5 Min Read | Published: May 29, 2024
Credit Card Skimmers: Tips to Spot and Avoid Them
Discover how to identify and avoid credit card skimmers to help protect yourself from fraud. See what you can do if your card has been skimmed.
At-A-Glance
Credit card skimmers are devices that criminals use to steal credit and debit card information.
While credit card skimmers may be difficult to spot, knowing their telltale signs can help you avoid using one.
It’s important to be aware of where you use your card. If you notice anything suspicious at a point-of-sale system, gas pump, or elsewhere, it’s advisable to avoid using it.
Credit card skimmers are devices that allow thieves to steal card data and use it for fraudulent activities. In this article, we’ll discuss the dangers of credit card skimmers, provide tips for identifying and avoiding them, and offer strategies for protecting your card information.
What Is a Credit Card Skimmer?
A credit card skimmer is a device that may be illegally installed on point-of-sale (POS) systems, fuel pumps, and ATMS (automated teller machines). When a customer swipes or inserts their credit or debit card, the reader may “skim” or capture their confidential card information.
Sometimes placed at gas stations, grocery stores, convenience stores, and ATMs, a credit card skimmer can allow a thief to make unauthorized online purchases, withdraw cash from an ATM, create a counterfeit card, or even sell the card data to someone willing to buy it.1
Tips to Spot Credit Card Skimmers
Credit card skimmers are designed to be hidden, so you might not notice one at first. However, here are some steps you’ll want to take before you swipe your debit or credit card.2
- Inspect the Reader
Take a close look at the card reader. If you notice any piece that seems out of alignment, a skimmer may be installed.
- Feel the Reader
It’s also a good idea to feel around the card reader. If it’s easy to wiggle and seems like it’s loose in some areas, a skimmer might be present.
- Check the Security Seal
Some gas pumps use security seals over the lockable door where the credit card slot is. If this seal is broken, a skimmer may be installed.
- Compare With Other Card Readers
Compare the card reader with other readers around you. If you believe something seems off, you should go elsewhere to pay.
Protect Yourself Against Card Skimmers
Here are some ways you can help to protect yourself from credit card skimmers:3
- Be Careful With Your Personal Identification Number (PIN)
If possible, don’t use your PIN when you pay with a debit card. In the event a PIN is required, remain aware of your surroundings and cover your hand while entering them as there may be hidden cameras around as well.
- Pay Inside the Gas Station
While it may be more convenient to swipe your card outside while you’re at the pump filling your vehicle up with gas, going inside to pay can help you to bypass potential skimmers.
- Set Up Alerts
Most card issuers will allow you to set up alerts if any purchases seem suspicious. These alerts can help you monitor potentially fraudulent activities and ensure that nobody else is your card without your knowledge.
- Be Selective With ATMs
When using your debit card at an ATM (or taking out a cash advance with a credit card), opt to use official banks or credit union ATMs, rather than ATMs located in convenience stores or elsewhere.
Did you know?
American Express offers fraud protection measures to help protect Card Members from credit card fraud.
What to Do If Your Card Gets Skimmed
If you suspect your credit or debit card has been skimmed, contact your financial institution and report the incident to them as soon as possible. Then, cancel your credit card. Keep in mind that your liability is limited in the case of fraudulent activity, but this may depend on how quickly you report the fraud or theft.4
You may also want to report the issue to the Federal Trade Commission (FTC) to help protect others from being scammed.
Did you know?
Credit card skimming results in more than $1 billion in losses per year for both financial institutions and consumers, according to the Federal Bureau of Investigation (FBI).5
Frequently Asked Questions
Credit card skimmers may often blend with the original components of the machine. However, they often take the form of an attachment that may look and feel cheap or flimsy when compared to the official card terminal. Gently wiggling the attachment can help you to ascertain whether it’s loose; a telltale sign of a card skimmer.6
Most skimmers can read a magnetic stripe card, but not chip data. Chip cards were designed to be safer. However, these cards may be at risk of fraud through “shimming,” which is where criminals use a thin reader that fits into the card reader slot to capture card information from the card.7
Compared to swiping and inserting, contactless credit cards (cards equipped with “tap-to-pay” technology) are less susceptible to credit card skimming. However, you should still be careful with tap-to-pay as criminals are continually coming up with new ways to steal credit card data.8
The Takeaway
Credit card skimmers are devices that thieves use to steal debit and credit card information. They may be installed at ATMs, point-of-sale systems, gas pumps, and other places where you might use a card. Fortunately, there are some ways that you can spot credit card skimmers, which could help to reduce your risk of having your card information stolen.
1,2,6 “Credit Card Skimmers: How to Spot And Avoid Them,” Time
3 “How To Spot A Credit Card Skimmer,” Forbes
4 “How Credit Card Information Is Stolen And What To Do About It,” Forbes Advisor
5,8 “How To Spot A Credit Card Skimmer,” USA Today
7 “Can chip cards be skimmed?,” Bankrate
Anna Baluch is a personal finance writer from Cleveland, OH. She enjoys helping people from all walks of life make smart financial decisions. Her work can be seen on Credit Karma, Forbes, LendingTree, Insurify, and many other publications. Connect with Anna on LinkedIn.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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