ATM skimming is a type of payment card fraud, whereby thieves collect data from credit, debit and/or ATM cards. The criminals commit their crimes by rigging machines with a hidden recording device, which is essentially another reader placed within the machine. Once taken, the stolen information is used to produce fake cards and spend victims’ money or even take cash straight from their bank accounts. 

Methods of ATM Skimming

Thieves employ several techniques to steal data that’s embedded in the magnetic stripe on credit and debit cards:

  • A plastic overlay placed over the ATM keypad captures PINs as entered.

  • An overlay placed over the card insertion slot records the data on the magnetic stripe.

  • An overlay that covers the whole ATM faceplate is embedded with cameras, as well as card-slot and keypad overlays.

In addition to physical skimming devices, some sophisticated thieves opt for installing tiny cameras on an ATM to record keypad entries and your fingers as you type. In some cases, skimming devices don’t even need to be physically connected to the card reader. Instead, as they collect consumers’ data they transmit the information to the thief via Bluetooth technology.

Even chip-enabled payment cards, which are more secure than magnetic stripe cards, are vulnerable to theft. By placing a super-thin shim between the chip in a stolen card and the chip reader inside the ATM, thieves can capture your PIN and other card information. These devices are called “shimmers,” and as chip technology becomes more prevalent, they are starting to supplant skimmers as thieves’ choice tool.

Common Skimmer Scams

In addition to ATMs, thieves target other areas where you may insert your card including:

  • Gas pumps: While paying at the pump is convenient, the locations away from the store are also especially convenient for criminals to place their skimming tools. The method is the same as an ATM: The installed skimming device records all your financial information.

  • POS terminals: While these terminals can appear more secure since they are directly under the monitoring of employees, the employees themselves might be working with criminals to install a skimming device.

  • Electronic Benefits Transfer (EBT) cards scams: In addition to targeting personal credit and debit cards, thieves also prey on individuals’ government assistance cards. In March 2025, a scam in Rhode Island stole around half a million dollars from more than 1,800 families. 

 Ways to avoid ATM Skimming

To avoid becoming a victim of ATM skimming and debit card skimming in general, review your bank statements regularly for suspicious transactions, sign up for account alerts and follow these tips:

  • Use debit and credit cards with chip technology, which is more secure.

  • When making a purchase at a store, run your debit card as a credit card and do not enter your PIN, or use a credit card to begin with.

  • Use a mobile payment system such as Google Pay, Apple Pay, Samsung Pay or PayPal.

Besides using safer payment methods, there are some common-sense precautions to avoid becoming an ATM skimming victim:

  • Use your eyes and trust your gut. Watch out for any signs of tampering, including tape or glue. In addition, if there is anything hanging from the exterior of the ATM, or if you sense something doesn’t look right, you’re better off keeping your card in your wallet.

  • Avoid using ATMs located in dark, out-of-the-way places, in bars and restaurants or in areas with lots of tourists. The safest place to use an ATM is at your bank. Your bankers at Montgomery Bank inspect our ATM’s daily for any noticeable tampering. While this still doesn’t rule out sophisticated schemers, it is your best option for ATM transactions. 

  • If the ATM does not immediately return your card after the transaction, waste no time in reporting it to the card issuer.

  • Use a gas pump that is within view of the gas station attendant or pay inside if possible.

  • Cover the PIN pad when you enter your PIN — even if nobody is around.

Bottom line

Whether you are using a bank ATM, a point-of-sale terminal at a merchant or doing cardless transactions, there is always a risk of fraud. Chip-enabled credit and debit cards are safer than magnetic stripe cards, but even those can be hacked. Fortunately, you can minimize your risk exposure by following the tips and advice outlined here and being mindful of your surroundings. Above all . .

Stay Alert, Stay Vigilant, and Stay Safe!

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