Credit Card Skimming Increased 77% in 2023: Here’s What to Look For

Recent data reveals that debit card skimming continues its relentless climb upwards here in America. For the first half of 2023, the number of compromised cards has skyrocketed 77% ¹ compared to the same period in 2022.

That translates to nearly 120,000 additional unsuspecting consumers who have had their card details stolen in just six short months.

What’s worse is that they are getting even more efficient, now stealing more card numbers per skimming device deployed. The average number of compromised cards per skimming incident increased 48% compared to 2022.

You may have heard about skimming, but do you know what to look for?  Let me show you.

Here’s What to Look For

This videos gives a good overview and breaks down the parts of credit card skimmers. Notice both parts, the button pad and the card scanner.

When examining an ATM or gas pump, check for any parts that look loose, bulky, or out of place. These can be signs of a skimming device attached over the original card reader.

Another red flag is a keypad that feels thick or difficult to press, indicating a fake overlay designed to capture your PIN.

Look for small cameras or tiny holes above the keypad area, as criminals often use these to record you entering your PIN.

Lastly, give the card reader a gentle wiggle. If it moves or feels unsecured, it could be a skimmer.

Here is a more up-close video that highlights what to look for:

@twincoria Please stay alert they keep putting these things up, be very careful out there. #fraud #Creditcardfraud #skimmerdevices #fraudatpump #identitydef #stolencreditcard #fraudatgaspump #gasstationfrauders ♬ original sound – Cesar Coria

From Gas Stations to Bank ATMs

Once primarily targeting non-bank ATMs, these devious skimming devices are now making their way to bank ATMs as well (ref).

In a troubling development, bank ATM compromises have doubled over the past year (ref). States that were already notorious for such activities, like California, Florida, and New Jersey, have all witnessed significant increases in 2023. Meanwhile, new hotspots such as Virginia and Texas have joined the top five for the first time (ref).

But this alarming trend isn’t confined to America. Fraudsters are casting a wider net, with countries like the UK, Australia, and India also reporting spikes in ATM and point-of-sale skimming incidents. What was once a localized issue is swiftly becoming a global epidemic.

Tips to Protect Against Skimming

So how can everyday consumers and financial institutions help prevent credit card skimming? Here are some tips:

• Use chip-and-PIN when possible instead of swiping. The chip makes your card data much harder to steal.
• Inspect ATMs and card readers before using. Check for anything unusual like an extra attachment. Avoid machines that seem suspicious.
• Opt for contactless tap-and-go payments when you can. This better protects your card’s magnetic stripe.
• Banks should use real-time monitoring to swiftly identify compromised cards and alert customers to prevent losses.
• Consider sending customers proactive warnings about new skimming hotspots or techniques. Forewarned is forearmed.

By working together and staying vigilant, both consumers and banks can help thwart fraud and protect hard-earned money.

This troubling trend seem to show no signs of slowing, so constant collaboration and education will be key.

Sources

1. fico.com