ATM skimming, where criminals use concealed digital devices to steal credit and debit card information, is a serious threat that can lead to major financial losses for businesses. The FBI reports 
that ATM and point-of-sale (POS) skimming schemes generate over $1 billion annually for criminals. If your business operates or offers access to these machines, it’s essential to assess your risk and implement measures to prevent skimming on your premises.
How Skimming Occurs
Skimming is a popular crime because it’s relatively easy to carry out. Criminals install a skimming device—often a plastic overlay—on ATMs or POS readers to capture card data and PINs. Sometimes, hidden cameras are used to record PIN entries, or even dummy keypads are employed. With the stolen information, fraudsters create counterfeit cards, or “clones,” and use them to withdraw funds from the victims’ accounts.
Many victims are unaware of the theft until they review their bank statements. While consumers are generally protected from significant personal losses through liability laws, businesses can face serious consequences. If an ATM or POS reader on your premises is compromised, you may be exposed to customer lawsuits and lose valuable business.
Safeguarding Your Business
To reduce the risk of skimming, place ATMs and POS readers in well-lit areas covered by security cameras. Ensure that cameras capture both the equipment and surrounding space clearly. Regularly reviewing surveillance footage can help detect any interference with your machines or cameras. Additional preventive steps include:
- Installing Security Devices: Request tamper-evident seals and keypad covers (which shield customers’ PIN entries) from your equipment vendor if these features aren’t already in place.
- Educating Customers: Post notices near ATMs warning about skimming. Stickers on or around ATMs and POS readers should advise users to shield the keypad while entering their PINs.
- Routine Inspections: Ensure employees regularly inspect ATMs and POS readers. To make inspections easier, document the dimensions of the equipment so any changes (like the addition of a skimming device) are easily noticeable.
- Taking Immediate Action: If you suspect tampering or skimming, promptly shut down the affected ATM or POS reader. Report your findings to law enforcement and your equipment vendor. Cutting power to the machine may stop skimming devices from transmitting stolen card data, so consider unplugging the machine until it can be inspected.
Maintaining Vigilance
Preventing ATM and POS skimming requires continuous attention and a multi-faceted approach. Consider subscribing to newsletters from your bank or law enforcement agencies for updates on the latest skimming tactics and tools. Contact us for assistance in assessing your business’s exposure to fraud and theft risks.
