Protect Your Credit Cards from Skimmers and Shimmers

One moment, you’re filling up on gas or withdrawing cash from an ATM. You go about your day, unaware that criminals have stolen your card details and are racking up charges. While payment technologies are improving, scammers constantly evolve their tactics to bypass security measures. That’s why staying informed about the latest credit card scams is essential.

At Peralta Associates and Defense, we’re committed to keeping you a step ahead of fraudsters. By taking simple precautions, you can protect your finances and avoid falling victim to these schemes.

A credit card skimmer is a device criminals install on legitimate point-of-sale terminals or ATMs to steal card data. These skimmers covertly record information from a card’s magnetic stripe, allowing fraudsters to clone cards and make unauthorized transactions.

With the rise of EMV chip cards, criminals have adapted their tactics. Many now focus on shimming—a method that targets chip-enabled cards instead of magnetic stripes. These shimmers are installed inside card readers, making them even harder to detect.

Modern skimmers are more advanced than ever, often equipped with Bluetooth or wireless technology, allowing criminals to retrieve stolen data remotely. Some even capture PINs, making it even easier for them to drain accounts. Gas station pumps, ATMs, and older payment terminals remain top targets for skimming attacks.

If criminals skim or shim your card, they can:

• Clone your card to make unauthorized purchases.
• Withdraw money from your account (if it’s a debit card).
• Commit identity theft using stolen financial information.
• Gain access to other accounts if they obtain additional personal details through phishing or data breaches.

Criminals use a variety of skimming and shimming devices, including:

• Overlay Skimmers: Fit over the existing card slot to capture card details.
• Insert Skimmers: Hidden inside the card reader’s slot.
• Insert Shimmers: Specifically designed to steal EMV chip card data.
• Wiretap Skimmers: Intercept data transmissions within the payment terminal.
• Bluetooth Skimmers: Transmit stolen card details wirelessly.
• Miniaturized Skimmers: Concealed within the reader, making detection extremely difficult.

Avoid Suspicious Payment Terminals – Try to use well-lit, high-traffic ATMs and gas stations. Criminals often target isolated locations with minimal security oversight.

Inspect the Card Reader – Before inserting your card, check for loose or unusual parts. If something looks misaligned, jiggly, or protruding, it might be compromised.

Cover the Keypad – Always shield the keypad when entering your PIN to prevent hidden cameras from capturing your information.

Use Chip-Enabled Cards – Whenever possible, use your EMV chip instead of swiping your card. While shimming exists, chip transactions are still far more secure than magnetic stripe transactions.

Opt for Contactless Payments – Tapping your card or using a mobile wallet significantly reduces the risk of skimming and shimming.

Monitor Your Accounts – Regularly check your statements and report unauthorized transactions immediately. Setting up real-time alerts from your bank or credit card provider can help you catch fraud quickly.

Use Digital Wallets – Apple Pay, Google Pay, and other mobile wallets offer added security through tokenization, which makes transactions more difficult to exploit.

Choose Credit Over Debit – If your card gets skimmed, credit card fraud is easier to dispute than stolen funds from a debit card. Credit card companies offer better fraud protection than most banks.

Yes! Chip credit cards use encrypted microchips to store and transmit data, making them far more secure than magnetic stripe cards. Unlike the static data stored on magnetic stripes, each EMV chip transaction generates a unique, one-time-use code, preventing criminals from cloning the card.

While shimming exists, chip card fraud is significantly lower than traditional skimming. Additional features like tokenization and dynamic authentication make chip transactions the best choice for security.

Tap-to-pay (or contactless payment) uses near-field communication (NFC) to transmit encrypted payment data. This reduces fraud risk by preventing direct interaction with the card reader.

Some worry about NFC skimming, but modern security features like tokenization, transaction limits, and authentication requirements make tap-to-pay one of the safest payment methods available.

If you suspect your card has been skimmed or shimmed, take action immediately:

1. Call your bank or credit card provider – Report fraudulent transactions and request a card freeze or replacement.
2. Monitor your accounts – Check for any additional suspicious transactions and set up fraud alerts.
3. Freeze your credit – This prevents identity thieves from opening accounts in your name.
4. Strengthen your online security – Use unique, strong passwords and enable multifactor authentication (MFA) on all financial accounts.
5. Report potential identity theft – If your data is compromised, notify credit bureaus and relevant authorities for additional protection.

The best defense against skimmers and shimmers is constant vigilance. Always monitor your financial accounts, inspect card readers before use, and take advantage of secure payment technologies like contactless payments and digital wallets.

At Peralta Associates and Defense, we believe that knowledge is power when it comes to protecting your financial security. Stay alert, stay informed, and take proactive steps to safeguard your cards from fraud. For more information, you can contact us at (888) 719-5378 or via Email to info@peraltadefense.com.