Credit Card Skimming

Skimmers are illegal card readers that are mounted on top of payment terminals (POS terminals), such as those found at gas pumps, grocery stores, and other places you use your credit or debit card, including ATM machines.  They are designed to blend into the terminal so they can go undetected.  These malicious card readers grab data off a credit or debit card’s magnetic stripe without your knowledge. Sometimes they are used in conjunction with a small pinhole camera designed to capture your PIN number as you enter it. The skimmer is later retrieved by the criminal, who then sells the stolen data or uses it to make unauthorized online purchases. You won’t know your information has been stolen until you see an unauthorized transaction on your bank or credit card statement or receive an overdraft notice.

Shimmers work similarly to skimmers, but rather than being attached to the outside of a POS terminal, these thin devices slip into the card reader, making them even harder to detect.

There are also handheld skimming devices that an unscrupulous store employee or restaurant server may use to take a second swipe of your card after you present it for payment. These workers have often been recruited by a criminal ring with promises of making hundreds or thousands of dollars and are paid based on how many credit card/debit card numbers they are able to steal. 

How to Protect Yourself

  • Inspect the payment terminal to make sure it hasn’t been tampered with. If it is loose, crooked, damaged, or doesn’t match those of nearby terminals, don’t use it. Also, if the keypad feels thick or the numbers are hard to press, that may indicate the presence of a skimmer.
  • If possible, tap your card instead of swiping or inserting it at the POS terminal.
  • Cover the keyboard when entering your PIN number.
  • If you’re concerned about skimmers at the gas pump, pay inside rather than at the pump.
  • Consider paying cash or using a mobile wallet, such as Google Pay or Apple Pay, instead of swiping your card.
  • Monitor your credit card and bank accounts regularly to check for unauthorized charges.
  • Sign up for text alerts from your bank or credit union, so you will be notified of suspicious transactions or large withdrawals or purchases. But be careful…since scammers sometimes impersonate an agent from a well-known financial institution, if you do receive a notification that purports to be from your bank or credit union, do not clink on any links, call a number you have been texted, or give out any sensitive information to someone who calls you out of the blue; instead, contact your bank directly via a verified phone number.

What to Do If Your Card was Compromised

If your credit or debit card has been compromised, report it to your bank or card issuer immediately and request that they reverse the charges for any fraudulent transactions, cancel the compromised card, and issue you a new one. Federal law limits your liability if your credit, ATM, or debit card is lost or stolen, but your liability may depend on how quickly you report the loss or theft.

Keep in mind that the sale and use of your skimmed credit card data may happen quickly, or not for weeks or months later.  Be vigilant about reviewing your accounts frequently.

Laws

Skimming and skimming-related credit card activities violate federal and state laws. Some of the possible criminal violations in Georgia include:

  • O.C.G.A. Section 10-15-4 Prohibited Activities Involving Magnetic Strip or Stripe on Payment Card (skimming)
  • O.C.G.A. Section 16-9-31 Financial Transaction Card Theft
  • O.C.G.A. Section 16-9-32 Forgery of a Financial Transaction Card
  • O.C.G.A. Section 16-9-33 Financial Transaction Card Fraud
  • O.C.G.A. Section 16-9-34 Criminal Possession of Financial Transaction Card Forgery Devices
  • O.C.G.A. Section 16-9-35 Criminal Receipt of Goods and Services Fraudulently Obtained
  • O.C.G.A. Section 16-9-36.1 Criminal Factoring of Financial Transaction Card Records
  • O.C.G.A. Section 16-9-121 Identity Fraud