How to Protect Yourself From Card Skimmers

In today’s digital age, card skimming has become a prevalent threat, leaving many wondering how they can protect their hard-earned money. With criminals getting craftier, it’s crucial to stay one step ahead. Here’s how to spot card skimmers and safeguard your finances.

What Is Card Skimming?

Card skimming involves the illegal copying of credit card or debit card information using a small device, often discreetly attached to ATMs, gas pumps, or point-of-sale terminals. These devices capture data from the magnetic strip on your card, which criminals then use to create counterfeit cards or make unauthorized purchases. Card skimming costs financial institutions and consumers more than $1 billion each year.

Fuel Pump Skimming

Fuel pump skimming is a common tactic used by criminals to steal your card information. Skimmers and cameras are often discreetly installed inside the fuel pump, making them difficult to detect. According to the FBI, these devices can capture card data from the magnetic strip as you pay for gas and record your pin number if you use debit. Thieves often target fuel pumps located further from the main building of a gas station, where they can install and retrieve skimmers with minimal detection.

To protect yourself:
- Use pumps closest to the station’s entrance
- Use credit rather than debit cards at the pump
- If you use debit, cover the pin pad in case there are cameras
- Use tap-to-pay rather than swiping your card
- Go inside to pay at the register

ATM and POS Terminal Skimming

ATM and Point-of-Sale (POS) terminal skimming are significant threats in today’s digital economy. Skimming devices are often cleverly concealed on ATMs and POS terminals to capture credit card information from unsuspecting users. At ATMs, skimmers can be attached over the card reader slot, while tiny cameras may be installed to capture PIN entries. Similarly, POS terminal skimmers can be placed directly over the legitimate card reader or even embedded within the terminal itself, making them difficult to spot. To safeguard against these threats, always inspect the card reader for any unusual attachments, cover your hand when entering your PIN, and use ATMs located in well-lit, secure areas.

It takes only seconds for fraudsters to install a skimming device. Even ATMs inside stores can have skimmers as fraudsters distract store clerks by requesting items from behind the counter. Once installed, these devices store card data, which can later be downloaded or wirelessly transferred. Some skimming devices even transmit data in real-time to nearby devices.

The Advantages of Using Credit Over Debit Cards

The FBI recommends using credit cards instead of debit cards to mitigate the effects of skimming. Credit cards offer consumer protections that limit potential losses from fraud to $0, whereas debit cards lack these protections and can lead to significant financial losses. The Federal Trade Commission (FTC) warns that unreported debit card fraud within 60 days can result in losing all the money in your account and possibly more. If reported more than two business days after discovery, you could still be liable for up to $500 in losses.

EBT Skimming

EBT (Electronic Benefit Transfer) skimming is a growing concern since 2021, targeting individuals who rely on government assistance programs. Skimmers can be installed on card readers at stores or ATMs, capturing sensitive information from EBT cards since they are not chip-enabled. Criminals often target EBT cash benefits, withdrawing funds shortly after they are deposited, typically between midnight and 6 a.m. on the day the benefits become available. They also exploit Supplemental Nutrition Assistance Program (SNAP) benefits by making bulk purchases of marketable items like baby formula and energy bars during the first 10 days of each month. EBT cardholders face limited protection compared to credit and debit cardholders, often not being reimbursed for stolen benefits.

Staying Safe

While skimming devices can be sophisticated, being vigilant and taking a few precautionary steps can significantly reduce your risk. Always inspect card readers, be mindful of your surroundings, and regularly check your bank statements to ensure your financial security.

References: Skimming | How to Spot a credit card skimmer