Card skimming devices can be hard to spot. But you can reduce the chances of credit card fraud by keeping your PIN secure and checking your transactions regularly for suspicious activity.
Credit card skimming is a form of theft where criminals use a small device (or "skimmer") to steal your credit card information.
These skimming devices can be hard to spot. They're often attached to ATMs or designed to look like a proper card reader in a store.
Always keep your PIN secure, look twice at suspicious ATMs or card readers, and check your credit card transactions for suspicious activity.
How does credit card skimming work?
Credit card skimming devices can be designed to look like hardware on an existing ATM or like a regular, in-store card reader (for example, an EFTPOS machine).
When a credit card is processed through one of these devices, it captures the details stored on the card’s magnetic strip.
Skimming thieves will later return to download the stolen data of the people who’ve used the tampered device. With that data, they create counterfeit clone credit cards or even directly steal money from bank accounts.
How to prevent credit card skimming
Keep your card in sight. Hold on to your card and make sure you are the one to use it – don't hand it over to a member of staff.
Never share your PIN. Don't tell anyone your PIN or write it down.
Be discreet with your PIN. As well as not sharing your PIN, cover the keypad when you enter in the numbers.
Look for signs of tampering. Particularly with an ATM, always check for suspicious features, like loose parts.
Avoid outdoor ATMs. While this isn't always necessarily true, ATMs inside malls are harder to tamper with.
Check your credit card statement. The sooner you identify fraudulent transactions, the sooner your account can be frozen.
Report suspicious activity. Immediately call your bank, the ATM provider (where applicable) and local authorities if you suspect anything. You can also report it to Crime Stoppers on 1800 333 000 when in Australia.
Notify your bank when you go overseas. This will enable your bank to better spot suspicious and/or legitimate transactions.
Credit card skimming is on the rise
Finder research found that Australians have lost over $1.6 billion in credit card skimming and other types of card fraud in 2024. 1 in 10 Australians have had their card details stolen, and lost on average $781 per victim.
And this is not a new trend. The Australian Payment Fraud Report 2024 also found a 22% year-on-year increase in card fraud in 2023.
Common signs of skimming devices
Be suspicious if:
Part of an ATM card reader or EFTPOS machine look loose, flimsy or seems to be added on top of an existing machine.
You're paying in a store and your card is scanned or tapped on 2 separate devices.
You notice part of the ATM or EFTPOS machine looks shiny and new compared to the rest of the device.
You see someone hanging around watching you near an ATM.
Credit card features that help protect you against skimming
Chip-and-PIN technology. The embedded microchip holds encrypted details about your card which makes it more difficult for skimmers to obtain your information. The PIN also helps verify in-person transactions so that it’s harder for thieves to use your card for fraudulent purchases. As you are not always required to enter a PIN, you should still check your credit card statement.
Fraud monitoring services. Most credit card providers have established security systems and in-house fraud monitoring teams that can quickly detect unusual card activity.
Zero liability. This is a form of consumer protection that all credit card providers are obliged to give you. It means you will not be held liable for fraudulent activities that appear on your account. However, there are certain conditions: you are obliged to report any fraudulent activity as soon as you notice it, and you must also take reasonable care to protect your card from loss or theft.
Where to get help
There is support out there for victims of counterfeit and skimming fraud. The first thing you should do is speak to your bank so it can put the necessary steps in place to prevent any fraudulent activity from taking place. It may also be able to recover funds thanks to the zero liability polices in place.
You should also contact the police in your state, as well as report the scam to the ACCC. There is counselling support available too.
Rebecca Pike is Finder’s senior money writer, with over 10 years of experience in mortgages and personal finance. A frequent TV and radio commentator, she frequently appears on Sunrise, A Current Affair, 9News, and Sky News, and contributes expert analysis to publications like Yahoo Finance and The Latch. Rebecca previously served as Editor of Mortgage Professional Australia. She has a Master’s degree in Journalism as well as ASIC-recognised certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products, which comply with ASIC guidelines. See full bio
Rebecca's expertise
Rebecca has written 225 Finder guides across topics including:
If you need cash quickly there are some credit cards that offer low interest rates on cash advances. Compare your options here and learn about the costs.
For anyone who has paid for a taxi or booked a flight with their credit card and walked away feeling robbed: here's the latest news on credit card interchange fees.
If you have debt collectors contacting you about overdue accounts, find out what rights and options you have to work through this process in a way that’s reasonable for you.
Calculate how much you're paying in interest based on your current credit card repayments and discover how much you should pay each month to meet your financial goal.
Important information about this website
Finder makes money from featured partners, but editorial opinions are our own.
Finder is one of Australia's leading comparison websites. We are committed to our readers and stand by our editorial principles.
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.