Every ATM transaction involves a certain level of trust.
You need to trust the banking institution with your card information, trust the machine with your personal identification number (PIN), and ultimately, you need to have confidence that you’ll get your money.
Aside from high transaction fees, most ATM withdrawals are worry-free – except when criminals get in the middle.
Card skimming is estimated to cost consumers and banking institutions more than $1 billion each year, according to the FBI. It occurs when crooks install devices on ATMs, gas pumps or point-of-sale terminals and then steal your data in order to steal your money.
In December 2023, federal authorities worked with Romanian law enforcement to arrest 48 people in connection with an ATM skimming operation that victimized thousands of people in Southern California. Over 8,000 stolen credit card numbers were recovered, and agents seized a large number of skimming devices.
But the problem is worldwide.
“When combined with a nearby concealed camera to record your personal identification number (PIN), the thieves can get everything they need to drain your account or to make unauthorized purchases,” the U.S. Department of Treasury says. “In addition to using the information directly, thieves may sell your information to others.”
These crimes are becoming increasingly elaborate, high-tech, and harder to detect.
“Skimming and Shimming are new words consumers need to get familiar with, and they are not a new dance move; they are serious fraud that can catch you instantly when you are multitasking,” tech advisor Marva Bailer told KTLA 5 News. “The fraudster attaches an almost undetectable device to the card reader. When you insert your card, they then capture your data, including PINs. Chips and strips are both vulnerable.”
What card skimmers look like
Card skimming devices come in many shapes and sizes, and criminals are always devising new and innovative ways to conceal them.
The gadgets are typically installed on the outside of machines and are designed to look like they belong there. Sometimes, criminals will install tiny cameras that record you entering your PIN, or install an artificial keypad over the real one to record your keystrokes.
Here are some of the devices that have been seized by law enforcement:
How to spot a skimmer
Before inserting your card into a reader, experts recommend taking a moment to examine the terminal. Look around for hidden cameras and check the card slot to make sure it is firmly attached and not damaged or scratched. Pull at the edges of the keypad before entering your PIN.
Northwest Community Credit Union says you should look for these red flags:
- Tape and/or sticky glue residue on any part of the ATM
- Bulkiness on the card insert area or the PIN keypad
- Anything hanging from the ATM
If you notice any of these issues, don’t use the card reader and report it to the bank or law enforcement, or both.
Even if you don’t see any red flags, experts say you should stand close to the machine and obscure the keypad in case someone is recording you. Also, beware of strangers offering to help if the ATM appears disabled.
And regardless of whether or not you think you’ve been victimized, the Treasury Department says everyone should regularly review their account statements for any suspicious activity.
The government’s Office of the Comptroller of the Currency has created a website, helpwithmybank.gov, to help consumers with a wide range of banking questions, including how to deal with fraud.