Business Security Information

What is ATM Skimming?

ATM Skimming involves a device called a skimmer to gather and store the information from your ATM card.  A crook also has to install a hidden camera, usually a wireless camera, pointed at the keypad so your pin number can be gathered or transmitted.  There are some small cameras or hidden cameras on the market that have built in flash drives or digital video records that can store information so the bad guy does not have to be nearby to gather the PIN numbers.  Another method is to use a fake keypad or keypad overlays which, when slipped over the original keypad, can either transmit or store the information.  Watch this YouTube video to see an actual skimming device and hidden camera.

After the ATM card information and PIN are gathered, fake cards will be made using this information, and the crook(s) will withdraw money from your account.  Most crooks prefer gathering ATM or debit card information over credit cards since cash can be withdrawn immediately.  When credit card information is gathered, a purchase of some kind of merchandise must be made, either on-line or in person.  The items must then be sold or fenced to get the cash which means delayed gratification and accepting less than an item is worth.  The risk is also higher because of having to get the merchandise in person or shipping it to a location which increases the risk that it can be tracked back to the crook.

Be aware that skimming is not just done on ATM machines but has also been used at pay-at-the-pump locations and in restaurants by restaurant personnel using portable units to skim your credit card or debit card information when you pay.  Restaurants were the first places I heard about involving skimming because most sit-down restaurants have the waiter or waitress take your bill and credit or debit card to the counter to pay.  The card is then out of sight and out of your possession allowing someone to run the card through a portable skimmer. That is one of the reasons you see most stores and other retail locations having the customer run their debit or credit card through a card reader instead of the customer handing the card to the clerk to complete the transaction.

Protecting Yourself Against Skimming

Here are a few things you can do to protect yourself against skimming.   This list is not all- encompassing, but it will get you going in the right direction.

• First, if the slot where you insert the card looks out of place or different than usual, do not use it. The card slot may have sticky glue residue on the edges indicating someone has used adhesive to attach a skimming device.  The slot may be off-color or cheap looking compared to the rest of the machine.  If it does not appear right or if your gut tells you something is not right, go elsewhere.
• Make sure to cover your finger or fingers when you punch in your PIN number.  This will help block hidden cameras or someone near by with a telescope gathering the information.  A  hidden camera is not used in all cases–there have been cases where a person is located a distance from the ATM and views the punched in PIN code through some type of telescopic device.
• Monitor your accounts closely.  Keep them balanced so when you check your account balance you know if it is right or not.  Also, look at the individual transactions to make sure you made them.  If while withdrawing money you feel something is not right, or when reviewing your account something is not right, report it to your bank ASAP.
• When using pay-at-the-pump at a gas station, it is best to use a credit card or pay for the fuel at the register with a debit card or old-fashioned cash.

As always, be aware of your surroundings and be careful when using your ATM or debit card.

Other Methods of Fraud

Another method of fraud is related to using cards for paying for fuel at the pump.  Recently, wireless devices have been found inside the gas pump which allow the crook to sit near by and gather your information in real-time as you use your card at the pump.  There is usually nothing on the exterior of the pump that would indicate that the pump has been compromised.  If you are worried about this issue, I would use my card at the register.  For those business owners who own mini-marts or other similar type of fueling operations, you may want to look at having exterior surveillance cameras monitor the pumps when closed for business and record only when there is motion detected in this area.  A quick review of the video the next business day would give you some indication of whether you need to inspect a pump more closely.  You could also use some type of tamper indicator or tamper alarm on your pumps.

Two other methods have come to my attention recently. First, fake ATM’s have been set up in hotels and casinos.  The ATM’s look real and collect your information but do not dispense any cash.  The second is a little higher tech and involves the installation of malware on ATM’s.  So far, this has involved the person(s) gaining physical access to the ATM and installing specially designed malware.  The malware gathers card and pin information which is then gathered by the person(s) at a later time.  At this point, the malware method requires physical access to the ATM, but the malware may be developed in the future to spread through the bank’s ATM network.

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