How to Protect Yourself from ATM Skimming and Shimming

Scammers are everywhere in web-based commerce. You might think you’re safe using cash, but scammers wait in one location you can’t avoid: the ATM. ATM fraud is an old concern, but technological advances mean consumers need to be even more aware.  

Two such threats are ATM skimming and ATM shimming. These sophisticated forms of fraud can compromise your financial security in a matter of seconds. However, armed with knowledge and awareness, you can significantly reduce your risk of falling victim to these scams. 

What is ATM Skimming? 

ATM skimming is a method used by fraudsters to steal card information from unsuspecting individuals when they use an ATM. The process involves installing a small, inconspicuous device—known as a skimmer—over the card slot of the ATM. This device is designed to capture the data stored on the magnetic stripe of your debit or credit card when you insert it to make a transaction. 

Criminals may install a pinhole camera or overlay a fake keypad on the ATM to capture your PIN as you enter it. With both your card information and PIN in hand, fraudsters can create duplicate cards or make unauthorized transactions, leading to financial losses and identity theft. 

What is ATM Shimming? 

Similar to ATM skimming, ATM shimmers are inserted into the card reader slot of the ATM. However, while skimmers grab information from the magnetic strip, shimmers are slim devices that target chip cards. Once inserted, the shimmer collects data from the chip in the card, allowing fraudsters to clone cards and carry out unauthorized transactions. 

Although ATM shimmers aren’t easily detected, if it’s difficult to insert your card into the ATM slot, that may indicate that a shimmer is in use. 

How to Avoid ATM Skimming and Shimming 

Inspect the ATM. Before using an ATM, take a moment to inspect it for any signs of tampering. Look for loose parts, unusual attachments, or anything that seems out of place, especially around the card slot and keypad. 

Cover Your PIN. When entering your PIN, shield the keypad with your hand or body to prevent hidden cameras or onlookers from capturing it. 

Choose ATMs Wisely. Opt for ATMs located in well-lit, high-traffic areas, such as inside banks or supermarkets. These locations are less likely to be targeted by fraudsters, as their activities are more easily observed. 

Use Contactless Payments. Whenever possible, consider using contactless payment methods, such as mobile wallets, to avoid exposing your card to skimming and shimming devices altogether. 

Monitor Your Accounts. Regularly review your bank and credit card statements for any unauthorized transactions or suspicious activity. The sooner you identify financial fraud, the quicker you can take action to mitigate its impact. 

What to Do If You Are a Victim of ATM Skimming and Shimming

Contact Your Bank. If you suspect that your card information has been compromised, notify your credit union or bank immediately. They can freeze your account to prevent further unauthorized transactions and guide you through the steps to resolve the issue. 

File a Police Report. Report the incident to your local law enforcement agency. Should an investigation occur, providing detailed information about the time, location, and circumstances of the skimming or shimming incident can aid in the investigation and help prevent future occurrences. 

Monitor Your Credit. Keep a close eye on your credit report for any unusual activity or accounts opened fraudulently in your name. Consider placing a fraud alert or credit freeze on your credit file to prevent unauthorized access. 

Educate Others. Share your experience with friends, family, and community members to raise awareness about ATM skimming and shimming, so they can protect themselves from financial fraud. 

Both ATM skimming and shimming pose significant threats to your financial well-being, but by staying vigilant and following these preventive measures, you can minimize your risk of being a victim. 

At Scott Credit Union, your financial safety is our priority. Check out our security webpage and YouTube security playlist to learn more tips and tricks on how to stay safe from fraud and scams.