On our blog we like to cover topics concerning fraud and financial risk. We believe it’s important that our readers and our customers stay informed, so that they can remain vigilant and protect themselves against fraudsters and thieves.
In this blog entry, we’re going to cover ATM skimming. We’ll discuss definitions, methods, and what to do if your card is skimmed.
You probably know the term ‘skimming’ to refer to reading a text lightly in order to absorb information quickly. Criminals apply this skill in a financial sense, stealing data from card-holders or ATM users without the user even knowing.
Skimming can also occur on other devices:
Users often have their information stolen by paying on a point of sale (POS) that’s been tampered with. The device is altered in a way that it saves the information stored on the payment device. Most frequently it is the credit card numbers and CV that get copied over.
Since much of skimming occurs when account holders withdraw money from ATMs, this is where the risk often lies. An ATM skimmer refers to a device criminals attach to ATMs, which enables them to steal a user’s information.
Skimmers are usually magnetic stripe readers stuck somewhere on or in the card reader. It’s often also paired with a device like a tiny video camera or fake PIN pad installed on top of the genuine one.
Thieves usually build these devices and custom install them into certain ATMs. Whether they’re obvious or inconspicuous depends on the skill of the builder. Your data might be saved onto the device, which means the thief needs to come and collect it manually, or it may send your information straight to a remote device.
Thieves use different methods to employ skimming tactics, as we’ve briefly mentioned above. We’ll now go into detail about these methods and how they’re employed.
Fake or tampered-with credit card readers are one of the most common skimming methods. Devices attached to ATMs or card readers at common establishments (restaurants, petrol stations, etc.).
Thieves can then use these devices to obtain stolen card information and make fraudulent purchases. Ideally, your bank will notify you of suspicious behavior and you’ll be able to cancel the account, but this may not always be the case.
Keypad overlay skimmers are placed over the top of existing keypads on ATMs or point of sale devices. Ideally, it looks like a normal overlay so the customer won’t notice the difference.
When the customer inputs their pin and other details, the overlay secretly sends this information to a stored database on the device, or directly to the thief via bluetooth or some other remote technology.
When criminals install skimmers into ATMs, they may also install a tiny camera. This is designed to record the account holder entering their PIN so that thieves won’t be blocked from accessing machines or using POS terminals with your information.
The camera might be internal, or else installed above the keypad externally.
A lot has been done in fraud prevention to protect account holders from skimmers, which meant criminals had to get craftier with their methods. Card manufacturers progressed from the magnetic strip to chip technology, which you can see above the line of numbers on your card.
Instead of sitting on top of a card reader the way a skimmer does, shimmers are inside the card readers. These very thin devices can’t be seen by the human eye from the outside, making them extra difficult to detect. The shimmer is then able to read the information from the chip on your card, in much the same way the skimmer would read it from your magnetic strip.
When your card is skimmed, the information is either stored on the device used, or sent directly to the thief via remote technology. The thief then has the opportunity to use your card or account information in a variety of ways:
Skimmers and shimmers can be difficult to spot, the latter much moreso, but they can be identified with a physical visual check.
Before using an ATM or other payment terminal, check for alignment issues between the card reader and panel beneath. The skimmer might make the panel stick out at an odd angle or look unnaturally raised.
Try to look inside the card reader to see if anything has been inserted. This might be the circuit board designed to steal your information and route it back to the thief.
Basically, what you’re looking for is an abnormal payment terminal or ATM. One that has in some way been doctored or altered or just doesn’t look right.
If you find what you suspect to be an ATM or payment terminal skimmer, notify every relevant person you can.
If the skimmer you find is in the payment terminal of a merchant or on a petrol pump, notify the merchant immediately and they will take care of the rest. You can also notify the authorities if you suspect the merchant is involved in the skimming operation.
If, instead, you notice a skimmer installed into an ATM, notify the branch that owns the machine. If the branch is closed at the time you find something, contact the police instead.
Skimming can happen at home or abroad, so it’s important to know first how to prevent it from happening, and then what to do if it does.
When going traveling, you’re at risk of skimming because you’re in unfamiliar environments and may not be as protected as you would be at home. You might also be more likely to use a credit card as many people do while traveling. Fortunately, there are a few things you can do to reduce the likelihood of it happening:
You’re still at risk of skimming in your home country, so it’s important to remain vigilant:
An unfortunate fact of financial life is, we can be as vigilant as we want to be, but we still may fall victim to fraud. Fortunately there are always things a person can do once they have fallen victim to skimming, to minimize the harm done.
In case you want to dive deeper into the topics of fraud and cybersecurity, the following resources might be something for you:
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