What ATM skimming is and how criminals use it

ATM skimming is when a criminal installs a hidden device on an ATM to steal your card information and PIN while you withdraw cash. The skimmer reads your card data as it passes through the machine. A hidden camera or fake keypad overlay captures your PIN. Later, the criminal uses that information to make fraudulent charges or drain your account.

Skimmers are small enough to fit in a pocket and can be attached in under a minute. They look like legitimate ATM parts — a card reader slot, a keypad cover, or a small box on the front of the machine. Many are professionally made and nearly impossible to spot without knowing what to look for. The criminal returns later to remove the device and sell the stolen card data, often to other criminals who use it for online purchases or cash withdrawals.

Lower-income Americans are often targeted because criminals assume they may not monitor accounts closely or may not have fraud protection services. If your account is drained, you may not have emergency savings to fall back on, and the time it takes to recover stolen funds can mean missed rent or utility payments.

Key Takeaways

  • Skimmers are small devices criminals attach to ATMs to steal card data and PINs; they look like normal ATM parts but can be spotted by tugging on the card slot and checking for loose pieces.
  • Always cover the keypad with your hand when entering your PIN, and use ATMs in well-lit, high-traffic locations like bank lobbies rather than isolated gas stations or convenience stores.
  • Check your bank statement weekly or set up text alerts for every transaction so you catch fraud within days rather than weeks.
  • If you spot a suspicious ATM, do not use it; report it to the bank immediately and use a different machine.
  • If your card is compromised, call your bank right away to freeze the account and dispute fraudulent charges; federal law limits your liability if you report it quickly.

How to spot a skimmer before you use the ATM

Before you insert your card, inspect the ATM carefully. Tug gently on the card slot, the keypad, and any other protruding parts. Legitimate ATM components are bolted down and will not move. If something feels loose, wiggles, or comes off in your hand, do not use that machine — a skimmer is likely attached underneath.

Look for gaps or misalignment around the card slot. A skimmer sits on top of the real slot, so there may be a visible seam or the overlay may not line up perfectly with the rest of the machine. Check the keypad for a raised cover or a slightly different texture or color. Criminals often use plastic overlays that do not match the original keypad exactly.

Inspect the area around the camera lens at the top of the ATM. A hidden camera pointed at the keypad will be tiny — the size of a pen tip — but may be visible if you look closely. It might be tucked into the machine's trim, a brochure holder, or a small hole drilled into the plastic. If you see anything that looks out of place or newly installed, move to a different ATM.

Use ATMs in secure locations. Bank lobbies, especially those open 24 hours with security cameras and staff nearby, are safer than isolated machines at gas stations, convenience stores, or laundromats. Criminals prefer machines with less foot traffic and no witnesses. If you have a choice, use an ATM inside your bank's building during business hours.

Protecting your PIN and card information at the ATM

Always cover the keypad with your other hand while you type your PIN. This blocks any camera that might be pointed at the keys. Do this even if you are alone — it is a habit that protects you every time. Move your hand away only after you have finished entering your PIN and pressed Enter.

Do not let anyone stand close behind you or to the side while you withdraw money. If someone approaches, step away from the machine and wait for them to leave. Criminals sometimes work in pairs: one operates the skimmer while another watches over your shoulder to record your PIN.

If the ATM asks you to re-enter your PIN or says there is an error, stop immediately. Legitimate ATMs rarely ask you to enter your PIN twice. If this happens, cancel the transaction, remove your card, and use a different machine. Report the incident to your bank.

Do not use an ATM if it looks damaged, has tape on it, or has been recently repaired. Criminals sometimes damage machines to make room for skimmers or to make the fake parts blend in. If something looks off, trust your instinct and find another ATM.

Monitoring your account to catch fraud quickly

Check your bank statement at least once a week. Many people wait until the end of the month, but by then fraudulent charges may have multiplied. If you catch unauthorized transactions within a few days, your bank can often reverse them faster and your liability is lower.

