Card skimming: What you need to know and how to stay safe
Introduction
While traveling, it's common to need cash for various purchases, as many places still prefer cash transactions over card payments. If you haven't exchanged currency in advance, you might need to withdraw cash using your credit or debit card from an ATM. This practice, though common, poses certain risks - particularly the risk of card skimming.
What is card skimming?
Card skimming is a form of fraud where thieves use a device to capture the information stored on your card’s magnetic stripe. These skimming devices are often secretly installed on ATMs and other point-of-sale terminals, capturing your card details without your knowledge. Fraudsters can then use this information to make unauthorized transactions.
How does card skimming happen?
When you use your bank cards at various locations, hidden card readers and cameras or fake keypads can be used to read and store your card's information as you swipe it. Another common method is phishing, where travellers are tricked into providing their card details through fake emails or websites that mimic legitimate ones.
Are contactless cards vulnerable?
While contactless cards are somewhat less susceptible to traditional skimming techniques, they are not entirely immune. A device called a near field communication (NFC) reader can wirelessly read and transmit information from a contactless card when it is within range.
How to protecting your contactless card
Use an RFID-blocking wallet: This helps prevent unauthorized access to your card’s information while it’s in the wallet.
Set transaction limits: Configure your card so that larger payments require a PIN.
Regularly monitor your accounts: Frequently review your bank statements to quickly detect any suspicious transactions.
Tips to prevent card skimming
Here are several measures you can take to reduce the risk of card skimming:
Research before you travel: Look up reputable ATMs in your destination country. Online reviews can guide you to safer options and inform you of any associated fees.
Cover the keypad: When entering your PIN, always shield the keypad with your hand to prevent hidden cameras from capturing your input.
Monitor your bank accounts: Regularly check your statements to spot any irregular transactions quickly.
Use secure ATMs: Choose ATMs located in well-lit, high-traffic areas and be cautious of those that are not affiliated with a recognized bank.
Inspect the machine: Before using an ATM or card terminal, examine it for any signs of tampering, such as loose parts or anything that looks out of place.
What to do if your card is skimmed
If you suspect that your card has been skimmed, it is crucial to act swiftly:
Immediately block your card: Contact your bank or card issuer to report the fraud and prevent further unauthorised transactions.
Review your recent transactions: Carefully check your recent transactions and report any that you do not recognise.
Report to local authorities: Depending on where you are, notify local authorities or, upon returning home, the appropriate national cyber security centre.
Most banks or card issuers will guide you through the process of recovering lost funds and may issue a new or temporary card. Additionally, check your travel insurance policy to understand what coverage you have for such incidents. You may need to show that you took reasonable precautions to avoid scams, such as following the preventative steps outlined in this guide.
