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With identity theft more prevalent than ever, it is important to be aware of some of the schemes that scam artists use. Recently, an ATM scheme used to steal personal banking information, known as “ATM Skimming,” has been reported as being on the rise in New York, California, and Florida. While this scam has not been prevalent in the Midwest, it is still important to educate yourself so you are always aware of the warning signs of scams. 

How Does ATM Skimming Happen?
A “skimmer” is a small device that goes over the normal card reading slot of an ATM and reads your card’s magnetic strip. The skimmer is used to capture your ATM card number and is disguised to look like normal ATM equipment. At the same time, a wireless camera, hidden behind a brochure holder, is mounted in a position to view ATM PIN entries. Often, the scam artists will sit in a nearby car receiving the information wirelessly transmitted from the skimmer. They are able to copy the information stored on the magnetic strip of the ATM cards and use the PIN numbers to withdraw funds from an account in a very short time.

Skimmers can also be handheld devices that a dishonest merchant can keep in his pocket. For example, while charging your card while you’re out at dinner, a scam artist can run your card through a skimmer as well.

How Can You Protect Yourself?
As previously stated, ATM skimming has not been on the rise in the Midwest, however, it is important to always be aware of the ways you can protect yourself from being scammed. Here are some of the ways to avoid becoming a victim of a skimming scam:

• Use secure ATMs under video surveillance, inside a financial institution, or in a high-traffic area. They're less likely to be tampered with because thieves have to take more risk installing skimmers where there are security cameras or other people around.

• Cover the ATM keypad as you're entering your PIN, just in case there's a hidden camera around.

• If something looks suspicious, find another ATM. Skimming devices will stick out a little bit from an ATM. Don't fall for a poor fitting device (or a sticker or sign that says "Swipe Here First" or “Use This Machine Only”).

• Call the financial institution immediately if a machine keeps your card and report it.

• Don't accept "help" from anybody hanging around the ATM. They could be a scammer saying they were also having trouble and tell you that you just need to enter your PIN again.

• If in doubt, keep your eyes on your card. If you have a bad feeling about a merchant, don't let them walk off with your card - even if it’s just for a few seconds.

To see photographs of what an ATM skimmer looks like, and the way the scam artists pull-off this type of scam, please click here to visit The University of Texas Police Department's website.

If you believe a skimmer has been added to an ATM, please contact local authorities immediately or the financial institution that owns the ATM.
 

Sources:
www.bankrate.com, "Skimming the Cash Out of Your Account," Laura Bruce, March 26, 2003, http://www.bankrate.com/brm/news/atm/20021004a.asp

www.about.com, "Skimming Scams," Justin Pritchard, http://banking.about.com/od/securityandsafety/a/
skimmers.htm?p=1

www.texas.edu, "ATM Scam," http://www.utexas.edu/police/alerts/atm_scam/

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