What Is ATM Skimming and How Does It Work?

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If you think about how much personal information you have floating around online, it’s enough to make anyone uneasy. Whether you’re pulling cash from an ATM or shopping online with your credit card, you could be at risk for theft. One threat to be aware of is ATM skimming. So, what is ATM skimming — and how can you avoid becoming a victim?

What Is ATM Skimming?

ATM skimming is a type of fraud where thieves install hidden devices on ATMs to steal your card information. Typically these devices copy your data from the magnetic strip on your card when you insert it into the ATM slot. 

Thieves place a hidden camera near the keypad or keypad overlay to steal your PIN. Using your card data and PIN, thieves can make fake copies of your card. They will use this counterfeit card to withdraw cash and make unauthorized transactions. 

How Does ATM Skimming Work?

Criminals don’t have to do much to steal your ATM number and PIN. Typically thieves will place a skimming device over the real card slot. 

• When you insert your card, the skimmer will read and save your card information.
• A small hidden camera — usually placed by the keypad — will record your PIN when you type it.
• In certain instances, a fake keypad can be used to read the PIN directly. 
• When the thief has your account number and PIN, they begin withdrawing cash or making unauthorized purchases. 

Signs an ATM May Be Compromised

How can you tell if the ATM you’re using is a thief’s target? Don’t ignore the following signs: 

• Look at the card slot. If the slot looks loose, bulky or misaligned, steer clear of that ATM. 
• Feel the keypad. If the keypad feels hard to press or seems too thick, don’t finish your ATM transaction.
• Eye the ATM. If the ATM has wires or parts sticking out, you don’t need further confirmation that it has likely been compromised. If the ATM looks mismatched or it appears parts have been added later, time to drive away and find a new ATM location. 

Key Tip

If your gut tells you something is wrong with the ATM you’re using, trust your judgment and find a new ATM. You can save yourself from future headaches. 

ATM Skimming vs. Card Cloning

Confused about ATM skimming vs. card cloning? Just remember skimming is how criminals get your data, while cloning is how they use it.

Take a look at this chart to learn more about the differences: 

How To Protect Yourself From ATM Skimming: 6 Easy Ways

Even if you know how to detect a credit card skimmer, it’s better to avoid situations where you’re likely to encounter a skimming device. Here are six ways to protect yourself from ATM skimming:

1. Use Indoor ATMs

ATMs inside banks can be easily monitored. It is difficult for thieves to tamper with the ATM when they know they’re being monitored. 

2. Cover the Keypad

It may seem like one more step, but covering the keypad while entering your PIN can be a lifesaver if prying eyes are watching. 

3. Check the ATM

If the ATM has loose parts or seems suspicious, trust your instincts. Make the effort to go to a different ATM location. 

4. Sign Up for Alerts

You’re likely already on your phone, so why not sign up for text bank alerts? Your bank will notify you immediately via text if there is a suspicious charge on your account. 

5. Use Trusted Locations

Your chances of being skimmed will decrease if you use trusted ATM locations, preferably inside your bank. 

6. Consider Contactless Payments

Many retailers allow for contactless payments so you can use your phone instead of a debit or credit card to pay for your transaction. The less you swipe, the more likely you avoid becoming a skimming victim. 

What To Do If You Think You Used a Skimmed ATM

Do you think you’re the victim of skimming? You should act fast. Here are the steps you need to take immediately: 

1. Contact your bank ASAP and explain that you think your card may have been skimmed. 
2. Ask the bank to freeze your card and request a replacement. 
3. Monitor your account for suspicious transactions. 
4. You may want to reach out to the credit bureaus to place a fraud alert on your credit report. 

How Common Is ATM Skimming?

In 2023, nearly 1,600 skimming events were identified. On average, 199 cards were skimmed per event. The good news is that ATM skimming is less common now because of chip cards.

Each time a chip card is used, a unique code is generated that is difficult to duplicate. However, machines that still rely on magnetic stripes are still susceptible to skimming.

Where Is Skimming Likely To Happen? 

Generally skimming happens in stand-alone ATMs located in the following places: 

• Gas stations. Gas stations are popular targets for credit card skimming devices, as criminals can easily compromise a gas pump card reader with a skimmer placed inside or out. They also place card-skimming devices on ATMs. 
• Convenience stores. Stand-alone convenience stores are not necessarily monitored like bank ATMs. Skimmers can be installed without any detection. 
• Tourist areas. Thieves know that sometimes tourists aren’t always traveling with cash. Tourists may need to get cash quickly from an ATM that isn’t necessarily monitored and is likely isolated. This is a perfect place for a skimmer to place a hidden camera or overlay. 

Barb Nefer and Caitlyn Moorhead contributed to the reporting for this article.

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