Card skimming is a type of fraud where devices illegally capture your payment card data at places like ATMs or fuel pumps.
Skimming specifically occurs when devices illegally installed on or inside ATMs, point-of-sale (POS) terminals, or fuel pumps capture card data and record cardholders' PIN entries. This sophisticated form of theft intercepts information directly from the magnetic stripe of a card and the PIN entered by the user.
How Card Skimming Works
Criminals employ various methods and devices to perform skimming:
- Skimmers: These devices are often overlays placed on card readers at ATMs, POS terminals, or fuel pumps. They are designed to look like part of the legitimate machine but secretly read and store the card's magnetic stripe data as it's inserted.
- Hidden Cameras or Keypad Overlays: To capture the PIN, criminals might install tiny cameras hidden near the keypad or place a fake keypad overlay on top of the real one. This allows them to link the stolen card data with its corresponding PIN.
The Aftermath: What Criminals Do
Once the card data and PIN are captured through skimming, criminals don't just keep the information; they weaponize it:
- Creating Fake Cards: Criminals use the data to create fake payment cards. They transfer the stolen magnetic stripe data onto blank cards (often referred to as white plastics or counterfeit cards).
- Unauthorized Transactions: With the fake card and the stolen PIN, criminals can then make unauthorized purchases or steal from victims' accounts. This can include withdrawing cash from ATMs or making purchases in stores before the victim even realizes their information has been compromised.
| Component | Description | Role in Skimming |
|---|---|---|
| Payment Card | Credit or debit card with magnetic stripe and chip | Target of data theft |
| Skimming Device | Illegally installed reader overlay or internal device on terminals/ATMs | Captures magnetic stripe data |
| PIN Capture Device | Hidden camera or fake keypad overlay | Records the cardholder's PIN |
| Fake Payment Card | Counterfeit card created using stolen data | Used by criminals for fraudulent transactions |
Protecting Yourself from Skimming
While the reference focuses on defining skimming, understanding where it happens can help in prevention:
- Be vigilant when using ATMs, fuel pumps, or POS terminals, especially in less monitored locations.
- Wiggle the card reader area to see if anything feels loose or looks out of place.
- Cover the keypad when entering your PIN.
Card skimming is a serious form of fraud that directly compromises your financial security by stealing your card information and PIN for criminal use.
