Scams connected to ATMs and credit card readers are nothing new. Many of us already shield the keypad when entering our pin number, but there are many ways in which criminals use ATMs and credit card readers to steal thousands of dollars from unsuspecting victims.
Skimming is the most common ATM and card-swiping scam. It involves a thief tampering with the card reader, usually at a gas station or other outdoor public ATMs. There are a few ways to "skim" someone's card information: attaching a separate device to the card reader that records information from the magnetic strip, a fake keypad placed over the original keypad to record your PIN, or a small camera that records the keypad as you enter your PIN. To outwit scammers, examine any machine that you insert your card into and notice if anything looks out of place. Wiggle the card reader or PIN pad to see if it is loose or falls off.
Shimming is much harder to spot than skimming. An ATM shimming device is located inside the ATM card reader. Instead of reading the magnetic strip, it gathers information from the security chip. It's nearly impossible to detect, but there are ways to look out for it. Many gas stations place security tape over the panel where you insert your card. If someone opens the panel in an attempt to install a shimming device, the security tape will be broken, and the word "void" will appear.
Remember these tips when using your ATM card:
If you suspect fraudulent activity on an ATM or card reader, report it to the bank, store owner or police. For further information about ATM card reader scams and other scams, visit the FTC website.