How Credit Card Skimmers Steal Your Information (And How to Protect Yourself)
My Experience with Credit Card Fraud
My credit card information has been stolen multiple times. In fact, for three straight years, I had to get a new card because mine was compromised. Thankfully, I was able to report these incidents to my provider without much trouble. But for many people, credit card fraud can be devastating if they don’t know what to do.
What Is Credit Card Fraud?
Credit card fraud is the unauthorized use of a credit card or credit card information to make purchases or withdraw funds without the cardholder’s consent. This type of financial fraud can involve stolen physical cards, hacked account details, or fraudulent transactions.
Common Types of Credit Card Fraud
Card Theft: Physically stealing a credit card and using it for purchases.
Card-Not-Present (CNP) Fraud: Using stolen card details for online or phone transactions.
Skimming: Capturing card information through hidden devices at ATMs or gas pumps.
Phishing Scams: Tricking victims into revealing their card details via fake emails, texts, or calls.
Application Fraud: Using stolen personal information to apply for a new credit card in someone else’s name.
What Is Credit Card Skimming?
I want to focus specifically on skimming. It’s fascinating (and alarming) how scammers use technology and camouflage to steal people’s credit card information. I believe my card was skimmed multiple times before I truly understood how the process worked.
How Credit Card Skimming Works
The Role of the Magnetic Stripe
That little black strip on the back of your credit card is called the magnetic stripe, or magstripe. It stores and transmits data that allows transactions to be processed.
How a Credit Card Magstripe Works:
The magstripe contains tracks that store information like the cardholder’s name, account number, expiration date, and a security code.
When you swipe your card, the magnetic field interacts with the card reader.
The reader detects changes in the magnetic field, converting them into electrical signals.
The payment terminal sends the card data to the issuer’s network for authentication.
If the details match, the transaction is approved.
Why Skimming Is Popular in the United States
Scammers have figured out how to steal data from your card’s magstripe using skimmers. Since magstripes are being phased out in many parts of the world (especially Europe), fraudsters are moving to places where magstripes are still commonly used. That includes the United States in 2025.
How Skimmers Are Installed
The Tools of the Trade
Thanks to the internet, scammers can easily buy ATM parts, gas pump components, pinhole cameras, and skimming chips online. They modify these real parts to blend in perfectly with legitimate card readers.
Gas Pump Skimmers
At gas pumps, scammers use pinhole cameras to capture your PIN if they’re not using an overlay for the keypad. These tiny cameras can be hidden inside the machine or placed in a small, painted box that looks like part of the pump.
Point-of-Sale Skimmers
Some skimmers are modified to look just like the card readers at grocery stores. I’ve even heard of scammers placing skimming devices over self-checkout machines at Walmart—stealing thousands of card numbers from unsuspecting shoppers.
How Skimmers Work
Once installed, these skimmers store stolen card data on small motherboards. Scammers must retrieve the device to extract the data, recharge it, and place it back for continued use. Since skimmers sit in front of real parts, your card will still swipe and the transaction will go through—but your data is stolen in the process.
How to Protect Yourself from Skimmers
1. Use Tap-to-Pay or Mobile Payments
The best way to avoid skimmers? Stop swiping your card.
Tap to pay whenever possible, as this method bypasses the magstripe entirely.
Use ApplePay or Google Pay—these are encrypted, meaning not even the store knows your real card number.
2. Inspect the Card Reader
If you can't use tap to pay or ApplePay and swiping your card is your only choice:
Pull on the card reader before inserting your card. Fake skimmers are often attached with double-sided tape and can come loose.
Check for loose parts—real machines are securely installed.
3. Watch for Pinhole Cameras
Some skimmers need a pinhole camera to capture the PIN of your card. Be sure to look for them.
Look for small, unusual boxes near the keypad.
Cover your hand while entering your PIN to block hidden cameras.
4. Be Cautious at High-Traffic Locations
Scammers often target gas stations, ATMs, and self-checkouts in big stores. If you can, use an indoor ATM or pay inside at the register instead of at the pump.
5. Monitor Your Transactions
We need to be vigilant and check our card transactions frequently. This way we can spot unusual activity on our accounts and report it.
Set up fraud alerts with your bank.
Regularly check your statements for unauthorized transactions.
Final Thoughts on How to Avoid Card Skimming
Credit card skimmers are more advanced than ever, but now you know how they work and, more importantly, how to protect yourself. The key takeaway? Tap to pay whenever possible. Use Apple Pay or Google Pay for the most secure transactions. If you have to swipe, inspect the machine, pull on the card reader, and trust your instincts. Scammers are always adapting, but so are we. Stay informed, stay aware, and don’t make yourself an easy target.
