How do skimming devices steal information from debit and credit cards?

Skimming is a form of cybercrime where criminals use illicit electronic devices to secretly capture sensitive data from debit and credit cards.12

These devices, known as skimmers, are designed to look like legitimate card readers and are placed over the actual card slots on ATMs or gas pumps. When a user inserts their card, it passes through the fraudulent reader before reaching the real one, allowing the skimmer to read and record the account information stored on the card's magnetic strip.342

To obtain a user's personal identification number (PIN), criminals may also install a connected, fake PIN pad over the original or use a small, hidden camera to record the keystrokes as the user enters their code. In some cases, criminals may even set up entire fraudulent ATMs that appear legitimate but are designed solely to harvest card data and PINs from unsuspecting users.34

Once the information is captured, it is typically used to create counterfeit cards to make unauthorized purchases or withdraw funds directly from the victim's bank account.34