Card Skimmer

A card skimmer is a covert device placed over or inside a legitimate card reader — most commonly at ATMs, petrol station pumps, or retail point-of-sale terminals — that reads and stores the data encoded on a payment card's magnetic stripe as the card passes through. This data, combined with the cardholder's PIN (captured by a tiny hidden camera or a fake PIN pad overlay), gives criminals everything needed to clone the physical card.

Skimmers have become increasingly sophisticated: modern versions are thin overlays that fit flush with the card reader so victims notice nothing unusual, transmit captured data wirelessly via Bluetooth to a nearby fraudster who does not need to return to collect the device, and may remain in place for days or weeks. Some skimmers incorporate a miniature camera mounted in a fake fascia piece above the keypad.

Institutions and acquirers combat skimming through regular physical inspection of terminals, anti-tamper seals, jitter mechanisms in ATM card readers (which move the card back and forth to confuse skimmer read heads), and by transitioning to chip-and-PIN technology, which is significantly harder to skim than magnetic stripes. Consumers can reduce risk by covering the keypad when entering PINs, using contactless payments, and checking card readers for loose or unusual overlays before inserting a card.