Identity thieves are always finding new and creative ways to steal your personal information. But one old scheme continues to snag unsuspecting victims: card skimming. In its simplest version, the bad guys grab card numbers by planting devices, known as skimmers, that read and copy the data on a debit or credit card’s magnetic strip. In other cases, the crooks pay employees to reswipe customers’ cards through a skimmer.
More than 60% of card skimming occurred at ATMs in 2012, according to a recent FICO report. Thieves disguise the skimmer, often by placing it over the ATM’s actual card reader. Then, to record PINs as cardholders enter them, they install a tiny camera that has a view of the keypad or an overlay on top of the keys to log strokes. Before you swipe your card, check for signs of tampering by pulling on the card reader and its surrounding area to see if anything shifts or pops off. As you punch in your PIN with one hand, shield the keypad with the other to block the view of any camera.
Most important, review your credit card and bank statements to spot suspicious transactions. When possible, use a credit card rather than a debit card at potentially vulnerable payment terminals, such as gas pumps, or if the card will disappear from your sight -- say, when a restaurant server carries your plastic to the register. Credit card transactions have stronger federal protections against fraud; your liability is limited to $50 (American Express, Discover, MasterCard and Visa have zero-liability policies). Your bank will likely reimburse you for a fraudulent debit card transaction that you report promptly, but you��ll have to do without the money until the refund comes through.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
-
The Most Popular Apps for Retirement Planning in 2025A J.D. Power survey ranks retirement planning apps based on customer service and satisfaction. Does your financial app make the cut?
-
Don't Disinherit Your Grandchildren: The Hidden Risks of Retirement Account Beneficiary FormsStandard retirement account beneficiary forms may not be flexible enough to ensure your money passes to family members according to your wishes. Naming a trust as the contingent beneficiary can help avoid these issues. Here's how.
-
Seven Things You Should Do Now if You Think Your Identity Was StolenIf you suspect your identity was stolen, there are several steps you can take to protect yourself, but make sure you take action fast.
-
The 8 Financial Documents You Should Always ShredIdentity Theft The financial documents piling up at home put you at risk of fraud. Learn the eight types of financial documents you should always shred to protect yourself.
-
How to Guard Against the New Generation of Fraud and Identity TheftIdentity Theft Fraud and identity theft are getting more sophisticated and harder to spot. Stay ahead of the scammers with our advice.
-
12 Ways to Protect Yourself From Fraud and ScamsIdentity Theft Think you can spot the telltale signs of frauds and scams? Follow these 12 tips to stay safe from evolving threats and prevent others from falling victim.
-
Watch Out for These Travel Scams This SummerIdentity Theft These travel scams are easy to fall for and could wreck your summer. Take a moment to read up on the warning signs and simple ways to protect yourself.
-
Amazon Resale: Where Amazon Prime Returns Become Your Online BargainsFeature Amazon Resale products may have some imperfections, but that often leads to wildly discounted prices.
-
How to Guard Against Identity Theft in 2025Scammers are getting better at impersonating legitimate businesses.
-
Roth IRA Contribution Limits for 2025Roth IRAs Roth IRAs allow you to fund your retirement with after-tax dollars while you're working, and then withdraw those contributions and earnings tax-free when you retire. Here's a look at 2025 limits and income-based phaseouts.
