Financial Education Resources

What is ATM skimming?

ATM skimming is a type of debit and credit card fraud. Criminals install hidden recording devices in order to steal credit and debit card information. Once the card data is captured, criminals use it to create counterfeit cards or to make unauthorized online transactions.

 Methods of ATM skimming

Thieves employ several techniques to steal data that’s embedded in the magnetic stripe on credit and debit cards:

• A plastic overlay placed over the ATM keypad captures PINs as they are entered.
• An overlay placed over the card insertion slot records the data on the magnetic stripe.
• Tiny cameras placed on an ATM record keypad entry and your fingers as you type.
• An overlay that covers the whole ATM faceplate is embedded with cameras and card-slot and keypad overlays.

In some cases, skimming devices don’t even need to be physically connected to the card reader. Instead, as they collect consumers’ data they transmit the information to the thief via Bluetooth technology.

Even chip-enabled payment cards, which are more secure than magnetic stripe cards, are vulnerable to theft. By placing a super-thin shim between the chip and the chip reader inside the ATM, thieves can capture your PIN and other card information. These devices are called  “shimmers,” and as chip technology becomes more prevalent, they are starting to replace skimmers as thieves’ choice tool.

 How Common is ATM skimming?

FICO reported a 77% increase in cards impacted by skimming in 2023, compared to 2022. There was a 368% increase in compromised cards from 2021 to 2022. It’s a scam that costs consumers and banks over $1 billion each year.

Ways to avoid ATM skimming

To avoid becoming a victim of ATM skimming, follow these tips:

• Examine the ATM before you use it to see if anything looks out of place. Check to see if anything is loose or damaged. You should also check for scratching around the card slot as well as adhesive, tape, or glue residue.
• Check the card reader and keypad. If anything seems out of place or poorly attached to the ATM, gently tug on it. If it moves or comes away from the ATM, it might be a skimming device.
• Look for hidden cameras. Small holes above the ATM screen or keypad may contain a pinhole camera to capture your PIN.
• Protect your PIN by shielding your hand as you type it onto the keypad. If there is a pinhole camera, this will block visibility.
• Monitor your accounts daily. If you notice any suspicious transactions, notify your bank as quickly as possible.
• Set up alerts for unusual activity.

There are also some physical, common-sense ways to avoid becoming an ATM skimming victim:

• Be aware of your surroundings. Scammers are more likely to target an ATM that is in a high-traffic area.
• Don’t use ATMs located in dark, out-of-the-way places, in bars and restaurants or in areas with lots of tourists. Go to your bank or inside a store to use an ATM.
• If the ATM doesn’t immediately return your card after the transaction, waste no time in reporting it to the card issuer.
• Look over the ATM for signs of skimmers or ask the store manager to do it for you. Don’t use ATMs that have damaged or loose parts or look as if they have been tampered with.

Stay vigilant

Whether you are using a bank ATM or paying for merchandise in a store, there is always a risk of fraud. Minimize your risk by following the tips and advice outlined here.

If you suspect fraud, contact your bank immediately.