Protecting yourself from ATM and POS terminal skimming is more crucial now than ever. Criminals have found increasingly sophisticated ways to steal personal and financial information by installing covert devices at ATMs and point-of-sale terminals. These skimming devices capture sensitive card data that can later be used to create counterfeit cards or make unauthorized purchases. According to the FBI, skimming costs financial institutions and consumers more than $1 billion each year, and according to Coin Law, global ATM fraud has surged by 18% in 2023, with losses estimated at $2.4 billion.
Skimming devices are often installed in high-traffic areas such as gas stations, grocery stores, and pharmacies, where criminals can blend in easily. Fraudsters insert hidden skimming devices deep into an ATM’s card reader slot to capture data from a card’s magnetic stripe or EMV chip, while tiny pinhole cameras—sometimes as small as the tip of a ballpoint pen—are strategically positioned to record PIN entries without detection. Similarly, at point-of-sale terminals, criminals attach plastic overlay shells that mimic the device’s original components, capturing card data and PINs. According to Coin Law, experts estimate that POS skimming alone resulted in over $600 million in losses globally in recent assessments.
The financial impact of these crimes is reflected not only in direct losses but also in the rapidly growing market for payment card skimming prevention. According to Einpresswire, market reports indicate that the payment card skimming market grew from $3.16 billion in 2023 to $3.56 billion in 2024, and it is projected to reach $5.71 billion by 2028 at a compound annual growth rate of 12.6%. Moreover, surveys reveal that more than 60% of U.S. credit card holders have encountered at least one suspicious transaction in the past year according to CNBC.
If you suspect that a skimming device has compromised your card, it is essential to contact your card issuer’s fraud department immediately and request a replacement card with a new PIN. Businesses should remove any suspected ATM or POS terminal from service without delay, notify their corporate security teams, and report the incident to local law enforcement. Additionally, individuals and organizations are encouraged to report suspicious activity to the Internet Crime Complaint Center at www.ic3.gov, where federal agencies collaborate to investigate and mitigate such fraudulent activities.