What Is a Credit Card Skimmer & What Does It Look Like? (2024)

What Is a Credit Card Skimmer?

A credit card skimmer is a device that is attached by criminals to a card reader at a store, gas pump or ATM in order to steal people’s credit card information. Skimmers can get information from both credit cards and debit cards, but certain types of cards, particularly those with chips, are safer.

While card skimming isn’t necessarily a danger you’ll run into every day – or ever, if you’re lucky – it’s unfortunately becoming more common. For example, a report by FICO showed a 96% increase in debit cards affected by skimming from 2022 to 2023, with over 315,000 cards affected during 2023. In addition, the FBI estimates that credit and debit card skimming combined costs U.S. consumers and financial institutions over $1 billion per year.

To put your mind at ease, we’ve compiled some helpful information on how to avoid being a victim of card skimming and what to do if your card is compromised.

How Does a Credit Card Skimmer Work?

1. Criminals install a device onto a point-of-sale machine (card reader) at a store, gas pump or ATM. This device is designed to look like it is part of the machine. For example, it may include a piece that goes over or inside the existing card slot or keypad, or have other elements like hidden cameras.
2. Customers use the machine and either swipe or insert their cards into it.
3. The skimmer records information stored on the cards and saves it.
4. A skimmer may also work alongside a hidden camera or fake keypad that goes on top of a real keypad in order to catch the PIN that people use.
5. Criminals take the information from the skimmer and copy it onto blank cards so they can make fraudulent purchases. They might also use your credit card for online purchases or sell the info to other people.

What Does a Credit Card Skimmer Look Like?

A credit card skimmer looks like a normal credit card reader, at least at first glance. Skimmers are designed to either be placed on top of existing card readers or inside the credit card slot. Fake keypads also may be placed on top of real keypads. The good news, though, is that there are ways for you to spot a skimmer and avoid falling victim to theft.

How to Spot a Credit Card Skimmer

1. Inspect any store card reader, gas pump or ATM you use carefully.
2. Make sure the card reader is not visibly damaged, loose, or crooked.
3. Check devices you use often to make sure they doesn’t look larger than usual (some skimmer devices are on top of the real reader so it makes them look larger).
4. Check to make sure there are not any objects inserted into the card slot.
5. Inspect any keypads you use as well, to make sure they are not a fake keypad overlaid on a real one.
6. Do not force your card into a reader if it does not go in easily. This could mean there is a card skimmer device inside.
7. Check gas pumps to make sure the security tape/label is not broken. Gas pumps have a piece of tape or a label near the card reader that goes over the gap in the pump where it would open to be serviced. The strip is usually red and labeled as a “security label/seal.” If this is broken, the pump may have been tampered with.

How to Avoid Credit Card Skimmers

In addition to doing a visual inspection to try to find hidden devices, there are a number of things you can do to try to protect yourself during the checkout process, depending on the type of card reader you’re using.

Card reader at a store

These are usually in view of a cashier, so they’re usually not as likely to hold card skimmers as outside devices like ATMs or gas pumps. However, skimmers for these devices do exist.

When using a card reader in a store, after inspecting the device, use only a card with a chip. It’s much harder to skim information from a card that is inserted rather than simply swiped. It’s also ideal to use a credit card rather than a debit card, because if you fall victim to a skimmer, you are not responsible for any fraudulent transactions. With debit cards, your fraud protection may be a bit weaker.

ATMs

If you’re able to, use an ATM that’s inside a building in direct view of staff. It’s also preferable to use an ATM that’s directly affiliated with your bank rather than a generic one. Always inspect the ATM for signs of tampering before inserting your card, too.

If your card does not go easily into the slot in an ATM, don’t use it. Assuming everything does go smoothly, cover the keypad with your other hand as you enter your PIN so if there are any hidden cameras, they can’t see what you type. Finally, contact your bank immediately if an ATM doesn’t return your card once you’re done with the transaction, and keep an eye on your recent transactions after using an unfamiliar ATM, even if things went smoothly.

Gas pumps

Try to use gas pumps that are in well-lit areas and in within view of the inside counter through the window. Always inspect the card reader on the gas pump before using it, and don’t use it if your card doesn’t go in easily. Use a credit card rather than a debit card, and only use cards with a chip.

Gas pumps also usually give you the option to pay inside the store rather than at the pump, so doing that is likely to be safer as well.

What to Do if Your Card Is Skimmed

If something seems off to you when you pay for a transaction, and you suspect that your card has been skimmed, keep a close eye on your online account so you can spot any fraudulent transactions. This is also a good practice even if you don’t think your card has been skimmed – if the skimming is good, you won’t notice it. If you do find a fraudulent transaction, there are some important steps you should take immediately.

Steps to Take if Your Card is Skimmed

1. Contact your card issuer immediately.
2. Tell them there has been a fraudulent transaction on your account and ask them to cancel the card immediately.
3. Wait to receive your new card in the mail, which should have a new card number, expiration date and security code.
4. Destroy your old card by cutting it up.

The good news is that every major credit card network offers $0 liability for fraudulent transactions. Debit cards also offer protections, but they are not quite as robust as the ones on credit cards.

Was this article helpful?

Important Disclosures