The Hidden Dangers of Skimmers and Shimmers

Introduction:

In recent years, there has been a growing concern about skimmers and shimmers, the notorious devices used by criminals to steal personal financial data. You may have come across alarming stories on the local news, leaving you wondering about the true extent of this threat. In this blog post, we'll explore the reality behind skimming and shimming, understand their implications, and discuss effective measures to protect yourself from falling victim to these scams.

Understanding Skimmers and Shimmers:

Skimmers are deceptive devices attached to the exterior of credit card readers, designed to capture data from the magnetic stripe of your card. These devices store your information for later retrieval by criminals, who can then use it to replicate your card or make unauthorized online purchases. Skimmers are relatively simple to produce, as malicious actors can disassemble legitimate credit card readers and repurpose their components.

However, skimmers have limitations. They cannot access chip data, which led to the emergence of shimmers. A shimmer is a thin device that resembles a credit card and is placed between your card and the chip reader. Unlike skimmers, shimmers require a higher level of technical expertise to manufacture. Their slender profile allows them to go undetected, making them more versatile and capable of being used in various settings, including convenience stores and grocery stores.

Detecting Skimmers and Protecting Yourself:

Given the diverse nature of skimming and shimming devices, it's challenging to generalize their operation. Nevertheless, there are certain precautions you can take to minimize your risk:

1. Check for Loose Parts: Before using an ATM, inspect the card entry slot for any loose or suspicious components. Give it a gentle shake to ensure nothing seems out of place.

2. Test the Keypad: Pull at the edges of the keypad to check for any tampering. Cover the keypad when entering your PIN to prevent potential camera-based fraud.

3. Avoid Using Your PIN: Whenever possible, opt for credit transactions instead of debit. By avoiding PIN usage, you reduce the risk of your PIN being captured by criminals.

4. Monitor Your Statements: Regularly review your credit and debit card statements, keeping an eye out for any unauthorized charges. Promptly report any discrepancies to your financial institution.

The Prevalence of Skimming and Shimming:

Determining the exact prevalence of skimming and shimming incidents is challenging due to limited data availability. However, it remains a significant issue in the United States, especially since many ATMs still rely on magnetic stripe cards. In contrast, several European countries have phased out magnetic stripe usage.

To put things into perspective, in October of this year alone, California experienced a staggering six million dollars in losses due to skimming. Furthermore, authorities in California are recovering around 300 skimmers every month. Nationally, the analytics company FICO reported a 759% increase in card skimming fraud during the first half of 2022, with more than half of the incidents occurring in California.

Conclusion:

While skimming and shimming incidents might be relatively rare on a broader scale, localized outbreaks can occur. The most critical step in protecting yourself is to remain vigilant and closely monitor your credit and debit card statements for any suspicious activity. Avoiding PIN usage and tapping when possible can also mitigate your risk. Lastly, never underestimate the importance of physically safeguarding your credit or debit cards to prevent opportunistic theft.

By staying informed and taking proactive measures, you can significantly reduce the chances of falling victim to skimming and shimming scams. Remember, your financial security is in your hands, and taking precautions is always better than dealing with the aftermath of identity theft and fraud.