Skimming, where criminals use hidden digital readers to steal debit and credit card information, is a pervasive threat that can result in significant financial losses for businesses. The FBI estimates that ATM and point-of-sale (POS) skimming generates more than $1 billion for criminals annually. So if your business offers or operates these machines, you need to assess your risk and take steps to prevent skimming from happening on your premises.
Skimming is widespread among thieves because it's a relatively straightforward crime to perpetrate. Fraudsters secretly place a skimming device — usually a plastic overlay — on an ATM or POS reader to capture card data and users' PINs. Alternatively, they might use hidden cameras focused on the keypad or even a "dummy" keypad. They then take the stolen information, create counterfeit cards called clones and use them to withdraw funds from victims' accounts.
Most victims don't know their accounts have been compromised until they see their statements. Consumers generally are protected from large personal losses by liability laws, but businesses can suffer significantly. If, for example, an ATM or POS reader in your retail space is targeted, you could face customer lawsuits and lost business.
To protect your business, situate ATMs and POS readers in well-lit locations near security cameras. Make sure your cameras clearly capture the equipment and surrounding space. Also regularly review surveillance footage to ensure no one has interfered with the cameras or your machines. Other ways to help prevent and detect skimming include:
Protecting against ATM and POS reader skimming requires ongoing vigilance and a multi-layered approach. Consider subscribing to newsletters offered by your bank and law enforcement agencies that can keep you updated on the tools and techniques criminals use to skim. Contact us for help assessing your business's fraud and theft risk.
Get in touch today and find out how we can help you meet your objectives.
