What is card skimming?

This article includes tips, suggestions and general information. We recommend that you always do your own research and consider getting independent tax, financial and legal advice before making any important decision.

Though card skimming incidents declined by 46% in the UK between 2013 and 2023¹, counterfeit card losses totalled £4.7 million in 2022.

Card skimming is one of the many potential reasons it's important to safeguard yourself.

This article will explain:

• How card skimming happens and who it can affect
• How to spot (and act on) suspected card-skimming
• Important next steps for card skimming victims

How card skimming works and what to look out for

Card skimming operations may target busy areas like ATMs, petrol stations, shopping centre kiosks, or terminals at shop tills. Here’s how it can happen:

• By attaching small, inconspicuous skimming devices to cashpoints, thieves can capture data from the magnetic stripe of unsuspecting victims' cards.
• Such skimmers have miniature card readers and are often accompanied by hidden cameras or keypad overlays to capture PINs as people type them in.

Before using a POS terminal, inspect the card reader for unusual attachments or loose parts.

Chip-enabled cards may be at risk, too. 'Shimming' is when thieves place a thin device with an embedded microchip inside a card reader. This can allow criminals to intercept data from modern, more secure chip-enabled cards. Watch out for difficulty inserting or removing cards from chip readers and report such issues to card issuers immediately.

How to reduce the risk of card skimming

There are several potential ways individuals can minimise their risk of getting skimmed. People could:

• Use ATMs and machines carefully: Always shield PINs with a hand and avoid unbranded ATMs in unusual locations. Look out for unusual features on keypads.
• Secure account details: Never write down PINs or store PINs on shared computers. Check statements and balances to screen for unusual activity, such as unauthorised credit card transactions.
• Use transaction alerts: Activate transaction alerts on accounts to receive notifications for any unusual activity.
• Update card PINs: Changing card PINs regularly may provide enhanced security and minimise the risk of unauthorised access.

What happens when cards are skimmed?

Card-skimming victims may be prone to several unwanted impacts.

• Criminals may make unauthorised transactions if they successfully skim — and clone — a card. This may lead to financial losses that may or may not be recoverable.
• In some situations, criminals may use skimmed credit cards so rapidly that they max out a victim's credit limit. This can have negative effects on a person's credit score, which may take time to repair.

Immediate next steps for card skimming victims

People who unfortunately fall victim to card skimming need to act quickly. Here are some actions to take:

Inform the bank and card issuer

Contact a bank representative as soon as possible to inform them to lock the card and get the account frozen. Some financial providers may allow people to immediately lock the card from within their digital banking app.

Report card skimming to authorities

Report card fraud to all relevant parties, including financial institutions, relevant retailers, and government organisations.

Update bills, subscriptions, and accounts

Change the password of any accounts linked to the skimmed card. People may also need to update recurring payments, subscriptions, and bills with new card information.

Keep money secure online and offline

Despite declining numbers of cases in the UK over the past decade, card skimming still remains a risk. People can protect themselves by using cashpoints carefully and checking for signs of tampering, shielding and never sharing PINs, and monitoring accounts for suspicious activity.