StormWarning! Blog

South Africans should be vigilant about the persistent threat posed by physical card transactions, including card skimming, which steals bank card information.

According to the South African Banking Risk Information Centre (SABRIC), reported losses from counterfeit credit card fraud reached R142 million in 2022, while debit card fraud resulted in losses of R270 million.

Counterfeit card fraud, or card cloning, begins with stealing information from a bank card’s magnetic strip using a skimming device. This device captures details such as the card number, cardholder’s name, and expiry date, which are then used to create a counterfeit card capable of performing transactions with the genuine card’s information.

Skimming devices can also capture the cardholder’s PIN by placing a fake keypad over the ATM’s keypad or installing a camera to record the PIN entry.

Once attackers have skimmed a card and stolen the information, they can use it in several ways, including creating fake credit cards, selling the information online, or making fraudulent purchases.

Although this type of crime has declined in recent years, partly due to the rise of NFC-based contactless “tap-and-go” payments, it remains a significant issue in South Africa. Therefore, recognizing how these devices are concealed at ATMs is crucial.

A visual and physical inspection of the ATM can help identify skimming devices. One method is to check the alignment of the card reader with the attached panel, which may reveal a skimming device placed over the card reader. If it appears suspicious, compare it to a card reader at another ATM.

Here are examples of a card skimmer before and after removal, showing the skimmer in place and then removed. 

Digital card skimming, or eSkimming, is also a concern. For example, a Magecart attack involves attackers using a fake or infected website to collect payment card information. The infected website mimics the target site, such as an online store or booking platform.

Card skimming can also occur at a merchant’s point of payment using tampered devices. Perpetrators often supply handheld skimming devices to personnel at retail outlets, such as waiters and cashiers. The PIN is stolen either by peeking or using thermal technology when the victim enters it.

To avoid this type of skimming, if you cannot insert your chip card and keep your thumb fully on the card, do not enter your PIN.

SABRIC provides the following tips to prevent your card from being skimmed:

1. Follow the ATM screen instructions carefully.
2. Be alert to your surroundings.
3. Avoid using the ATM if loiterers or suspicious individuals are nearby.
4. Remember that fraudsters may appear well-dressed, well-spoken, and respectable.
5. If disturbed while transacting at the ATM, your card may be skimmed by being removed and replaced without your knowledge. Cancel the transaction immediately and report the incident using your bank’s stop card toll-free number, displayed on all ATMs and the back of your bank card. This can also be done via your mobile banking app.
6. Leave immediately after successfully transacting at the ATM.
7. Be wary of strangers asking you to return to the ATM to finalize a transaction, as skimming may occur during this request.
8. Never force your card into the slot if you experience difficulty, as it might have been tampered with.
9. If your card is swallowed by an ATM, do not leave until you have canceled it.
10. Familiarize yourself with the appearance of your ATM to detect any foreign objects attached to it.
11. Do not ask anyone for assistance at the ATM, not even security personnel or a bank official. Instead, go into the bank for help.
12. Do not insert your card if the screen layout is unfamiliar.
13. Whether at a restaurant, retail store, filling station, or tollgate, ensure you never lose sight of your card.
14. Regularly check your balance and report discrepancies to your bank immediately.