Credit card skimming: how to protect yourself

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.

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By

Rebecca Pike

Edited by

Richard Whitten

Updated

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Key takeaways

  • 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

  1. 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.
  2. Never share your PIN. Don't tell anyone your PIN or write it down.
  3. Be discreet with your PIN. As well as not sharing your PIN, cover the keypad when you enter in the numbers.
  4. Look for signs of tampering. Particularly with an ATM, always check for suspicious features, like loose parts.
  5. Avoid outdoor ATMs. While this isn't always necessarily true, ATMs inside malls are harder to tamper with.
  6. Check your credit card statement. The sooner you identify fraudulent transactions, the sooner your account can be frozen.
  7. 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.
  8. 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

ABS data shows Australians lost $2.2 billion to personal fraud in 2024–25, with net losses of $350 million. The ABS also reports an average net loss of around $152 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.

Click here for a list of places you can get help.

Learn more about avoiding credit card fraud, traps and scams

Sources

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To make sure you get accurate and helpful information, this guide has been edited by Richard Whitten as part of our fact-checking process.
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Written by

Editor, Money
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Rebecca Pike is Finder’s money editor, with over 7 years of experience in mortgages and personal finance. A frequent TV and radio commentator, she frequently appears on Sunrise and 7News, Today and 9News, as well as Sky News, Channel 10 and across radio and print. 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 253 Finder guides across topics including:
  • Home loans
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  • Car Loans
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