How to Spot an ATM Card Skimmer Before You Pay

You use your card many times a week without thinking. Most of the time that is fine. Sometimes a small device is waiting on the reader, and it copies your card data while you pay. The FBI says skimming costs financial institutions and consumers more than $1 billion each year. Here is what these devices are, where they sit, and how to check a machine before you use it.

What an ATM card skimmer actually is

A skimmer is a small device. Criminals put it on or inside ATMs, store card readers, or fuel pumps without permission. The FBI says these devices capture card data and record cardholders' PIN entries. The device saves the stolen data for the thief to grab later. Some send it wirelessly in real time to nearby devices.

Criminals then use the stolen data to create fake payment cards. With those, they make unauthorized purchases or drain money from victims' accounts.

Where skimmers hide: ATMs, fuel pumps, and store terminals

At an ATM, the FBI says skimmers are placed in the card slot or hidden inside the machine. You may not see anything stuck on the outside at all.

The FBI says pump skimmers are usually hooked to the wiring inside the machine. You cannot see them from outside.

Store terminals are a different problem. The FBI says store card readers can hold skimmers anywhere. That includes any market, corner store, or shop. It only takes seconds to install one. One thief may distract a store clerk by asking for items behind the counter. That gives them time to install a skimming device.

How criminals capture your PIN

Stealing card data is only half the job. To use a fake debit card at an ATM, criminals need your PIN too.

The FBI says pinhole cameras installed on or around ATMs record a customer's PIN entry, and their placement varies widely. A camera may sit anywhere on or around the terminal, pointed at the keypad. Covering the keypad with your hand when you type is the simple defense.

Why chip cards and tap-to-pay are harder to skim

The FBI says embedded microchips secure customer payments far better than magnetic stripes. There are fewer devices in the U.S. that steal chip data than magnetic stripe data. So use debit and credit cards with chip technology when you can.

Tap-to-pay is safer still. The FBI says tap-to-pay transactions are more secure and less likely to be compromised.

One warning. The FBI says the mag-stripe data on the backs of chip cards is still vulnerable. For what federal law says about card charges you did not make, read credit card fraud.

How to inspect a card reader before you use it

The FBI says to inspect ATMs, POS terminals, and other card readers before using them. Look for anything loose, crooked, damaged, or scratched.

A short routine that works anywhere:

• Look over the whole machine, not just the card slot. Anything unusual means do not use it.
• Pull at the edges of the keypad before entering your PIN.
• Cover the keypad with your hand when you type your PIN. This stops cameras from recording it.
• Use ATMs in a well-lit, indoor location if possible.
• Be extra alert in tourist areas. The FBI says these are popular targets.
• At a gas station, consider paying inside with the attendant, not outside at the pump.

The FBI says not to use a card reader if you notice anything unusual. Walk away and find another machine.

EBT and benefits cards: why they are a prime target

If you use an EBT or SNAP card, pay close attention here. The FBI says EBT card data has become a key target for skimming groups since at least 2021.

The reason is the card itself. The FBI says EBT cards and some other benefits cards mostly have no chip. That lack of chips makes it far easier for bad actors to compromise them and cash out. The FBI also says some store workers have helped thieves steal EBT card data and cash it out.

Timing matters too. The FBI says thieves often spend SNAP money from the first to the tenth of the month.

The hard part is what happens after. The FBI says EBT cardholders generally have limited protections compared with holders of common credit and debit cards. They may not be reimbursed fully, or at all, for benefits lost to criminals. When reimbursement does occur, it may take weeks.

Phishing, smishing, and vishing aimed at card data

Skimmers are not the only way criminals get card data. The FBI says police are seeing many more phishing, smishing, and vishing scams that go after EBT card data.

Smishing uses SMS text messages instead of email. Vishing uses phone calls, generally with an automated voice. Scammers often pose as a creditor, bank, or state benefits agency.

The FBI says these calls and messages try to trick you into entering your card details without thinking. They create a sense of distress, often by claiming your EBT account is closing or your funds are gone. If you get a message like that, call your state benefits office. Ask if the message is real. And never provide your PIN if a call, text, or email asks for it. The FBI says state benefits agencies will not request cardholder PINs.

What to do right after a suspicious transaction

Does an ATM keep your card after you end or cancel a purchase? Call your bank or credit union right away. The FBI says a stuck card may mean a device is in the card slot.

If money is missing from a benefits account, act fast. The FBI says to promptly change your PIN if any funds remain in your EBT account. Then check if your account or EBT app lets you block or freeze your card for a short time.

For a bank account card, the steps differ by card type. Read debit card fraud for what to do when a debit charge goes wrong.

You can also report skimming to the FBI. The FBI says to visit ic3.gov, its Internet Crime Complaint Center, and file a report there.

Monitoring habits that catch skimming early

The FBI says to check your credit card, bank, and EBT or other benefits accounts often. Look for charges you did not make.

Set email or text-message alerts for card or account transactions if your bank or app offers them. Check the security settings on any cards you use. The FBI says these can include a second step to approve a purchase. You may also be able to freeze your account between your own purchases.

The FBI says such steps may seem inconvenient but significantly reduce the risk of financial losses. One more habit helps. The FBI says to avoid using your debit card when you have linked accounts, since criminals could reach all of the accounts. For more ways to guard your money and your name, see how can we prevent identity theft.

Sources

• Skimming — FBI