Special Report: ATM Skimming

Financial experts and Government agents say that ATM skimming is on the rise. The gear being used to swipe your info is more sophisticated than ever, and the latest statistics are shocking.

Lorie Briggs uses her debit card for everything from groceries to gas.

“My husband went to get gas one day, and the card was denied,” Lorie said. “We knew we had money, so we were quite surprised.

After a quick call to the bank, Lorie learned that more than $400 had been stolen.

“Our account was at zero,” Lorie said. “We didn’t know how we were going to pay the bills!”

Lorie’s bank now believes she was a victim of ATM skimming.
Skimming is the unauthorized capture of your debit or credit card’s magnetic strip data. It can happen during routine ATM transactions.
False card readers and hidden wireless cameras are used by thieves to swipe bank account info and pin numbers.

“They’ll download that information, and they’ll have it,” Kurt Helwig of the Electronic Funds Transfer Association said. “And with that information, they’ll go create a bogus card.”

Or, they’ll see the information online.

Helwig said that theft from ATM skimming now tops one billion dollars annually.

And according to the US Secret Service, the number of attacks is on the rise.

One reason why, Helwig said, is that today’s skimming devices are increasingly sophisticated.

"If it's a well done crime, it's something that looks just like that which you would typically use when you swipe your card." Helwig said.

Some are so discreet that they can even be attached to the outside of an ATM vestibule – or even a gasoline pump.

That’s where Lorie’s bank believes she was skimmed.

“We didn’t notice anything in particular that was suspicious,” Lorie said.

Helwig says consumers are not held liable for fraudulent losses, but it’s still important to play detective.

Start by performing an ATM inspection. John Pearce with ADT Security Services says to check the card reader to ensure that it’s secure.
"Look for anything unusual, anything that's out of the ordinary.

Tell tale signs, such as tape sticking out of a portion of the ATM or out of the PIN pad, or tape residue or glue residue where something has been applied," Pearce said.

Then, look around the ATM. Scan the ceiling and any brochure racks.
“The wireless camera is likely to be installed immediately above the ATM, within the ATM, or in the ceiling,” Pearce said.

To protect your pin number, Pearce recommends cupping your hand over the keypad.

"This not only protects you against shoulder surfers who might be behind you, but also, obviously, it protects you against what the skimming bad guys capture on their video cameras." Pearce said.

But if you are skimmed, file a fraud report with your bank immediately.

That’s what Lorie did. Her money was returned the next day.

"We check our bank statement all the time now because we know that someone could skim us again, and we don't want that to happen," Lorie said.

The Electronic Funds Transfer Association started a task force to help combat this problem, and is working with the U.S. Secret Service.

ADT says that many financial institutions are beginning to buy anti-skimming devices.