How to protect against credit card skimmers
Over the Christmas holiday weekend, Roche Bros. Supermarkets found that credit card skimmer devices used to steal financial information had been placed on self-checkout kiosks at stores in five towns west of Boston, in just the latest reported incident of attempted “skimming” in Massachusetts.
Earlier this month, Chelsea police warned that a skimmer device was found at a Market Basket there, and in
November skimmers were detected at a Walmart in Concord, N.H., and at Market Basket stores in Concord, N.H., and in Massachusetts communities including Haverhill, Reading, and Somerville.
None of the recent local incidents have led to reports of financial information being stolen, but in other cases, criminals using skimmers have been prosecuted for stealing millions of dollars from unwitting consumers. Here’s what you need to know to protect yourself.
What is a skimmer?
Skimmers are devices placed over the slot where a customer inserts a credit or debit card at an ATM, gas pump, or checkout counter, according to the FBI, which estimates that skimming costs consumers and banks more than $1 billion each year.
Skimmer devices take the card number and other data from a card’s magnetic strip, which then can be used to steal the victim’s identity or create fake credit, debit, or EBT cards that can be used to steal money from accounts. Thieves may also install fake keypad covers or pinhole cameras to record personal identification numbers, or PINs, and zip codes as they are entered into the system, according to the FBI.
Some skimmers have Bluetooth technology that allows them to send the stolen information to a criminal’s phone or computer without requiring them to come back to retrieve the data, according to Capital One.
How to spot a skimmer
Skimmers can be hard to detect because they are designed to look like the rest of the machine. When you use a credit or debit card to pay or to take money out of an ATM, you should look closely at the equipment to make sure it looks like it should and that there are no additional card readers or cameras present, according to Nationwide Mutual Insurance Company. The Federal Trade Commission recommends comparing the card reader to others nearby, if possible, to see if it looks different because of an added element.
Watch out for any reader that seems loosely attached or wiggles when you move it. If you see something that seems out of place on the reader, you can give it a tug to see if it detaches. Skimmers are usually attached with tape or a light adhesive and can often be removed with minimal force, according to Nationwide.
At gas pumps, where skimmers can be concealed inside the machine, look for security tape placed over the panel where the card reader is. If the reader has been tampered with, the security tape will read “void,” according to a guide from the Los Angeles County Department of Consumer and Business Affairs.
How to keep your financial information safe
Using modern chip-enabled credit cards is safer than swiping, because the chips are encrypted, and paying with a contactless card, smartphone app, or digital wallet puts even more distance between your personal data and scammers. If you have to use a debit card at a conventional card reader, you should cover the keypad when you enter your PIN, according to the Los Angeles County guide, which also recommends signing up for notifications that will let you know when your card is charged.
The guide also suggests using credit cards instead of debit cards, because credit cards don’t require PINs and may provide greater fraud protection. If you must use a debit card, the FBI recommends running it as a credit card so you don’t have to enter the PIN.
If you are using your card at a gas station, it is safer to pay inside than at the pump, according to a guide from the credit reporting agency Experian. If you pay at the pump, the FBI recommends using one close to the store and in employees’ direct line of sight, where it is less likely to be targeted by skimmers.
Paying with cash is, of course, always safer for your financial data than using a card.
What if you spot a skimmer?
If you suspect you have found a skimmer attached to a card reader, you should notify police and, if possible, the business where the skimmer is located. If you suspect you may have already fallen victim to a skimmer, you should contact your bank so it can prevent further fraud, Nationwide said.
What if your information is stolen?
You should check your credit card statements regularly to watch out for suspicious charges. You can dispute any fraudulent purchases and generally won’t be liable for them if you notify your card issuer quickly, so it’s important to report them as soon as possible, according to Experian.