Protecting yourself from Credit and Debit Card Skimming

What Is Credit and Debit Card Skimming?

Credit and debit card skimming is a form of identity theft that involves copying a credit card or debit card's information to use for fraud. An illegal device called a skimmer is installed at a gas pump, ATM, or other payment terminal to copy card information from the magnetic strip to a storage device. Criminals can then retrieve the stolen information and use it to make fraudulent purchases.

How Common Is Credit and Debit Card Skimming?

Credit or debit card skimming is one of the most common types of fraud and costs consumers and financial institutions more than $1 billion a year, according to the FBI.

Where Are Credit and Debit Card Skimmers Most Often Used?

Skimmers are often placed on ATMs and gas pumps, but they can be placed on most types of electronic points of sale. Tourist areas are popular targets for credit and debit card skimming devices, but they can appear at merchants in any region.

Who Are the Most Common Victims of Credit and Debit Card Skimming?

Anyone who uses a credit and/or debit card to make purchases can become a victim of skimming. But your risk of prolonged fraud and losses increases if you don't regularly monitor your accounts.

Learn How to Spot a Credit and Debit Card Skimmer

Checking for a skimmer usually only takes a few seconds:

• Look for damage to the card slot or PIN pad, which could be a sign that the machine has been tampered with.

• Wiggle the card reader or keypad with your hand. If it feels loose or moves easily, it could be a skimmer.

• Compare the card slot to other nearby machines, such as the neighboring gas pump.

• Some gas station pumps have security stickers installed on the card readers. If the sticker looks tampered with, don't use the card reader.

How to Help Avoid Credit and Debit Card Skimmers

Here are some tips to help avoid credit and debit card skimmers.

1.  Use Contactless Payments. This eliminates the need for your card to physically enter a reader, protecting it from skimmers that read that magnetic strip or chip on your card.
2. Choose a Machine in View of Security. Criminals are less likely to target machines where they can be caught installing skimmers.
3. Look out for Hidden Cameras, there may be hidden cameras installed on gas pumps or ATMs to spy on your keystrokes and capture your personal identification number (PIN). If you see a camera, report it to the merchant. It's also a good idea to cover your hands when inputting your PIN number to avoid shoulder surfing.
4.  Monitor Your Accounts.  Monitor your accounts and read your monthly statements to look for unauthorized transactions. Immediately report any suspicious activity to the financial institution.
5. Use a Credit Card for Purchases. Using a credit card for your purchases offers greater consumer protection, as your liability for fraudulent charges can never exceed $50. Most credit card providers extend $0 liability to their cardholders as an added protection.

Sign Up for Identity Theft Protection

Even if you are attentive to all the warning signs of card skimmers, all it takes is one slip-up for your payment info to fall into the wrong hands. The best course of action is to use a robust identity theft protection platform with tools and services that not only help you prevent identity theft but also recover from it while mitigating damages. This can help you safeguard your finances while also giving you an extra safety net.

Credit monitoring can help protect you from identity theft by watching your credit report, Social Security number, and other crucial aspects of your identity for signs of fraud. You receive alerts when possibly suspicious activity is detected to help you quickly respond when fraud occurs.

IdentityIQ provides 24/7 credit monitoring with real-time alerts, along with many other features for prevention and recovery, such as internet and dark web monitoring and identity theft insurance of up to $1 million, underwritten by AIG.

Learn more about how Identity Protection through Identity IQ can safeguard your identity.