Card skimming scams have been all over the news in recent years, as more and more scammers take advantage of lapsed security measures employed by some gas stations and other businesses where exterior diy point of sale payment terminals are the norm.
What Are Card Skimmers?
Card skimmers are devices that attach to credit or debit card readers or point-of-sale terminals without the knowledge of the legitimate owner. They typically work by reading the magnetic stripe on the back of a card or sometimes by recording information from the chip. The skimmers often go unnoticed by the average consumer, as they are designed to blend in seamlessly with the original equipment.
These devices can range from small, barely detectable gadgets attached to ATMs to more complex, high-tech installations. Skimmers are also commonly paired with hidden cameras or keyloggers that capture PIN codes or other sensitive data entered by the user.
People who unknowingly run their cards through a skimming device don’t even realize they have been scammed until they start to see fraudulent charges appearing in their accounts. Skimming can also lead to identity theft. With access to personal and financial information, criminals can commit a wide range of crimes, including opening new credit accounts in the victim’s name or draining bank accounts.
Why Are Card Skimmer Scams on the Rise?
As society becomes more reliant on digital payments, criminals have found new opportunities to exploit payment systems. The widespread use of credit and debit cards, combined with the growth of contactless payments, has made skimming devices increasingly popular among scammers.
ATMs and gas station pumps, two common places where skimmers are installed, often lack adequate security features. In some cases, these locations may be poorly monitored, allowing criminals to install and remove skimming devices without being detected.
As technology improves, so does the sophistication of skimming devices. Modern skimmers are more discreet, harder to spot, and can capture data more efficiently. Some devices even transmit stolen information wirelessly to criminals, making them harder to trace.
Many consumers are unaware of card skimming or are not familiar with how to detect it. Criminals take advantage of this by placing skimmers in locations where people are often in a rush or distracted. Some skimming devices are specifically designed to be inconspicuous and blend in with the surrounding equipment.
How to Protect Yourself from Card Skimmer Scams
Before using an ATM or paying at a gas pump, inspect the card reader for any unusual attachments or irregularities. Look for devices that seem out of place, such as loose panels or overlays on the card slot.
Avoid using debit cards and entering your PIN at gas station pumps. Using a credit card will offer you more protection. If you have to use your debit card and PIN, always cover your hand when entering the number. This will help protect against hidden cameras or other surveillance devices that may be used in conjunction with a skimmer.
Regularly check your bank and credit card statements for any unusual activity. Many banks offer alerts for suspicious transactions, which can help detect fraud early.
If you suspect a skimming device at an ATM or gas pump, report it to the bank or business immediately. The sooner the device is discovered, the fewer people will fall victim to the scam.
In our opinion, if your bank account gets compromised due to a card skimming incident, if that business does not follow proper security protocol, it should be the responsibility of the business where the fraud occurred to make good. These businesses with exterior POS card terminals should have surveillance cameras on those terminals 24/7. They should also check these POS terminals for skimming devices and signs of tampering every morning when the business opens. They should ensure that all payment terminals, including ATMs and gas pumps, are equipped with the latest security features. This includes chip readers, encryption, and software updates to defend against skimming attempts.
