The Umbrella

This is the latest in our “How to Spot” series, in this episode we explore How to Spot: Credit Card Skimming Scams.  In these case studies, we highlight an emerging or common scam that we see being used against consumers. The case study includes an example, based on true events, of “How It Can Happen”. And finally, we provide tips on how to avoid becoming a victim. Of course, these scams come in many variations, but this basic knowledge should be helpful in keeping you alert.  Check out some of the other posts from this series here.

What is credit card skimming?

Scammers secretly place unauthorized devices on ATMs, point-of-sale (POS) terminals or gas pumps. They use those devices to steal your data or record the Personal Identification Numbers (PINs). Scammers use that stolen data to pilfer funds from victims’ accounts. The FBI estimates that credit card skimming results in annual losses of approximately $1 billion. It is critical to understand How to Spot: Credit Card Skimming Scams.

Gas Pump Credit Card Skimming

Skimming devices are known to be used on the pay terminal of gas pumps. In fact, is one of the most common locations where these devices are found. It makes sense because the pay terminals are located outside and can be accessed by scammers during off peak hours. Plus, they are usually unattended, thus giving the scammers an opportunity to install the devices without too much scrutiny.

Gas pump credit card skimmers work in different ways, some are not visible to the customer and are connected to the internal wiring of the machine and are much harder to identity. Other devices are more obvious and fit over the top of the original credit card reader. All of the devices record data when you put the credit card into the pay terminal. That data is then downloaded or wirelessly transferred later.

How to Prevent Gas Pump Card Skimming

• Consider paying inside , not outside at the pump.
• If you do use the outside pay option, look closely at the terminal where you insert your card. If the slot where card goes is loose or possibly even pops out when you jiggle it, then avoid it. If it looks suspicious in any way, like it doesn’t match the rest of the terminal, then avoid using it.
• Pick a gas pump near the entrance to the store. Pick a location that is high traffic and is within view of store employees. Scammers are less likely to tamper with those locations.
• Cover your PIN with your hand when inputting the PIN.

Here is a Useful Video on How to Spot a Skimmer on a Gas Pump

ATM or Point of Sale (POS) Credit Card Skimming

Another common location for skimming scams is on ATM cash machines or Point of Sale terminals. Similar to the gas pump skimmers, these types of skimming devices also come in various forms. On ATM’s they often are small devices that physically fit over or into slot of the original card reader. Other times, although less frequently, they are places inside the ATM. Sometimes small cameras are used in or near the ATM in order to record PIN numbers. And, in yet another variation, a type of digital film or pad is used as an overlay on top of the keypad.

How to Prevent ATM or POS Terminal Card Skimming

• Similar to gas pumps, be sure to pay close attention to the area in and around the card slot of the ATMs or POS terminals. Be on the lookout for suspicious materials that don’t match, or if parts are broken, loose, crooked or scratched. If you pull at any of the edges of the card reader, does it lift up? Avoid using it if any of that is true.
• Cover the keypad when you enter your PIN.
• Try to use devices from well-known, reputable banks and financial institutions. When possible, only use ATMs located in high traffic, well-lit locations.
• Most debit and credit cards now use chips instead of relying upon the magnetic strip. If you have a legacy, magnetic strip card, consider switching to the chip version.
• If anything suspicious occurs, such as an incomplete or unrecognized transaction, immediately begin monitoring your bank or credit card account and contact your company.

Here is a Useful Video on How to Spot a Skimmer on an ATM