What is ATM skimming?

Quick insights

• ATM card skimmers are malicious devices placed on ATM machines to collect card information for fraudulent purposes.
• Card skimmers can often be identified from signs of tampering, mismatched materials or colors or loose parts.
• If you believe that your card has been skimmed, contact the issuer immediately and file a report with local authorities.

With millions of everyday card users increasingly concerned about security, fraudsters have had to update their technology to continue their crimes on plastic. One popular form of payment card fraud is called “skimming.” Card skimming occurs when devices like ATMs, gas station fuel pumps or point-of-sale machines are covertly modified to steal card numbers and PIN entries. Unfortunately, ATM skimming machines can be difficult to detect and many people fall victim to this crime every day. In this article, we’ll discuss how to tell if an ATM has a skimmer and what to do if you encounter one.

Types of ATM skimming machines

There are several kinds of skimming devices commonly installed on ATMs, and it only takes a moment for a determined scammer to place one. Criminals may look for an opening to tamper with an ATM or create one, such as by distracting a store clerk or teller with a request. Skimming devices are often very discreet and convey information wirelessly in real-time. A convincing skimmer may remain in place collecting card data for days, weeks or even longer before being removed.

Skimmer card readers

Classic ATM card skimmers are external devices that fit atop the ATM’s card-reading port and collect information from the magnetic strip (also known as a “magstripe”) on any cards inserted. Very thin skimming devices (sometimes called “shimmers”) can also be inserted into the card reader directly or placed elsewhere inside the terminal to pull data from a card’s chip. In some cases, malicious devices will be attached to the exposed cables of a freestanding ATM. These skimmers can read and collect information such as the cardholder’s name, card numbers, CVV code and expiration date when you try to deposit or withdraw cash.

Cameras and keypad loggers

Pinhole cameras are also common tools in an ATM skimming scheme. These small cameras can be placed inconspicuously to gather footage of victims' keystrokes on the PIN pad. Keylogging pads can also be overlaid on top of the pin pad to collect cardholder’s PIN entries. When both the card information and a PIN number have been collected, bad actors can easily access and drain the associated bank account.

What do skimming devices look like?

Externally mounted skimming devices are typically made to blend in with the existing parts of the ATM. While some devices are virtually undetectable, others can be discovered with careful visual inspection. An ATM that’s been compromised with a skimming device may appear to have mismatching materials, misaligned parts, scratches or holes. When a machine has been tampered with, you may notice that a section of the machine (especially the card reader) is loose, wobbly or easily removed. Adhesives or other kinds of residue on the ATM’s surface can also be an indication of meddling.

How to avoid ATM skimming

It’s understandable if learning about skimmers makes you a bit hesitant to use ATMs. Fortunately, there are many ways to help protect yourself from this type of card fraud and safely access your account.

• Conduct a visual inspection: Taking a moment to inspect card readers before inserting your card could help you identify fake ATM machine parts and signs of tampering.
• Always cover the keypad: Even if nobody is around, use your other hand to cover your keystrokes as you enter your PIN. This can help prevent potential pinhole cameras from recording your keystrokes.
• Use ATMs in monitored locations: Any ATM can become compromised, but those in well-lit, highly monitored environments are less likely to be tampered with. When possible, it's better to use an ATM located inside a bank branch.
• Go contactless where possible: With tap-to-pay services becoming more common, some ATMs will now allow you to access your account with a mobile wallet or contactless card.

Keep in mind, ATMs are just one of the places card data can be surreptitiously collected. Card skimming is also common at other kinds of card readers, including point-of-sale readers in stores, restaurants, at parking meters and at gas pumps. One of the best ways to avoid skimmers in these locations is to use cash or tap-to-pay. Activating account alerts, keeping your profile up to date and regularly reviewing your transactions can also help you identify unauthorized card use sooner.

What to do if you suspect ATM skimming

If you’ve come across an ATM that appears to be tampered with, the first thing to do is to inform the shop clerk or bank branch workers. Because skimmers can be very hard to detect, and using an ATM is such an everyday activity, many victims of fraud only notice suspicious elements after inserting their card. Even more frequently, the skimmer goes entirely undetected, and it’s not apparent that card data has been stolen until fraudulent transactions begin rolling in.

If you believe your card has been compromised, you should contact your card provider to report the incident. Your card can then be frozen and re-issued, and any fraudulent charges noted and reported to law enforcement.

In conclusion

Though ATM card skimmers are often difficult to detect, there are many things you can do to protect yourself from this type of card fraud. Inspecting each ATM you interact with, avoiding vulnerable ATMs and opting for contactless card activities are some of the ways you can avoid skimmers.

As payment technology progresses, so will the ways criminals look to exploit the systems in place. By staying informed and keeping an eye on your transactions, you can put yourself on strong footing to avoid skimmers out in the wild.