FRB Federal Credit Union Security Brief

ATM card skimmers and hidden cameras

The FRB Federal Credit Union is committed to minimizing the potential for unauthorized ATM and Visa transactions on member share accounts. The FRB Credit Union employs security measures to protect our members’ cards by quickly identifying potential card fraud. As a result of our security procedures, we regularly receive notices of suspicious transactions and lists of potentially compromised cards. A skimmer is one of the methods used by thieves to capture your card data.

Skimmers are temporarily mounted on ATMs in front of the standard card reader. A skimmer will grab the magnetic information from your card, storing it in the device's memory. Usually, these items are placed on ATMs for just a few hours at a time before being retrieved by the thief.

A skimmer will read all of the account information stored electronically on the magnetic stripe of your ATM or debit card. If a camera has also been placed on the ATM, the camera will record your personal identification number (PIN) as you enter it on the keypad.

Some skimming devices don't interfere with the normal operation of the ATM. The skimmer is placed over the card reader but doesn't block off the reader, and you will receive money when making a withdrawal. Other skimmers interfere with the ATM operation--the card is inserted or swiped, but it's not the ATM's card reader, so the ATM isn't actually being used. The ATM may have instructions and seem to be innovative, but ultimately it will report a malfunction and no money will be dispensed.

Skimming doesn’t just happen at ATMs; it can also occur at cash registers. For example, when paying your restaurant bill with a credit card, a waiter/thief might--when the card is out of sight--pass the card through a small handheld skimmer and store the data for future use. Thus, it is important to check your account on NetTeller or Audio Teller to make sure there are no unauthorized purchases.

When you use an ATM, be alert and look for suspicious items. If an ATM seems to be malfunctioning, be cautious if someone offers to help you. Your “stuck” card may be skimmed by your helper! If something looks out of place, don't use the ATM, and inform the machine owner of the situation. One person noticed a gap behind the metal faceplate of an ATM. A closer look revealed double-sided tape was all that kept the faceplate in place. Thinking it looked strange, the person pulled at the faceplate. It came right off, revealing an ATM skimming device.

Example 1

Example 2

This is a nationwide problem, and the U.S. Secret Service is involved in ATM skimming investigations. Secret Service agents are looking into a number of ways to combat skimming, including altering the design of ATMs and modifying the magnetic stripe technology.

Following are some tips to help you avoid becoming a skimming victim.

• Call the credit union (800-554-8969) immediately if you believe there is an actual or a potential problem with your card. Someone will be available 24 hours a day, 7 days a week to help you.
• Keep your PIN safe. Don't give it to anyone.
• Watch out for people who try to "help" you at an ATM.
• Look at the ATM before using it. If it doesn't look right, don't use it.
• If an ATM has any unusual signage, don't use it. No financial institution would post a sign saying, "Swipe your ATM card here before inserting it in the card reader."
• If your card is not returned after the transaction has been completed--or after you press Cancel--immediately contact the credit union.
• Check your statements to be sure there are no unusual withdrawals. Better yet, use NetTeller or Audio Teller to regularly check your accounts.

Photos from an University of Texas article on ATM scams.