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With the rise of electronic transactions, scammers have developed devices to steal your credit card information digitally. Skimming and shimming credit cards are two notorious methods used to capture your credit card details without your knowledge.

 

Skimming occurs when devices attached to ATMs or payment terminals capture card data from magnetic stripes or by storing your PIN. Shimming targets the microchips in newer cards, a technique that emerged after chip cards were introduced. 

 

With chip-enabled cards being used more commonly, instances of shimming have increased. 

 

Due to these scamming techniques, it is crucial to remain vigilant and stay one step ahead of the fraudsters. 

 

Understand how these methods work and learn how to identify skimming and shimming devices to safeguard your finances.

Understanding What Happens to Your Card After Scammers Skim or Shim It

Falling victim to credit card skimming or shimming can have serious consequences, as your stolen information may be misused in multiple ways. Once scammers gain access to your card details, they can exploit them for financial gain in the following ways:

  • Unauthorised Purchases: Scammers can use your stolen information to make fraudulent online transactions without your consent

  • Identity Theft: Fraudsters can exploit your personal details to take loans or create new liabilities in your name

  • Creation of Fake Cards: Stolen data can be used to produce counterfeit credit cards (cloned cards) or sold to others for further fraudulent activities

Difference Between Skimming vs Shimming a Credit Card

Skimming and shimming credit card frauds are closely related. Shimming is a newer technique that criminals use as an evolution of skimming. Here are the key differences between the two:

Aspects

Skimming

Shimming

Definition

Involves stealing information from a card's magnetic strip using a hidden device attached to payment terminals or ATMs

Entails extracting data from the card’s microchip through a small device implanted inside the card slot of a Point-of-Sale (PoS) device or ATM

Targeted places for Scamming

Gas stations, restaurants, ATMs, and other places where there are card readers to swipe your card 

Gas stations, restaurants, and other similar places that require payment terminals or PoS devices 

Type of Device 

Conducted via the use of bulky machines that may be easy to spot

Conducted via the use of almost undetectable, slim machines

EVM Impact 

Reduces skimming by eliminating chances of fraud via magnetic stripes by introducing chip security 

Shimming specifically targets EMV chip cards, bypassing their security features

How to Spot a Credit Card Skimmer or Shimmer

Detecting these devices can be a step to safeguarding your financial information and preventing fraud. Skimmers and shimmers are often discreetly attached to ATMs or payment terminals, making them hard to notice. 

 

You can protect yourself from falling prey to credit card skimming or shimming by checking these signs:

  • Misaligned or Bulky Card Reader

A card reader that appears oddly shaped or tilted may be tampered with. Choose an alternative payment method if the machine’s shape or angle seems suspicious.

  • Inspect the Machine

Wiggling the card can help identify any loosely attached components that could be part of a skimmer.

  • Unusual Appearance

In retail stores, compare the PoS device with others. A device that looks significantly different could be a skimmer.

What to Do if Your Credit Card Has Been Skimmed/Shimmed

If you think you are a victim of credit card skimming or shimming, it is important to act quickly to minimise any potential damage. These types of frauds can lead to significant financial loss if not addressed promptly. 

 

Here is what you need to do immediately:

  • Check credit card statements frequently to detect any suspicious transactions

  • Reach out to your credit card issuer and inform the customer care team right away

  • Go to the credit card website or app to report and block your credit card

Frequently Asked Questions

Can a card skimmer get your PIN?

Yes, card skimmers can capture your PIN if they place a keypad overlay or set up a hidden camera near the real keypad. By obtaining your PIN, they can clone your credit card and make unauthorised purchases.

Can chip cards be skimmed?

Yes, chip cards can be skimmed through a process called shimming. A small device, known as a shim, is inserted into ATMs or PoS terminals to capture chip-enabled data.

Can a Tap-to-Pay card be skimmed?

No, contactless cards are protected by encryption and verification during the transaction process. Normal skimming devices cannot intercept or steal information from contactless payments.

What is card shimming?

Shimming is an advanced form of skimming. Fraudsters insert a tiny device, called a shim, into the card reader to copy the chip-card information. While the data cannot be used to clone a chip, it can be used to create a fake magnetic stripe card for online purchases.

How do you prevent skimming and shimming?

To spot or avoid credit card skimming or shimming, you can use the following techniques:

  • Opt for pay with UPI via your smartphone whenever you have suspicions about the reader

  • Check your credit card statement to notice any unauthorised purchases

  • Avoid using stand-alone ATMs

  • Cover the keypad with your hand while you enter your credit card PIN

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