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How to spot credit card skimmers

Yahoo Personal Finance· Getty Images
6 min read

A credit card is a convenient payment tool with some built-in protections against fraud and unauthorized charges. While these safeguards are valuable, thieves can access your credit card information in many ways. Many fraud attempts originate online, such as through phishing emails or data breaches, but it pays to be vigilant when using your card in person, too.

Card skimming, where thieves steal your information after illegally modifying a business’s card reader, is on the rise. There was a 40% increase in skimming reports in 2023, according to FICO data, with an average of about 200 cards affected in each skimming event.

However, you can take some steps to protect yourself and your financial information from credit card skimmers. Here’s what to know about these devices, how to spot them, and what to do if you think your data has been compromised.

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A credit card skimmer is a device, such as a false keypad, fake panel, or small camera, that attaches to or is placed near a payment terminal. When you swipe your credit or debit card, thieves can collect your information, such as your card number, expiration date, card verification value (CVV) code, and name.

Once they have your data, they can use it to make unauthorized purchases by inputting your information online or creating fake cards, or they could sell the data to a third party. All of the above can be a big headache for a theft victim.

Skimmers are often placed on or near payment terminals that are outdoors or easily accessible to the public. Gas pumps and ATMs are common targets, but skimmers may also be found in stores or restaurants, so it’s important to know how to identify one.

Looking closely at different payment terminals can help you avoid credit card skimmers, though some devices are sophisticated and hard to spot. If a payment terminal has been compromised, you might notice that the tape on the panel is cut or the terminal or the keypad appears misaligned. Likewise, a terminal with a skimmer attached might look different than others nearby or ones you’ve seen elsewhere. It could have an additional piece of plastic or metal attached.

Besides a visual inspection, you can also try moving parts of a payment terminal around before inserting your card. Untampered-with terminals are well-built to protect consumers, so if a keypad or card reader wiggles or moves easily when you touch it, it could be compromised. Similarly, if buttons on a keypad are difficult to push, there might be a problem. If you identify a potential issue with a payment terminal, report it to the business immediately.

It can be difficult to spot a skimmer, even with a thorough inspection. But you can be vigilant in other ways to keep your debit and credit card information safe. Here are some helpful tips to avoid credit card fraud.

  1. Pay inside: Since gas stations are a common target for credit card skimmers, pay inside instead of using the payment terminal at the pump. This might take a few extra minutes, but it’s much less troublesome than having your card info stolen.

  2. Avoid high-risk ATMs: When possible, avoid outdoor ATMs or those at gas stations and convenience stores. Stick to the ones at your bank or other nearby banks to make transactions.

  3. Cover your information: Since small cameras can be used to steal your information, cover your card with one hand and insert it into the terminal with the other. Also, ensure you cover the keypad when entering your PIN.

  4. Pay via mobile wallet: If it’s an option, consider paying via mobile wallet instead. This offers more protection than using a physical card.

  5. Keep your card in a safe place: Keep your credit or debit cards in a safe place, such as a wallet or purse, that you keep with you. Don’t leave them in your car or out in the open at home. This can help prevent unauthorized access.

  6. Monitor your accounts regularly: Log into your account and review your recent transactions regularly. If you determine you didn’t make a particular purchase, contact your bank or credit card issuer immediately.

  7. Choose cards with zero liability protection: Most banks and card issuers offer zero liability protection, which means you aren’t responsible if a thief steals your card info and buys things. Opting for a card with this benefit could provide added protection.

If you suspect your card has been skimmed, take action quickly. Call the number on the back of your debit or credit card to speak with a representative immediately. Notify them of any fraudulent charges that have appeared on your card, and discuss how to get them removed. The bank will likely cancel your card and issue you a new one.

Once you’ve spoken with your bank or card issuer, you can also file a report with your local police department and contact the business where you think the incident occurred. It can be hard to pinpoint exactly where or when your credit card may have been skimmed, but you may recall a suspicious issue with a payment terminal.

After you’ve received your new card, ensure that you’re following the above steps to protect your information. Consider placing a temporary freeze on your credit report as an additional measure of protection.

While tapping your card at a payment terminal may offer more protection than swiping or inserting it, thieves could still access your card information via a process called shimming. With this technique, a small, often undetectable device (or shim) is placed in a terminal to capture card information. Shimming started once chip cards became widely used.

You might be able to tell if a payment terminal has a card skimmer by visual or tactile inspection. If a keypad looks misaligned, the keys are hard to push, the tape across a terminal is broken, there are suspicious scratches, or the payment slot looks different from the others, it's possible the terminal has been compromised.

Yes, a credit card skimmer could access your three- or four-digit CVV code. When you swipe your card at a payment terminal, it accesses your card number, expiration date, CVV, and your name to send to the payment network. A compromised terminal with a skimmer attached could easily grab and transfer this information to a third party with poor intentions.

This article was edited by Alicia Hahn

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