Card skimming is a criminal activity to illegally capture data from a credit or debit card. This can occur when a discreet device called a skimmer is attached to a card reader, such as an ATM or a point-of-sale (POS) terminal. The illegal practice enables criminals to clone cards and make unauthorised transactions.
According to Australian Payments Network, counterfeit and card skimming fraud in Australia increased by 73% at a cost of $8.3 million in financial year 2023.1 Card skimming is one of the many potential reasons it’s important to safeguard yourself.
This article will explain:
Card skimming operations may target busy areas like ATMs, petrol stations, shopping centres, or payment terminals in shops. Here’s how it can happen:
Before paying for items, inspect card readers for odd attachments or loose parts.
Chip-enabled cards may be at risk, too. ‘Shimming’ is when thieves place a thin device with an embedded microchip inside a card reader. This can allow criminals to intercept data from modern, more secure chip-enabled cards. Watch out for difficulty inserting or removing cards from chip readers and report such issues to card issuers immediately.
There are several potential ways individuals can minimise their risk of getting skimmed. People could:
Card-skimming victims may be prone to several unwanted impacts.
People who unfortunately fall victim to card skimming need to act quickly:
Contact a bank representative as soon as possible to inform them to lock the card and freeze the account. Some financial providers may allow people to immediately lock the card from within their digital banking app.
Report card fraud to all relevant parties, including financial institutions, relevant retailers, and government organisations, such as the National Anti-Scam Centre.
Change the password of any accounts linked to the skimmed card. People may also need to update direct debit payments, streaming subscriptions, and bills with new card information.
With card skimming rising sharply in Australia, people need to stay extra vigilant about this risk. Remember: People can safeguard their card details by using cashpoints carefully and checking for signs of tampering, shielding and never sharing PINs, and monitoring accounts for suspicious activity.
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