Card Skimmer Fraud: What Is It and How to Stay Safe

Card skimmer fraud—often just called skimming—is a type of theft where criminals steal your credit or debit card information using a hidden electronic device called a skimmer. These devices are secretly installed on everyday payment terminals like ATMs, gas pumps, and point-of-sale (POS) systems. Once your data is stolen, it can be used to make fake cards, drain your bank account, or rack up unauthorized online purchases.

How Card Skimming Works

Skimmers are designed to blend in, which makes them difficult to spot. Here’s how the process usually unfolds:

• Data Capture. When you swipe or insert your card, the skimmer reads and stores information from the magnetic strip or the EMV chip (in this case, known as a shimmer).
• PIN Theft. To steal your PIN, criminals may install a tiny pinhole camera nearby or place a fake keypad on top of the real one to record keystrokes.
• Data Retrieval. The thief will either come back later to get the device or will use wireless technology like Bluetooth to get the data remotely.
• Fraudulent Use. The stolen information is used to make cloned cards, access accounts, or sold on the dark web.

How To Protect Yourself From Card Skimming

A little awareness goes a long way when it comes to preventing skimming or shimming.

• Inspect the terminal. Before using a card reader, look for anything odd - loose or crooked parts, mismatched colors, or a keypad that seems thicker than usual. Give the reader a gentle wiggle; legitimate parts shouldn't move easily.
• Check for security seals. Many gas pumps have security seals on their panels. If the seal is broken or says "void," don't use it and notify the attendant.
• Cover your PIN. Always shield the keypad with your hand when entering your PIN to block any potentially hidden cameras.
• Use safer payment options. Tap-to-pay and mobile wallets use tokenization and are far more secure than swiping (but still be on the lookout for shimming devices). Choose credit card over debit card - they typically offer stronger fraud protection. Pay inside the store rather than at the outside terminal, which is more likely to be tampered with.
• Monitor your accounts. Check your statements regularly and enable transaction alerts so that you're notified of suspicious activity right away.

What To Do If You're A Victim

If you think your card information has been skimmed, act fast:

• Contact your credit union or card issuer immediately to report the fraud, cancel the card, and dispute any unauthorized charges.
• File a police report to create an official record, which can help during the recovery process.
• Protect your credit by placing a fraud alert or credit freeze with one of the three credit bureaus, Equifax, Experian, or Transunion, to help prevent further identity theft.

Staying informed and alert is your best defense. A quick glance at the card reader and a few smart habits can save you a lot of stress down the line.