What is skimming fraud and how to protect yourself

Skimming is the act of reading and copying credit card data without the owner of the card knowing. The stolen data is then used to withdraw money or carry out illegal transactions.

How does skimming work?

Skimming is a type of man-in-the-middle attack where data from the magnetic strip or chip of a credit or debit card is read and copied when the card is placed into a cash machine. There are many ways that cash machines can be tampered with to carry out skimming fraud. One method is to install an additional reader directly on the card reader or even on door openers at bank branches since a card is often required to access the cash machine area. Hidden cameras are often installed, usually in the plastic strips above the cash machine keypad so that the PIN can be seen when the owner enters it. These cameras are often so well hidden that they are difficult to detect even if a cashpoint user is being extra vigilant. Fake keyboards are also frequently used to record the PIN as it’s being entered. There are even methods that use thermal imaging cameras to find out PINs.

Skimming can also occur when exchanging currencies, paying at gas stations or making purchases at stores. In these instances, a card is read by a second, fraudulent device without the owner being aware of it. After the card data has been stolen, it is transferred to a blank card, also known as ‘white plastic’. Criminals can then withdraw money and make payments with this duplicate card and PIN. The reason that skimming is possible at all is because the data on the magnetic strip is freely accessible and is not protected by the card itself, as is the case with modern chip cards.

How can you protect yourself from skimming?

Most banks check their cashpoints to make sure they haven’t been tempered with. They are often equipped with anti-skimming modules, which are special technologies that are integrated into cash machines to detect and prevent skimming attempts. Here are some ways that these modules work:

• Prevent data from being read: some modules continuously emit interference signals that prevent a skimming device from reading data from a card’s magnetic strip.
• Physical barriers: some anti-skimming modules prevent skimming devices from being attached to the card reader.
• Sensors and monitoring: advanced modules use sensors and cameras to detect unusual activity or anything suspicious attached to the ATM. If something is detected, the affected machine can even shut itself down.
• Analyse the magnetic field: some anti-skimming systems work with induction coils that measure the magnetic field in the card slot area, allowing them to detect changes made by skimming devices.

It is important to always be vigilant and take various precautionary measures to prevent your card data from being stolen:

• Hide your PIN: cover the keypad with your hand when entering your PIN.
• Be vigilant: look out for anything suspicious on the cash machine or payment terminal, e.g. loose or unusually large card slots or other strange attachments.
• Check your account regularly: check your account statements often and inform your bank immediately if you notice any unexplained withdrawals or transactions.
• Update your card: if possible, use an EMV chip card, as these are more difficult to copy than magnetic strip cards.
• Pay contactless: use contactless cards or mobile payment apps such as Google Pay to reduce the risk of falling victim to skimming fraud.
• Avoid public Wi-Fi: be careful when using public Wi-Fi, as it could be used by criminals to access your card details.

How do you know if you have fallen victim to skimming fraud?

It can sometimes be difficult to know if you’ve been affected by skimming, however, there are some signs you can look out for. It is essential that you check your bank statements regularly. Unknown and unexplained withdrawals are a sure sign of skimming or that someone has accessed your account without your permission. In addition, if online purchases have been made that you know nothing about, this may also indicate that you have fallen victim to skimming.

What should you do if skimming happens to you?

If you suspect that you are a victim of skimming, you should act quickly. Unusual activity is often automatically detected by banks’ security systems, but if you notice any suspicious activity that you think the system hasn’t picked up on, you should inform your bank immediately. This can help to limit the financial damage and increase the likelihood of everything being resolved. In addition, you should also take the following steps:

• Block your card: this is the first and most important step. Contact your bank or credit card company immediately to have your card blocked. Most banks offer a 24-hour hotline for this purpose.
• Press charges: report credit card fraud to the police. This will help the prosecuting authorities identify the perpetrators and can help you get legal support.
• Change your passwords: if you suspect that other personal data has also been stolen, you should immediately change important passwords, especially those that you use for online banking. Using a one-time password (OTP) is a good idea for better protection.
• Use preventive measures: consider how you can prevent future skimming attempts. This could mean using contactless payment methods, regularly checking cash machines before using them or setting up transaction alerts.

Even if the incident has been resolved, you should remain vigilant. Skimming fraud is just one of many scams, along with phishing and other types of online fraud. Being extra vigilant can help protect you from losing money in the future.