How Skimming and Shimming are Stealing Your Information
Protect yourself from card fraud! Learn about shimming, how it differs from skimming, and tips to avoid being targeted. Stay safe and monitor your accounts.
If you use a credit or debit card for your purchases, you’ve probably heard of skimming, a type of fraud where scammers steal your card information using a device attached to a card reader. Skimming can happen at ATMs, gas pumps, or anywhere you swipe your card. But there is an updated version of skimming that you may not have heard of: shimming.
How Shimming is Different than Skimming
Shimming is very similar to Skimming but instead of reading the magnetic strip, a scammer attaches a shim (a card-sized device) into the slot where you enter the chip side of your credit or debit card. When you insert your card, it reads your chip to copy and save like your PIN and card number. They use this information to make purchases with your card numbers and account information.
How to Avoid Being Targeted
Inspect the ATM, gas pump, or credit card reader before using it and be suspicious if you see anything loose, crooked, or damaged, or if you notice scratches or adhesive or tape residue.
Since these devices are put over the card reader and pin pad, be cautious if the buttons seem harder to press. This could mean that there may be a skimmer or shim attached.
When possible, use an ATM or card reader at an inside location where it’s harder for criminals to install their devices. Be careful of card readers in high traffic or tourist areas — they are a popular target for skimmers.
If your card isn’t released after the transaction completes or after hitting “cancel,” immediately contact the financial institution that issued the card.
Always be cautious when using your card and check for skimming and shimming devices. Scammers use cameras, keypad overlays, and skimming devices — like a realistic-looking card reader placed over the factory-installed card reader on an ATM or gas pump — to capture the information from your card’s magnetic strip without your knowledge and get your PIN.
Stay Safe from Shimming and Skimming
To protect yourself from shimming or skimming, here are a few tips you can use to safeguard your personal and financial information:
Sign up for account alerts to stay in the know about your account balance, transactions, and more.
Keep a close eye on your bank and credit accounts for suspicious activity.
Check your online statements regularly to make sure there are no suspicious charges. If you see any, report them immediately.
Be wary if your card gets stuck in a chip reader. If the reader seems to have a tighter than normal grip on your card, there could be a shim inside. You may want to cancel your transaction and notify the business.
Use contactless payment methods. Contactless payment methods are not vulnerable to shimming. Try using "tap-and-go" features on your credit card instead of swiping or inserting your card. You can also use contactless mobile services such as Apple Pay or Samsung Pay to tap and pay.
When entering your PIN, block the keypad with your other hand to prevent possible hidden cameras from recording your number.
Set up your mobile wallet to easily and securely make purchases with your phone.
By following these tips, you can protect your information and keep an eye out for skimming and shimming. Remember to monitor your accounts regularly and report any suspicious activity to your credit union. For more tips on recent scams and how you can protect yourself, visit our Fraud Center.