What is a Credit Card Skimmer and How to Spot One

What is a Credit Card Skimmer?

A credit card skimmer is a small, illegal devices that sit over actual card readers in self-service sales terminals to access your personal information. They are made to blend into the rest of the device and are therefore difficult to identify. According to the latest FICO information, the amount of skimming cards that have been compromised has increased by 96% in the period from 2022 to 2023.

How do Credit card Skimmers Work?

A credit card skimmer scans the magnetic strip of your card whenever you plug it into the terminal. It can also record your PIN if a criminal has placed a fake keypad over the actual one or set up an invisible camera. The thief will then take the data and either sell the data or make use of it. In certain instances, the devices can wirelessly transmit the information.

You might encounter these fraudulent devices at gas stations ATMs, metro stations, ticket kiosks, and various other points-of-sale (POS) devices which are generally unmanned. Credit card skimming can be described as ATM skimming as ATMs are a popular target. If your card disappears from your sight in an eatery or department store the employee may utilize a skimmer in order to obtain your card details and other personal information.

Also read: What Is Poshmark Safe: 6 Common Poshmark Scams You Should Know

How to Spot a Credit Card Skimmer

While credit card skimmers have been made to be invisible, it is possible to spot them to protect your credit card information securely and also protect yourself from identity theft. One method of identifying skimmers is to employ a scan technique, which will teach you to be aware when stepping up to an ATM or any other unsupervised POS terminal.

This is a brief explanation of the scan method that you can employ to determine if a card skimmer is present:

• Scan your area to find hidden cameras directly towards the keyboard. ATMs usually have cameras for security purposes, so don’t be frightened when you spot one nearby. Just be sure to protect your hands when you enter your PIN.
• Compare the reader on the card and keypad with all the components of your device. The styles and colors must be identical, and the images should be clear and aligned.
• Assess for obvious indications of the tampering. The panels could be damaged or scratched, or the security seal could be damaged.
• The udge the reader of your card and keypad. Keypads that are fake and card skimmers are intended to be removed, therefore If they seem loose, you might have found the presence of a Skimmer.

If the machine does not appear like it should, tell the clerk in charge (if there’s one) and take it to a different place.

How to Avoid Credit Card Skimming

In addition to understanding how to identify the card skimmer device and how to avoid it, you can alter your habits to prevent becoming a victim of this type of credit card fraud. Here are some ways to be cautious to help protect yourself, your funds, and possibly even your identity.

Pay inside or take cash

Identity thieves seek out undetected and unhindered access to point of sale terminals, where they’re less likely to be discovered. This is why gas pumps are attractive because they’re not under the constant surveillance of clerks.

In lieu of paying your fuel at the pump or by using an ATM, spend the time to enter the store to complete the transaction. If you pay at the POS terminal, which is located close to a cashier and a clerk, you’re less likely to be confronted by an Skimmer.

If you’re unable to enter to complete the transaction, be sure to check the location of your business to ensure that there aren’t any skimmers. It’s generally more difficult for scammers to set up a skimmer machine in well-lit areas where a lot of people pass through.

Use a contactless credit card

You should use a credit or debit card with a chip if you own one. Here’s why:

If a criminal steals the card details and steals your card information, it could be an avenue to take money from accounts that you’ve linked such as savings, checking retirement, credit lines.

Your risk of being held responsible for fraudulent electronic funds transfers is limited to $50 if you notify them within two working days. However, if someone else uses your account but you fail to immediately report the theft after sixty days have passed, then you might not be reimbursed in any way.

Utilizing a credit card equipped with chip technology or a different type of payment that is contactless, such as Apple Pay, could make it more difficult for thieves to steal your information at all. This is because chip cards generate an encrypted transaction code each time you make a purchase that is difficult for a criminal would duplicate. If a person who steals your information obtains your credit card details, they can use this account to charge you without authorization, instead of an account linked directly to your bank account.

Cover and Check the Keypad Before Entering Your PIN

Alongside skimmers, Identity thieves can also install hidden cameras to steal your personal identification number (PIN). To protect your PIN, you can use the other hand to shield your fingers while you input your PIN into the machine.

Another method for identity thieves to gain access to your PIN is through placing overlays of the keypad on the keypad that capture your keystrokes. Prior to entering the PIN, pull at keys on the side and look for overlays.

Check your accounts frequently

Check your bank statements regularly to spot fraudulent charges and bank scams.

Set up alerts on your checking account and credit cards. Set alerts that notify you when a charge exceeds $100 or whenever there’s a “card that’s not there” transaction. Your phone will inform you by text or email. It’s only a matter of minutes to recall whether you paid for the transaction.

Also read: Why do Scammers Use Smartphones to Access Your Data? | Ways to Protect Yourself

What Should You Do if Your Credit Card Has Been Skimmed?

If a thief in the identity industry gains access to your card data by skimming it, they may use it to purchase items online, create fake credit card numbers, and sell your information via the dark web.

If you spot suspicious charges on your account or suspect someone has skimmed the credit limit of your card, you should follow these steps:

• Alert your credit card issuer: Report suspicious activity the card company should be informed immediately. A majority of credit cards offer zero risk of fraud, which means that you won’t be held accountable for the cost of reimbursing the fraudulent charges if you notify your concerns within the 30 days.
• Place a credit freeze on your report: A credit freeze stops criminals from using the information in your credit report to open new accounts or to create new lines of credit in your name.
• Report a crime to the police: Report the credit card skimming event to your neighborhood police department. If you suspect a possible credit card skimmer in a particular area, you must report it right away so that police can investigate and prevent fraud from occurring to anyone else.

Secure Your Account and Identity from Scammers

Credit card skimmers may be difficult to spot and to avoid. Ues a effective identity theft protection program to helps monitor your data and credit cards. It will notify that your personal information may be exposed or appear on dark websites.