How do skimmers skim? More than a thousand debit cards have been skimmed in recent months. Skimming is copying a card, which makes it possible to plunder someone’s account. There are two known ways in which skimmers skim. They work smartly and can make many victims in one day with this simple method of fraud. But how exactly does that work? How does a skimmer skim and what can you do to avoid becoming a victim?
What exactly is skimming?
Skimming involves copying the data from a debit card. This happens in such a way that no one notices. The ATM is processed without anyone noticing and from that moment on it is able to copy every card that is swiped through the device. A modified PIN device actually reads the magnetic strip on the PIN card and stores this data. The customer who completes the transaction via the ATM cannot possibly see that the card is being copied at that moment. To copy the card, a device is used that is placed in front of the slot of the ATM. The PIN code is copied by placing a small camera at the locations or using the old-fashioned ‘viewing technique’ over the shoulder. Now all the information is available to completely recreate the card so that the skimmers can withdraw from your bank account.
Skimming occurs not only in shops and at other points of sale at a cash register with a fixed ATM, but also via portable machines and in establishments where you have to give your card or credit card to a staff member for payment. Your PIN code will also be checked here.
Skimming is the new method of fraud. After the major fraud was discovered at the cinema chain in Amsterdam (Pathé), it was also announced that large-scale skimming had taken place in Nieuwegein at a do-it-yourself store. ATMs of Dutch banks themselves were also tampered with, so even at the bank, debit card payments no longer have to be safe these days.
How skimmers skim
Skimming happens in different ways. It is now possible to copy debit cards with the corresponding PIN code in several ways. The technology behind editing the ATMs is very complicated, but ultimately the editing itself is very simple. There are three known ways in which skimming is currently carried out. Two of these methods are done via the small (cash) ATM, which completes the transaction with the debit card. The third way is done at the large ATMs at banks, where money is withdrawn ‘from the wall’.
Way 1: Camera or viewing technology at the cash register
The ATM at the cash register, at the door or behind the counter is equipped with additional software in the device itself. For this it is necessary to open the ATM. The additional software makes an exact copy of the magnetic strip on the debit card and also records the time of the transaction. A small camera records the PIN code being entered and also records the time of recording. This way, the skimmers can add the correct PIN code to the correct passport copy using the times indicated on the camera and the software. If no camera is installed, you will be watching over your shoulder as you enter the PIN code without you noticing. By remembering this PIN code or writing it down with the correct time, the skimmers can subsequently add the correct code to the correct card.
Way 2: Keypad in the machine
This method is actually the more technical variant of method 1. This method also involves installing additional software in the device. However, this technique does not require a camera or viewing technology. The skimmers have placed a keypad on or under the regular keys of the ATM. A keypad is an ordinary keyboard, just like that of an ATM, only this keypad registers your pressing of the numbers. When you press the digits of your PIN code, they will press on or below the digits of the ATM on the keypad. So, using this combination technique, your card is copied and your PIN code is registered. Installing a keypad is also possible at large ATMs at banks, where you withdraw money.
Way 3: Attachment to the sofa
A false front or attachment is attached to the ATM. Your card therefore goes through this front before it ends up in the bank’s ATM. This faceplate contains a reader that records the data from the magnetic strip of your card. In addition, this technology also includes a camera or a keypad. The stored data can be sent wirelessly through the skimmer. This way he has everything he needs to plunder your bank account.
The smart chip
Banks do everything they can to protect their customers from this type of fraud. Yet banks themselves are also regularly victims, meaning that even using a debit card at the bank is no longer safe. Banks recommend checking everything carefully and also keeping an eye on everything with internet banking. Is the amount correct and is everything going as it should? The banks therefore request everyone to report anything strange when using any method of debit card or internet payment.
In some countries, banks have equipped all debit cards with a so-called ‘smart chip ‘. This smart chip cannot be copied. Unfortunately, this chip does not prevent all fraud, as the expiration date and card number can still be read. This information in combination with the correct PIN code is often sufficient for transactions involving internet purchases and sometimes even telephone purchases. The smart chip has not yet been put into use in the Netherlands.
In most cases, the copied data is sent abroad, where an accomplice takes control . Cash withdrawals from accounts therefore often take place abroad.
Don’t become a victim!
It is nice to know exactly how those skimmers do that, but as mentioned earlier, it is impossible for the victim to see when a pass is being copied. Although most ATMs now have extra security, here are a number of tips to prevent you from becoming a victim of a skimmer.
- Have a limit placed on your account at the bank. This means that the card will be blocked when the withdrawal limit has been reached. This limit applies per day. Of course, this is only possible if you do not pay hundreds of euros per day yourself. You must also keep a close eye on your account, because even with small amounts of money skimming, at some point a very large amount will be stolen from your account.
- Check your banking affairs regularly and have your card blocked immediately if you encounter (even small) unknown transactions.
- Some fake fronts run more smoothly than the real fronts, meaning that the card will not be accepted in one go. If your card is first ‘spit out’ twice by the ATM and only then accepted, it is better to cancel the debit card process and contact the bank.
- Make sure no one is too close when you want to pay by card in a store or other location. It is not polite to stand close to someone who wants to enter a code and it is therefore not surprising to ask people who are too close to take a step back. Hold the ATM on the side where other people are standing. This often additionally blocks their view of the keys. There is also a good chance that your hand will block the view of any camera. Also don’t move too clearly towards the desired numbers.
- It is expected that the smart chip will also be introduced in the Netherlands. Then exchange your card for the smart card with a smart chip. This may not prevent all fraud, but it does prevent a lot.
- If you want to withdraw money, it is wiser to do this at an ATM inside the bank than outside. The skimmers need some time to work on a machine and this is easier outside than inside.
- Almost all ATMs are now equipped with a secure input mouth or slot. The customer who wants to make a transaction is shown in advance a picture on the screen of what the ATM should look like. If the input slot looks at all different from the picture, do not proceed. Not even when the person behind the cash register says that this is possible because the ATM has just been adjusted. You may be talking to the skimmer itself at that moment. It is better to pay in cash or with the chipknip. This is (still) safe to use.
Some machines now have extra security and block when someone tries to adjust or remove the original input mouth or slot. This was necessary because it turned out that skimmers were able to perfectly recreate the fake slots and input mouths. For example, the picture on the machine for debit card payments was no longer useful, as no differences were noticed.
Skimmers have discovered how they can easily get your data and your PIN code. Although their techniques have now been made known and the machines have been secured, it is always possible that they will develop a new way of skimming. Therefore, check all your payment transactions regularly and keep a close eye on everything when withdrawing from the wall or in stores, etc