Disturbing news about the increased prevalence of skimming at ATM locations (from NY Times):

Skimming involves stealing debit card numbers by putting an illegal card reading device on an A.T.M. Criminals use the devices in tandem with hidden cameras that record personal identification numbers entered onto the keypad. They then make duplicate cards using the information and drain cash from bank accounts.

FICO Card Alert Service, which monitors activity at A.T.M.s for bank clients, is reporting a sixfold increase in the number of machines in the United States compromised by criminals in 2015, compared with 2014. The service is an arm of analytic software company FICO, best known for providing consumer credit scores.

So, why should you worry about convenience store ATMs?

While the episode shows that banks are not immune, nonbank A.T.M.s, meaning those in locations like convenience stores, are increasingly the targets, said T. J. Horan, vice president for fraud solutions at FICO. In 2015, he said, 60 percent of the compromises were at nonbank A.T.M.s, up from about 39 percent in 2014.

A six-fold increase, WOW! How to protect onself (from FICO Card Alert Service):

For cardholders, we suggest increased vigilance. Here are some tips:

• If an ATM looks odd, or your card doesn’t enter the machine smoothly, consider going somewhere else for your cash.
• Contact your card issuer if you have completed a transaction and suspect that your card or PIN may have been compromised.
• Check your card transactions frequently, using online banking and your monthly statement.
• Ask your card provider if they offer account alert technology that will deliver SMS text communications or emails to you in the event that fraudulent activity is suspected on your payment card.
• Update your address and cell phone information for every card you have, so that you can be reached if there is ever a critical situation that requires your immediate attention.

In many classrooms, students may know someone who has been hit by this fraud.

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NGPF Blog first spotted skimming in November of 2014 in this post.

Check out the NGPF Lesson on Scams, Frauds and Identity Theft

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.