Set up text or email alerts for every transaction on your account. Most banks offer this for free. You will get a notification each time your card is used, so you will know immediately if someone else is spending your money. If you see a charge you did not make, call your bank right away.

Keep your receipts and compare them to your statement. Write down the date, time, location, and amount of each withdrawal you make. If a receipt shows a different amount than what appears in your account, contact your bank immediately.

Use online banking to check your balance frequently. You do not have to wait for a paper statement. Log in to your bank's website or app several times a week to see recent transactions. The sooner you spot fraud, the sooner you can stop it.

What to do if your card or account is compromised

Call your bank immediately if you notice unauthorized charges or suspect your card has been skimmed. Do not wait until the next business day. Many banks have 24-hour fraud lines. Tell them which transactions are not yours and ask them to freeze your account or cancel your card right away.

Federal law limits your liability for fraudulent charges. If you report the fraud within two business days of discovering it, you are responsible for no more than $50 of unauthorized charges. If you wait longer than two business days but report it within 60 days, you may be liable for up to $500. If you do not report it within 60 days, you could lose all the money in your account.

Ask your bank to issue a new card with a new number. The old card number is now in the criminal's hands and cannot be trusted, even if the fraudulent charges are reversed. A new card number protects you from future unauthorized use.

Request a written confirmation of your fraud report from the bank. Keep this document for your records. If disputes arise later, you will have proof that you reported the fraud and when you reported it.

File a report with the Federal Trade Commission at IdentityTheft.gov. This creates an official record and may help you if the fraud spreads to other accounts or if a criminal uses your information for identity theft. You can also file a police report, though many police departments handle ATM fraud at the federal level.

Safer alternatives to ATMs for withdrawing cash

Withdraw cash inside your bank during business hours whenever possible. You can speak to a teller, and there are security cameras and staff present. This is the safest way to access your money.

Use ATMs inside bank lobbies rather than outdoor machines. Even if the lobby is not staffed 24 hours, the machine is still in a secure building with controlled access and surveillance.

Ask for cash back when you make a purchase at a grocery store or pharmacy. Many stores offer this service for free. You avoid the ATM entirely and get the cash you need in a well-lit, high-traffic location.

If you must use an outdoor ATM, go during daylight hours and bring someone with you. A companion can watch for suspicious activity and help you stay alert.

Frequently Asked Questions

Can a skimmer steal my money even if I have a chip card?

Yes. Chip cards are more secure for in-person purchases at stores, but ATM skimmers still work because they capture the magnetic stripe data on the back of your card. The skimmer reads this data the same way an older card reader would. Your PIN is captured separately by a hidden camera or keypad overlay, so the chip does not protect you at the ATM.

What should I do if I find a skimmer on an ATM?

Do not remove it yourself. Call your bank or the ATM operator immediately and tell them the location and what you observed. Take a photo if you can do so safely, but do not touch the device. The bank will send someone to remove it and inspect the machine for damage. Report it to local police as well.

If I use my debit card at an ATM, am I protected the same way as with a credit card?

No. Debit card fraud protection is weaker than credit card protection. With a debit card, you have 60 days to report fraud, but your liability can be higher if you delay. With a credit card, you are typically liable for no more than $50 regardless of when you report it. For this reason, using a credit card at ATMs (if you have one) is safer than using a debit card.

How often do criminals update skimmers to avoid detection?

Skimmer technology changes constantly. Criminals test new designs and materials to make devices harder to spot. This is why your best defense is not relying on your ability to spot every skimmer, but rather monitoring your account closely and using secure ATM locations. Even if a skimmer is installed, catching the fraud within days limits the damage.

Can I get my money back if I withdraw cash and it turns out the ATM was skimmed?

If you withdrew cash yourself, the bank cannot reverse that transaction — you authorized it. However, if the skimmer was used to make unauthorized charges or withdrawals after you left, those are fraudulent and can be disputed. Report any unauthorized activity to your bank immediately.