or to dupe customer support staff on scam calls to the card issuer.

• Security code (CVV/CVC): Before confirming online purchases, thieves will need to enter the three or four-digit security code found on the back of your card.

Some perpetrators also steal PIN codes by installing inconspicuous cameras. A counterfeit overlay number pad — that records numbers when people type — is another ploy.

How to Protect Yourself

Inspect for signs of skimming devices:

• The keypad feels uneven or soft.

• The machine is dented or looks tampered with.

• Some parts feel loose when you grab and wiggle the device.

• Some parts look out of alignment or detached from the rest.

• Some parts are a different color or style than the rest of the machine.

Check for Security Seal

At gas pumps, look for possible skimming by checking the security seal near the reader. If there’s a broken seal, that’s a sign that there might be a skimmer installed. And it’s a good idea to move to another gas pump or pay inside and tell an associate.

Look for Hidden Cameras

Hidden cameras might not be as easily identifiable as other skimming products. At the gas pump or ATM, inspect what’s around the card reader. Look closely above it to see if there are any holes looking down on where you would insert your card. There might be a hidden camera capturing you entering your PIN. Keep in mind that ATMs often have security cameras built into them.

Use Mobile Wallet

An alternative to swiping your card is paying by mobile wallet including Apple Pay, Samsung Pay, or Google Pay. This form of payment is secure because your credit card information is tokenized and rendered useless if a thief were to get a hold of it.

Pay Inside

If you are at a gas station that doesn't accept mobile wallet or you aren't sure if the machine is safe to use, go inside the service station to pay. Taking an extra minute to walk inside could save you a whole load of problems later on.

Only Use ATMs You Trust

Fraudsters tend to target ATMs in secluded areas, as it’s easier for them to remain undetected when installing a credit card skimmer.

To avoid having your card “skimmed,” make sure you use ATMs from trusted financial institutions. Better yet, avoid paying fees by using one of the 100,000 free ATMs within our nationwide network.

Monitor Your Account Statements Regularly

Frequently monitor your accounts for unauthorized charges, perhaps even reviewing your accounts online daily. If you suspect you are a victim of a card skimmer, notify your bank or credit card issuer immediately so they can put a stop to your account and issue you a new card.

If your account has been compromised, report it to your financial institution immediately. You can do this by calling the number on the back of your card. After reporting any fraud, you may want or need to follow up on the status of your claim.

This content is for informational purposes only.

Sources: ¹Credit card skimmers: How to spot & avoid them ² What Is a Credit Card Skimmer? How To Spot & Avoid Skimming