How Does Skimming Credit Cards Work: Everything You Need to Know

Skimming credit cards is a type of credit card fraud where thieves steal your card information to make unauthorized purchases.

Thieves typically use a device called a skimmer to capture your card details, which can be attached to ATMs, gas pumps, or other card readers.

Skimmers can be difficult to spot, but they're often slightly thicker than the actual card reader.

A skimmer can store your card information for later use, allowing the thief to make multiple purchases with your card.

Card skimming is a financial fraud involving the illegal capture of a victim's card information using a device known as a skimmer.

The black stripe on the flip side of your credit card stores all the information required by a crook to steal your money, including the name of the cardholder, the card number, expiration date, and CVV code.

A skimming device can extract this information from the magstripe, which is made of tiny iron-based magnetic particles and is divided into two or three individual tracks.

The magstripe is magnetized in different directions depending on the information it encrypts, making it vulnerable to skimming.

Once a fraudster skims a victim's card information, they can use it to create cloned cards or use it for online transactions.

Card skimming devices come in different forms, making them tricky to spot. They can be designed to blend in with legitimate card readers.

Physical or overlay skimmers are a common type of skimmer, often found at ATMs, gas pumps, or other outdoor payment terminals. They can capture the magnetic stripe data and use a camera to capture the victim's PIN.

Some skimmers are built to be hidden, using illegal components inside a card reader or even a device on top of the actual reader to steal card information.

Card skimming devices, also known as card skimmers, are small electronic devices that steal card information at points of sale.

They're designed to blend in with legitimate card readers, making them difficult to spot. Hidden cameras can be used to steal card information.

Some fraudsters can build their own skimmers, but many choose to buy them on the black market.

Physical or overlay skimmers are a common type of credit card skimming device.

They can be found at ATMs, gas pumps, or other outdoor payment terminals, where they blend in seamlessly with the legitimate card readers.

These skimmers capture the magnetic stripe data from your credit card, which is then used to make unauthorized transactions.

Some thieves also install tiny cameras to capture the victim's PIN, often in unsuspicious places and camouflaged to the naked eye.

Others use counterfeit overlay number pads to record the punched-in numbers, making it even harder to detect their scheme.

These devices are designed to be undetectable, so it's essential to be vigilant when using outdoor payment terminals.

Wireless skimmers are a type of skimming device that can steal card data remotely. They're often installed near payment terminals, close enough to collect data without physical contact.

Advanced wireless skimming devices can target more secure cards like chip or contactless. These cards were designed to be more secure, but fraudsters have adapted to find ways around them.

Bluetooth skimmers are a type of wireless skimmer that captures and sends stolen card data wirelessly. They're often placed near tap to pay terminals, where they can grab card information as the victim pays.

Because wireless skimmers can grab card data without direct physical contact, they're one of the most flexible skimming methods. This makes them a favorite among fraudsters who want to stay one step ahead of security measures.

Internal skimmers are a sneaky type of skimmer that can be very difficult to spot. They're installed by fraudsters who break into a merchant's systems or networks, allowing them to capture card data as it processes.

Internal skimming can affect a huge number of customers before it's finally removed. This is because the malware can remain undetected for a long time.

Using a credit card might be safer than a debit card because it's not directly tied to your bank account, so you won't have to deal with the hassle of getting your money back if thieves drain your account.

You can also add alerts to your credit and debit cards, such as an email, text, or app notification, every time there's a new transaction. This can help you act quickly if someone uses your card's info to make fraudulent purchases.

To spot skimming devices, compare nearby card readers, like two card readers on a convenience store counter, and look for minor differences, such as odd colors or small holes.

Here are some steps to take when using your card at an ATM, gas pump, or sales terminal:

Card skimming scams are a serious concern, and it's essential to be aware of the most prevalent ones.

One of the most common scams is making unauthorized purchases online or over the phone using the stolen data from the card's magnetic strip.

Scammers can also sell the stolen data to other scammers for a profit, making it a lucrative business for them.

Another scam is using the stolen data for identity theft, which can have severe consequences for the victim.

To put this into perspective, counterfeit cards can be created using the stolen data, and these cards will usually have all the same information as the original card.

Here are some of the ways scammers can use the stolen data:

Online skimming scams, or e-skimming, steal card information directly from e-commerce websites. Fraudsters add malicious code into payment pages that intercept card data at checkout.

Websites without an SSL certification (https) are especially vulnerable to these attacks. This means you should only enter sensitive information on websites that have "https" in the URL and a lock icon in the address bar.

Online skimming can happen on any website, but some are more susceptible than others. Be cautious when using public computers or public Wi-Fi to shop online, as these are prime targets for hackers.

To protect yourself, make sure to only shop on reputable websites and avoid entering sensitive information on sites that don't have an SSL certification.

Protecting yourself from card skimming requires some awareness and caution.

Use the safest payment method available, such as tapping your digital wallet or a contactless card, as it's safer than inserting or swiping your card.

Cover the pad when typing in your PIN, as it's not a fool-proof method but can keep cameras from recording what you type.

Compare nearby card readers, even if it's just a quick glance, to spot any minor differences that could indicate a card skimming device.

Be prepared to manipulate the edge of the device, like pulling on the card reader or keypad, to see if there's a skimming device that moves or comes off.

Check the security seals at gas pumps, as a broken or void tape can indicate a compromised pump.

Here are some specific things to look for when checking card readers:

Using a credit card might be safer than a debit card, as it's not directly tied to your bank account.

Credit card skimmers can work on chip cards, but it's less common.

There are thin devices called credit card shimmers that can be inserted inside chip-reading slots.

Shimmers are generally invisible from the outside of a card-reading slot and can steal data from standard EMV chips.

Chip cards, also known as EMV cards, are designed to provide an additional layer of security compared to traditional magnetic stripe cards.

While chip cards are more secure, they're not completely immune to skimming devices. Credit card shimmers, for instance, can be inserted inside chip-reading slots and steal data from standard EMV chips.

These shimmers are often invisible from the outside, making them difficult to detect. They can potentially compromise the security of chip cards.

Contactless cards are generally resistant to traditional skimming techniques, using both encryption and verification to protect the card's data.

However, sophisticated criminals have still found ways to exploit vulnerabilities in contactless card systems. They can intercept communication between a card and the point of sale.

Card issuers track and address emerging threats to keep card technology a step ahead of skimmers. This means that even if a contactless card can be skimmed, the risk is still relatively low.

Some contactless cards use embedded microchips, which enhance security and reduce the risk of card skimming. But even with these enhanced chips, chip cards aren't entirely immune to credit card skimming.

Fraudsters can still tamper with legitimate card readers and skim that way. It's essential to stay vigilant and report any suspicious activity to your bank or card issuer.

Check the security seal on gas pumps by looking for an intact seal near the card reader. If the seal is broken, the label will read "void", indicating a potential skimmer.

At gas pumps, skimming devices can be hidden in plain sight. If the pump panel is open, it's a red flag.

When using a gas pump, take a moment to inspect the area around the card reader. A broken security seal or an open pump panel is a warning sign that a skimmer might be present.