What Is ATM Card Skimming?

14 December, 2023

ATM card skimming refers to the fraudulent activity of capturing someone’s card information from its magnetic strip along with the PIN (Personal Identification Number) entered by the user. The scammer uses this information against the targeted individual using card cloning or conducting unauthorized transactions digitally.

How does card skimming work?

To prevent being a victim of any fraud, you must know the mechanics of the scam itself. Card skimming can happen while transacting via an ATM and swiping your card through a PoS (Point of Sale) machine at any merchant.

The following is the typical mechanism via which ATM card skimming works -

1. Installation of card skimming device - Scammers must first install a card skimming device on the targeted ATM. The device is designed such that it looks like a part of the ATM itself. Some technologically advanced scammers can now also fit in the skimming devices inside the card slot of the ATM.
   
   

2. Collection of data - Once the scammers have mounted the skimming device on an ATM, they can now collect all the data of ATM cards swiped through such an ATM.
   
   The skimming device collects all the card-related information on the card’s magnetic strip and notes your PIN. Scammers often add a keylogging device on top of the ATM’s keypad. The keylogging device records the order in which you have pressed the keys, which scammers use to decode your PIN.
   
   

3. Transfer of data - Once the scammers have collated the data, the scammer must transfer the recorded data into their systems. The process of moving depends on the technology used for the skimming device.
   
   Earlier, scammers had to physically access the skimming device to download all the data. But, with the latest advancement in technology, scammers can now mount skimming devices capable of transferring this data wirelessly. Thus, eliminating the need for the scammers to physically visit that ATM ever again!
   
   

4. Cloning of card and unauthorized transactions - After gaining access to your sensitive information, scammers can either create a fake clone of your card or use it for digital transfers.
   
   Using card cloning, scammers create an exact copy of your card with the same information as the one in your original magnetic strip. Since the scammers also have access to your PIN, they use this cloned card at different ATMs and PoS terminals to make fraudulent transactions.
   
   Scammers can also make online transfers from your account by logging in to your banking profile using the card details. Often banks provide the option to sign in using your Debit Card and PIN, which scammers also use to gain access. Once the fraudsters have logged in, they will transfer the money from your account into their bank account!
   
   

Tips to save yourself from ATM card skimming

ATM card skimming frauds do sound scary. However, it is relatively simple to save yourself from such fraud. Banks and regulators are constantly adding and improving their security features to provide a safe experience.

But you, as a user, are also responsible for the safety of your account. The following are some simple tips you can use to reduce the chances of becoming a victim - 

4. Inspect the machine - Before you enter your card in the ATM, take a closer look at the card slot. You should physically check whether a device has been mounted on top of it. If you see any signs of tampering with the machine, do not transact using that ATM. Also, report such sightings to the bank and relevant authorities immediately!
   
   

5. Anti skimming device - You should try to deal with ATMs from reputed banks and institutions. Over time, leading banks have developed multiple anti skimming devices that are installed on the majority of their ATMs. Such devices prevent scammers from installing any skimming device on the ATM.
   
   If you are transacting with a bank that has anti skimming devices installed on its ATM, then your chances of becoming a victim are lower. You can always go for HDFC Bank Cards, as HDFC Bank has always made the effort of equipping their ATMs with anti skimming devices.
   
   

6. Contactless payment - Try to make contactless payments via your cards, wherever possible. By not inserting your card in every PoS terminal, you can reduce the chances of giving your data to a card-skimming device.
   
   

7. Banking alerts - Always keep your bank alerts switched on. By receiving live alerts for any transaction, you can know of any fraudulent transaction in real time. If you ever receive an alert for a transaction you never made, report it to your bank and lock your card immediately to prevent further loss.
   
   

8. Stay alert - It is crucial to stay aware of all the latest scam techniques being used by fraudsters. To stay updated, you can use HDFC Bank Vigil Aunty, which not only keeps you informed about new scam modes but also what can you do to prevent them and steps you can take if you ever become a victim.
   
   

9. Hide your PIN - You should never disclose your PIN to anyone. Cover the keypad with your hand while entering your PIN in an ATM or PoS terminal. Writing down your PIN on any paper can also potentially expose you to scammers.
   
   

10. Change your PIN - By changing your card’s PIN at regular intervals, you can add an extra layer of security. If you ever feel your details have been exposed, change the PIN immediately.
    
    

HDFC Bank Vigil Aunty can help you understand new scam types, what you can do to avoid them and what steps you can take if you become a victim. Always remember to deal with reputed financial institutions and stay vigilant about your money!


​​​​​​​*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.