As fraud is on the rise, it’s important to know the signs of fraudulent activity and precautions you can take to keep your money and personal information safe. One of the most common, yet hard to detect tactics of financial fraud is card skimming. Here’s what you should know to help protect yourself from becoming a victim.
What is skimming?
Skimming happens when a fraudster places a small device over a card reader- usually on ATMs, gas station pumps, and other point-of-sale systems. The illegal devices then capture credit or debit card information immediately after a customer swipes or inserts their card. The victim’s card information is then stored by the fraudsters and is used to create counterfeit cards or make unauthorized transactions.
How to spot skimming devices
Be on the lookout for these signs before inserting or swiping your card when using a card reader:
- Suspicious or unusual keypads- If the keypad feels thicker than usual or looks odd, it could be a fraudulent overlay to capture card information.
- Loose card slots- If the reader feels loose, easy to move back and forth, or bulky, these could be signs that a skimming device has been placed on the card terminal.
- Blocked security seals- Sometimes gas pumps have a security seal that will show when a device has been tampered with. If you see a broken or ripped security seal, trust your instincts and do not use that pump.
- Know that even if you’re observant, many card skimmers are virtually undetectable by consumers. If you feel uneasy about using a machine, it’s best to err on the side of caution and use other options like cash.
How to protect yourself against skimming
- Enable transaction alerts- Set up mobile alerts and get notified whenever your card has a transaction over a dollar amount of your choice.
- Use contactless payment options- Using tap-to-pay, digital cards, and mobile wallets is more secure than inserting or swiping your card into a terminal.
- Monitor your accounts on a regular basis- Review your accounts and transactions regularly to catch any suspicious or unauthorized transactions.
- Use cash- While credit and debit cards offer convenience, if a situation doesn’t feel right, trust your instincts and use cash if you’re able.
What to do if you think you’ve fallen victim to skimming
If your debit or credit card has been compromised, contact your credit card issuer or bank immediately. Federal law limits your liability if a credit, ATM, or debit card is lost or stolen, but your liability may depend on how quickly you report the loss or theft.
