What Is Credit Card Shimming?

Credit card shimming is a sophisticated technique used by identity thieves to steal credit card data. This is done by placing a small, undetectable device on a payment terminal that scans your card’s microchip and stores the information. The stolen data can then be used to commit fraud.

Shimming is a common threat, especially at ATMs and gas stations. However, there are steps you can take to protect yourself from becoming a victim.

How Does Credit Card Shimming Work?

Shimming involves the theft of data from a card’s microchip during a transaction at an ATM or point-of-sale terminal. Both debit and credit cards are susceptible to shimming. A shimming device is installed inside the card reader slot of an ATM or terminal, making it nearly impossible to detect. Once the device captures the data, the thief retrieves the device to access the stolen information.

Where Are Shimming Devices Found?

Shimming devices are commonly found at:

• Gas pumps
• ATMs
• Vending machines
• Parking meters

Shimming vs. Skimming

Shimming is more sophisticated than skimming, another tactic used by thieves to steal credit card information. Skimming involves devices that grab card data from magnetic stripes or store card PINs. Shimming, on the other hand, targets the data on a card’s microchip. Despite the differences, both methods result in the theft of money from your credit card or bank account.

How to Protect Yourself from Shimming

Here are five proactive steps you can take to help protect yourself from shimming:

1. Use contactless payments: Take advantage of contactless payment methods like Apple Pay, Google Pay, and Samsung Pay.
2. Pay inside: At a gas station, pay for your fill-up inside the station rather than at the pump.
3. Turn to bank-owned ATMs: Try to use a bank-owned ATM rather than a non-bank ATM. Non-bank ATMs may not be as secure.
4. Look for a safer ATM: Conduct your business at ATMs in well-lit, public places.
5. Watch the card slot: Pay attention to how easily your card fits into a card reader slot. If it’s difficult to slide your card in, be suspicious.

What to Do if You’re a Victim of Credit Card Shimming

If you suspect that your credit or debit card has been shimmed, take the following steps immediately:

1. Contact the card issuer: Reach out to your card issuer or bank as soon as possible.
2. Set up fraud alerts: Request a free fraud alert through Experian, Equifax, or TransUnion.
3. Monitor your accounts: Regularly review your credit card and bank statements for any suspicious transactions.
4. File a report with the FTC: Visit the FTC’s IdentityTheft.gov website to submit a report about suspected shimming.

The Bottom Line

Scammers are always looking for ways to make a quick buck, and credit card shimming is one of their favorite methods. By installing a shimming device at a gas pump or ATM, a thief can steal data from a card’s microchip and create a fake card. If you suspect you’ve been a victim of shimming, take action quickly to minimize further damage.

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