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Freedom251 › Blog › ATM security

How to Protect Yourself from ATM Skimming and Cash-Trapping Devices

By Freedom251 Team · · 4 min read

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To reduce the risk of ATM skimming, inspect the card reader and keypad, cover your PIN, and walk away if anything looks loose, damaged, crooked, or unfamiliar. Choose a well-lit indoor machine when practical, keep your card in sight, and monitor your account. If an ATM keeps your card or fails to present cash, contact your bank or the ATM operator promptly using a trusted number.

How ATM skimming and cash trapping work

These are different kinds of theft, and recognizing the difference helps you respond appropriately.

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  • Skimming: A device inserted into or fitted over a card reader can capture magnetic-stripe data. A hidden camera or a false keypad overlay may also capture your PIN. The FBI describes these devices and warns that some may be installed inside the terminal, so a visual check cannot detect every threat: FBI guidance on skimming.
  • Shimming: The American Bankers Association (ABA) uses this term for a thin device inserted into a chip reader to intercept or manipulate data between an EMV chip card and the ATM interface. It is not simply another name for every type of skimming: ABA definitions of ATM attacks.
  • Cash trapping: An attachment at the cash dispenser blocks the shutter or catches bills. The cash may be retrieved by the criminal after the customer leaves, making the incident look like a failed withdrawal. Contact the bank or operator rather than leaving without reporting it. The ABA explains the mechanism in its ATM security guidance.

Other deceptive parts can include reader overlays, hidden cameras, PIN-capture overlays, and false ATM faceplates. The FDIC notes that altered seams, loose wires, or an unusually thick keypad can be warning signs, but no single visual clue proves a machine has been tampered with: FDIC consumer guidance, last updated August 15, 2023.

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How to choose and check an ATM

Prefer a visible, well-lit location

When you have a choice, use a well-lit indoor ATM rather than an isolated machine. FBI guidance says these machines are less vulnerable targets, not that they are risk-free. Be mindful of people nearby, unsolicited offers of help, and anyone positioned to watch you enter your PIN. Police guidance also recommends staying alert to distractions: PSNI advice on ATM fraud.

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Look for parts that seem altered

Before inserting your card, look at the reader, keypad, and nearby equipment. Walk away if you notice loose, crooked, damaged, scratched, or extra pieces; a reader or keypad that does not sit flush; or anything that appears out of place. The FBI advises checking the keypad edges before entering a PIN. Do not treat a normal-looking machine as proof that it is safe: some devices can be concealed inside a terminal.

Reduce the chance of someone seeing your PIN

Cover the keypad with your free hand as you enter your PIN. This can obstruct a hidden camera or a person nearby, but it will not stop a false keypad overlay from recording keystrokes. Keep the card in view, complete the transaction without accepting unsolicited help, and put the card away promptly.

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Habits that reduce risk during and after a withdrawal

  • Use a chip-enabled card when available. The FBI says chip technology is harder to compromise than magnetic stripes, but magnetic-stripe data on a chip card can still be vulnerable. A chip card does not make every ATM attack impossible.
  • Watch the transaction. If the ATM behaves unexpectedly, retain the transaction details and note the machine’s location and the time.
  • Turn on account alerts and review transactions. Use available alerts and account controls, and check pending as well as posted transactions so you can contact the issuer quickly if something is wrong.

The FBI estimates that skimming costs financial institutions and consumers more than $1 billion each year. Its cited page does not specify an observation year or methodology, so this should be understood as the FBI’s estimate rather than an audited annual figure.

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What to do if the ATM keeps your card or does not give you cash

If the machine retains your card

Contact your financial institution immediately using the number on your card or the bank’s official app or website. The FBI says a card that is not returned after you end or cancel a transaction may indicate a foreign device. Do not take help from strangers standing near the ATM.

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If cash is not presented

Do not assume the withdrawal simply failed. Note the ATM location, time, and transaction details, then promptly contact your bank or the machine operator. A cash trap can block the dispenser and allow someone to retrieve the bills later, so report the incident before leaving it unaddressed.

If the ATM looks tampered with

Do not use the machine, and do not try to remove or move a suspected attachment. Report it to the bank or operator and local police. PSNI specifically advises against moving a suspected device: PSNI ATM fraud advice.

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If you suspect card data was captured

Contact your card issuer promptly, review pending and posted transactions, and ask about card replacement, account controls, and the dispute process for your account. For a suspected skimming crime, the FBI directs consumers to report it to the Internet Crime Complaint Center (IC3): IC3. Reporting procedures and consumer protections vary by jurisdiction, bank, and card type; follow your issuer’s official process.

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