Fraudulently taking card details using a device called a “skimmer” or the act of “skimming” has been on the rise, with some retailers no longer taking cash, and the continued convenience of paying with a card. Scammers will illegally install a skimmer into a payment terminal where an unsuspecting victim will swipe or insert their card to capture card details via the magnetic stripe or chip, and sometimes even more advanced models can track the input of PINs. And this is just the beginning. This information is then downloaded and used to create counterfeit cards, to sell financial information, or to attempt to drain your account.
It’s important to understand what to look for when making purchases to avoid skimming, so we’ll let you know the red flags and what to do if you think you may have been scammed.
Skimming can happen almost anywhere you swipe, insert, or tap your credit or debit card, but some locations are more vulnerable than others, especially those with unattended or lightly monitored machines. Knowing where to be extra cautious can reduce your risk of fraud significantly.
Common locations for card skimming include:
High-risk scenarios include:
Always be alert when using your card, especially in these environments. A quick scan of the card reader and a few seconds of caution can help you avoid becoming a skimming victim.
Criminals use discreet, often unnoticeable devices to steal your card information, and they’re getting more sophisticated by the day. These tools are designed to look like part of the machine, making them difficult to spot with an untrained eye. It’s a misconception that chip cards are less vulnerable to skimming, as scammers have also made chip reader skimmers to keep up with credit card companies.
Unfortunately, once skimming occurs, fraud can happen within minutes. That’s why it’s critical to act fast if you suspect anything unusual and to take steps now to protect your card before scammers get the chance.
So what should you be looking for while you are on the lookout for a device trying to snatch your information? Visual cues are critical. If you notice that the card slot at the payment terminal seems loose or if it looks like it is too bulky for the main component of the machine, that’s a red flag. Some devices have to be physically installed, so if you are seeing signs of tampering like cracked pieces, extra screws, or even, in some cases, tape or glue, you should be wary of the terminal.
At first glance, does it look like the point where you are swiping or inserting your card is streamlined to the rest of the device? If it is a different color, looks mismatched, or does not seem like it is attached properly in one piece, don’t place your card into it. Ask the cashier if they accept other forms of payment, or maybe rethink your purchase.
While skimming scams are increasingly sophisticated, there are still simple and effective ways to reduce your risk. By developing smart habits and using modern payment technology, you can stay one step ahead of fraudsters.
Use these questions to guide your purchase behaviors.
Are you checking your bank and credit card accounts regularly? Take the time to periodically log in to your online or mobile banking account to scan for unauthorized transactions. The sooner you spot suspicious activity, the faster you can respond. We recommend setting up transaction alerts on your phone. With Addition Financial’s digital banking, you can enable real-time alerts for purchases, withdrawals, or unusual activity, helping you catch fraud before it escalates.
By staying alert and proactive, you can dramatically reduce the chance of falling victim to card skimming. A few quick precautions can save you a lot of time, stress, and money down the road.
If something feels “off” when you’re using your card or you notice strange activity on your account, don’t ignore it. Quick action is key to minimizing damage and securing your finances.
Some red flags that could indicate you've been a victim of card skimming include:
To help assess whether you may have been skimmed, consider:
If you answer yes to any of these, it's smart to take action right away.
Taking swift action can limit the financial and emotional toll of skimming fraud and help prevent others from becoming victims, too. An easy way to remember these steps is the 3 first three words, “freeze, contact, report.”
At Addition Financial, we are always looking out for your money and its security. Remember to be proactive, informed, and cautious when making regular purchases, especially if paying somewhere new or unfamiliar. The easiest way to protect yourself is to pay attention to your accounts; that way, you can notice any issues and rectify them quickly. We will work quickly if your card has been compromised to get you a new card or freeze your accounts. Through our digital banking tools, you can have full transparency with notifications and other resources.
Addition Financial’s Security Center is your go-to hub for guides on preventing theft and fraud. It provides step-by-step instructions for actions such as placing credit freezes, filing disputes, and recovering from the theft of personal or financial information. You may know now what to look for when hunting for skimming devices, but do you have a plan for if a different type of financial emergency strikes? Check out our Emergency Savings Plan Builder to prepare yourself for life’s what-ifs.