Skimmers and Shimmers Target ATMs: Here's How You Can Protect Your Finances

Quincy Jon, Tech Times 20 February 2024, 02:02 am

Credit and debit card information theft at Automated Teller Machines (ATMs) is on the rise, with fraudsters employing sophisticated devices like "skimmers" and "shimmers" to compromise financial data.

Skimmers, fake card readers attached to legitimate ATMs, target magnetic strip data in ATM cards, while shimmers focus on stealing chip data from newer cards, posing a significant threat to consumers' financial security.

Escalating Threat

Concerningly, card breaches increased by 77% in the first half of 2023 compared to 2022, as reported by American Banker. This frightening trend outpaces compromise incidence growth, showing a 48% increase in affected cards per incident.

(Photo : redspotted/Wikimedia Commons) Close-up of the keypad on an ATM on the station platform.

Andrew Latham, certified financial planner and content director at SuperMoney.com, was cited in the report, expressing deep concern about this ATM scam trend, highlighting the escalating expertise and boldness of modern fraudsters.

He attributes this rise to the accelerated digital transformation, intensified by the global pandemic, providing fraudsters with an expanded landscape for exploiting increasingly advanced methods.

TechTimes previously reported a comprehensive study conducted by charity Re-engage and the University of Portsmouth that has found that two-thirds of older individuals faced scams in the past year, leading to heightened fear, depression, and, in extreme cases, suicidal thoughts.

The research, involving 1,177 participants, is one of the most extensive surveys addressing scams targeting the elderly.

Approximately 20% reported weekly fraud attempts, with 40% experiencing illicit approaches monthly, primarily through telephonic methods. Re-engage, dedicated to combating loneliness among those aged 75 and above, calls for immediate action in response to this alarming trend.

The study underscores that 50% of surveyed older individuals do not use the Internet and 70% refrain from online banking due to concerns about potential hacking.

Protective Measures Against ATM Fraudsters

Understanding how skimmers and shimmers operate is crucial for safeguarding your data and finances against these threats.

Skimmers are deceptive card readers installed over legitimate ones, while shimmers are paper-thin devices inserted into ATMs to steal chip data undetectably.

According to a Fox News article, spotting a skimmer involves examining the card slot's color, looking for bulky, differently colored card readers, checking for dried glue or adhesive, and being cautious of hidden cameras or false number pads near the card reader.

On the other hand, averting shimmers is more challenging, for they are hard to detect from the outside of an ATM, but there are still several straightforward methods to avoid fraudsters.

Protecting against shimmers includes preferring bank ATMs, using contactless payments, and activating bank alerts for prompt identification of fraudulent charges.

Despite taking precautions, falling victim to skimmers and shimmers remains a possibility. It's essential to report any suspicious activity to your bank immediately and minimize non-bank public ATM usage.

By staying informed and adopting security measures, consumers can reduce the risk of falling prey to these fraudulent schemes, ensuring a safer financial experience for themselves and their communities.