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Skimming: Taking your information with a swipe

By Kim Essex - bio | email

HUNTSVILLE, AL (WAFF) - Do you what skimming is? If you have a debit or ATM card, you'll want to pay attention to this report.

Skimming has been happening since the late 90's and has become more popular with the advent of smaller, more compact computers.

If Slide your ATM card into a skimmer, it will read all your account information stored electronically on the magnetic stripe.

It may even record your personal identification number or pin as you punch it into the keypad.

If that information gets hijacked, the next thing you know your checking account is wiped out.

It's called skimming and most people have never heard of it. 

"Oh! That's scary. I had no idea," said a woman.

"Really scary," added another woman. "And I'm not sure what you can do about it."

WAFF 48 News asked the managers at Redstone Federal Credit Union in Huntsville what can be done to protect your account.

They say you should be alert if anything on the ATM looks different.

"Maybe a piece where the ATMcard goes is a different color or a slight shade different or a different size, it just doesn't look like it belongs," said Jonathan Kirby, the securities manager at Redstone Federal Credit Union.

The skimming equipment may look exactly like the real thing, a grayish, fabricated metal container shaped to fit the ATM, but inside is a tiny laptop computer.

The ATM prompts look completely legitimate, so you wouldn't necessarily be alarmed.  

20 years ago ATM crimes may have consisted of someone robbing you at an ATM. Then it was shoulder surfing where the thief watched the victim punch in their pin number and made off with their money if they carelessly left their receipt behind.

Well skimming is the new generation of ATM theft.

ATM skimming devices come in two styles, the ones that interfere with the ATM operation and the ones that don't .

The ones that interfere are easier to detect because you don't get any money . You'll eventually see a message saying there's been a malfunction, and your money is all but gone.

The more common form of skimming is the most dangerous because all ATM functions appear normal, you even get your money when making a withdrawal.  

"Typically the transactions would go through. All screens show as they normally would and it's after the fact that it becomes very important that you pay extra attention to your statement and make us aware of any unauthorized activity is noticed," said Kirby.

Charles Powell has never heard of skimming, but he's pretty confident he could spot fake ATM equipment. He says if he walked up to an ATM and something was "off" he would not use it.

That's exactly what you should do along with alerting the bank so they can investigate.

Redstone Federal Credit Union managers say they have not been hit by skimmers, but have measures in place to prevent it.

Mark Wood is Redstone Federal Credit Union's manager of ATM services.  

"There are hardware applications as well as software that can be put into place that will confront that, notify us through network systems when this type of tampering my occurs," said Wood.

Inspectors physically check all ATMS monthly looking for proof of tampering or alteration, but Wood warns consumers must also be alert .  

"It's just a general encouragement to look for ATMs and other businesses and financial institutions that appear to take more stringent efforts to protect you," said Wood.

However, staying ahead of technologically savy thieves is challenging.

"As we come up with more ways to fight crime, they are right behind us trying to come up with new ways to perpetrate it," said Kirby. "And technology is becoming more and more affordable so it allows them to do more with less."

Skimming is not just at banks. It can happen at the cash register when you make a purchase or in a restaurant.

If you become a victim, call police immediately and file a report.  Also contact your bank or credit card issuer.

If it's reported right away, federal law caps your liability at 50 dollars, although most card companies go further and won't make you pay any of the unauthorized charges.

If notified quickly, your bank will return your money.

Then contact the 3 major credit bureaus, Experian, Equifax and TransUnion and request a security freeze which prevents new credit authorizations without your consent.  

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