What is card skimming?

Card skimming is a widespread criminal act where covert hardware is installed on legitimate ATMs, gas pumps, or point-of-sale systems in order to capture card information for future unauthorized purchases.

Put differently, the bad guys use sophisticated equipment to steal your information and your money. Data suggests that this activity accounts for approximately $1 billion in losses annually.

Skimmer detection for retailers

Fortunately, businesses can proactively guard against skimming through the use of skimmer detection devices. The purpose of the device is to scan terminals for signs of unauthorized hardware that may have been installed over or otherwise infiltrated legitimate processing technology.

Costs for devices can range from $500 all the way to $5,000 or $6,000 depending on your specific needs.

Retailers are using this technology much more frequently as business owners become aware of the issue and seek out ways to protect themselves and their customers.

In 2023, Visa reported that businesses who utilized such devices reduced card fraud by more than 23%, as compared to their counterparts who do not utilize layered security. This number only increases for high volume merchants such as grocery stores, gas stations, and ATMs.

What else can businesses do to protect themselves against card skimming?

Skimmer detection, however, is just one layer of security for you to consider. Business owners should be diligent in utilizing real time transaction monitoring, encryption, multi-factor authentication, where appropriate, and general common sense in safeguarding your equipment. Your customers will notice and be appreciative.

Where to get support:

Michigan Retailers Association is proud to provide merchants with strong credit card processing solutions and the knowledge needed to protect sensitive data. I invite you to reach out directly to me at tclement@retailers.com or sales@retailers.com to learn more about how we can help your business.