Skimming is the unauthorised copying of information stored on the magnetic strip of debit and credit cards. This information is often used by criminals to withdraw cash from ATMs, or create a counterfeit card, which is then used for fraudulent transactions in retail outlets or on the Internet or at ATMs.

Criminals generally use two methods to skim cards. Firstly, they use card readers or a skimming device that resembles a pager at the point of sale. In other cases, a device and a hidden camera is attached to an ATM which captures information from the cards’ magnetic stripes and PIN entries.
  
If a bank or the police identifies skimming has occurred, then the customer will not be responsible for any related fraudulent transactions on their account/s.

David Bell, Chief Executive of the ABA, said: “When skimming is suspected, banks will conduct an investigation and funds are restored to customers – the innocent victims of this crime. In other words, the bank wears the loss.”

“The latest arrests are a strong indication of how banks and law enforcement are working together to protect customers and of course banks are hoping for more arrests and convictions.”

“Banks take security very seriously and ATMs are regularly checked. Also, banks have computer systems in place to constantly monitor transactions and if a transaction is identified as suspicious, it will be investigated to ensure there is no breach of security.”

“If a bank suspects fraudulent activity, suspicious transactions will be stopped on the account. In addition, a bank staff member might contact the customer to discuss any unusual activity such as the card being used overseas, when it is usually used domestically.”

Mr Bell added: “We urge people who notice something out of the ordinary at an ATM to contact the ATM owner or the police and report their suspicions immediately. Any delay impacts the banks’ ability to prevent fraud occurring on accounts.”

In addition to banks’ security measures, bank customers can take simple precautions to protect themselves against card skimming:

• Always be careful to shield your PIN when using an ATM or EFTPOS terminal. Use a free hand to cover the key pad while you enter your PIN.
  
  
• You should treat your card like it is cash and make sure you never lose sight of it. If possible, don’t give your card to a waiter or shop assistant and let them walk out of your sight.
  
  
• Be vigilant in checking your statements. Always report any unauthorised or suspicious transactions billed to your account and contact your bank immediately, even if the unauthorised transaction is a very small amount.
  
  
• Make it a priority to get your card back after completing a purchase. Sometimes cards are intentionally retained by salespeople in order to later commit fraud.
  
  
• You may wish to lower your card limit which prevents a criminal spending more than the determined amount if the card was ever lost, stolen or cloned.