A credit card is a convenient payment method with built-in protection against fraud and unauthorized charges. While these protections are valuable, there are many ways thieves can gain access to your credit card information. Many fraud attempts originate online, for example through phishing emails or data breaches, but it also pays to be vigilant when using your card in person.
Card skimming, where thieves steal your data after illegally modifying a company’s card reader, is on the rise. According to FICO data, there was a 40% increase in skimming reports in 2023, with each skimming event involving an average of approximately 200 cards.
However, you can take some steps to protect yourself and your financial information from credit card skimmers. Here’s what you need to know about these devices, how to spot them, and what to do if you think your data has been compromised.
In this article:
What is a credit card skimmer?
A credit card skimmer is a device, such as a fake keyboard, panel or small camera, that is connected to or placed near a payment terminal. When you swipe your credit or debit card, thieves can collect your information, such as your card number, expiration date, card verification value (CVV) and name.
Once they have your information, they can use it to make unauthorized purchases by entering your information online or creating counterfeit cards, or they can sell the information to a third party. All of the above can cause a major headache for a theft victim.
How do you recognize a credit card skimmer?
Skimmers are often placed on or near payment terminals that are outside or easily accessible to the public. Gas pumps and ATMs are common targets, but skimmers can also be found in stores or restaurants, so it’s important to know how to identify one.
Looking carefully at different payment terminals can help you avoid credit card skimmers, although some devices are sophisticated and difficult to spot. If a payment terminal has been compromised, you may notice that the tape on the panel has been cut or that the terminal or keypad are misaligned. Likewise, a terminal with a skimmer attached may look different from other terminals nearby or that you have seen elsewhere. There may be an additional piece of plastic or metal attached to it.
In addition to a visual inspection, you can also try moving parts of a payment terminal before inserting your card. Tamper-proof terminals are well built to protect consumers, so if a keyboard or card reader wobbles or moves easily when you touch it, it could be damaged. If the buttons on a keyboard are difficult to press, there could also be a problem. If you notice a possible problem with a payment terminal, report it to the company immediately.
7 tips for protecting your credit card information
Even with a thorough inspection, it can be difficult to spot a skimmer. But you can also be vigilant in other ways to keep your debit and credit card information safe. Here are some helpful tips to prevent credit card fraud.
-
Pay inside: Since gas stations are a common target for credit card skimmers, pay inside instead of using the payment terminal at the pump. This may take a few extra minutes, but it’s much less of a hassle than having your card details stolen.
-
Avoid risky ATMs: If possible, avoid outdoor ATMs or at gas stations and convenience stores. Please adhere to those of your bank or other nearby banks to conduct transactions.
-
Cover your information: Because small cameras can be used to steal your data, cover your card with one hand and insert it into the terminal with the other. Also make sure you cover the keypad when entering your PIN.
-
Pay via mobile wallet: If it’s an option, consider paying via a mobile wallet. This provides more protection than using a physical card.
-
Keep your card in a safe place: Keep your credit or debit cards in a safe place, such as a wallet or purse, that you keep with you. Don’t leave them in the car or outside at home. This can help prevent unauthorized access.
-
Check your accounts regularly: Log in to your account and regularly review your recent transactions. If you determine that you have not made a particular purchase, please contact your bank or credit card company immediately.
-
Choose cards without liability protection: Most banks and card issuers offer liability protection, which means you won’t be responsible if a thief steals your card information and buys things. Choosing a card with this benefit can provide extra protection.
What should you do if your credit card has been skimmed?
If you suspect your card has been skimmed, take action quickly. Call the number on the back of your debit or credit card to speak to a representative immediately. Notify them of any fraudulent charges that have appeared on your card and discuss how to have them removed. The bank will likely cancel your card and issue you a new one.
After speaking with your bank or card issuer, you can also file a report with the local police and contact the company where you believe the incident occurred. It can be difficult to pinpoint exactly where or when your credit card may have been skimmed, but you may remember a suspicious problem with a payment terminal.
Once you receive your new card, make sure you follow the steps above to protect your information. Consider temporarily freezing your credit report as an extra measure of protection.
Frequently Asked Questions (FAQ)
Does tapping your card protect you from skimmers?
While tapping your card on a payment terminal may provide more protection than swiping or inserting the card, thieves can still gain access to your card information through a process called shimming. This technique involves placing a small, often undetectable device (or shim) into a terminal to record card information. Shimming started when chip cards came into widespread use.
How do you know if there is a card skimmer?
You may be able to tell if a payment terminal has a card skimmer by visual or tactile inspection. If a keyboard doesn’t look right, the keys are hard to press, the tape over a terminal is broken, there are suspicious scratches, or the payment slot looks different from the others, it’s possible the terminal has been hacked.
Can skimmers get your CVV?
Yes, a credit card skimmer can access your three- or four-digit CVV code. When you swipe your card at a payment terminal, your card number, expiration date, CVV and your name are used to send to the payment network. A compromised terminal with a skimmer attached could easily pick up this information and pass it on to a third party with malicious intent.
This article was edited by Alicia Hahn
Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. Details of financial products, including card rates and charges, are accurate as of the date of publication. All products or services are offered without warranty. Check the bank’s website for the most current information. This site does not contain all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.
