Criminals are making it harder to keep money in your accounts by using skimmers attached to machines where cards are swiped. These devices are placed on or inside ATMs, and often gas pumps to get your account number and pin to duplicate the information. These skimmers are popping up all over the United States.
The skimming problem has been around for a while, but it has become progressively worse. A report completed by the FICO Card Alert Service, a firm that detects credit card fraud, stated that the use of skimmers in 2015 was up 546%. Verizon Enterprises also reported that ATM attacks account for 94% of security breaches and that gas pumps account for another 5%.
Just this May, NCR Corporation (a manufacturer and developer of payment machines and software) cautioned about the use of deep-insert skimmers. These skimmers are placed inside the ATM, behind the shutter of a motorized card reader where the consumer cannot see. The criminal then returns to the ATM to retrieve the information. Some skimmers can even send your information wirelessly. Once they have your information, a counterfeit card is made and your account is emptied.
Unfortunately, thieves don’t limit themselves to skimmers. Sometimes other devices are used, such as cameras that record your PIN. They can also take your information by placing an “overlay” on top of the regular PIN pad. To prevent your accounts from being depleted by a thief, here are some tips.
- Avoid using secluded ATMs. Machines that are not in high traffic and/or well-lighted areas are more vulnerable. Look out for gas pumps that are not close to major highways. The safest ATMs are at your local financial institution, whether it’s a drive-thru or a walk-up machine.
- Do not place your credit or debit card into the readers at gas stations. It’s safer to pay the attendant directly at the gas station. Even then, make sure the card is in your eyesight, as some employees will use a portable skimmer to steal your information. Your best bet to avoid this by withdrawing money from a teller at your financial institution.
- Check if the machine has been compromised. Wiggle the keypad or the card slot before inserting your card. If it seems loose or the keypad is a different color, don’t use it. Some gas pumps have security tape, which if broken, indicates the machine is not safe. If you think it’s been tampered with, call the business associated with the machine.
- Keep your PIN secure by covering the keypad with your hand. To further confuse a possible thief to place your fingers on other keys so they won’t necessarily know which keys you pushed. However, if a skimming device is already on the machine, these tactics will not protect you.
- Use a chip card. Chip cards have more protection than regular cards. These protections apply if you are inserting only the chip portion into the reader; cards that need to be inserted completely into the reader can have information stolen from the magnetic tape.
- Don’t use your debit card. A credit card has more fraud protection than a debit card and does not run the risk of your bank account being emptied.
- Check your accounts frequently. Examine your financial statements for any discrepancies or unusual transactions.
- If there is fraud on your account, call your financial institution immediately. There’s only a short time frame where you have zero or limited liability for your card’s unauthorized use.
If all else fails, it’s better to be safe than sorry by using cash over plastic. Taking precautions may help you avoid a disaster.
Photo courtesy of freedigitalphotos.net/scottchan
