U.S. Card Skimming Fraud Grows 700+% in First Half of 2022

Card skimming and scamming fraud are major issues that cost consumers and businesses billions of dollars each year in the United States. Card skimming involves the illegal collection of credit/debit card information through devices called skimmers attached to payment terminals like gas pumps or ATMs. The stolen data is then used to create counterfeit cards for fraudulent purchases. Scamming fraud refers to deceptive practices aimed at tricking individuals into giving up sensitive financial information like account numbers and passwords. Common scams include phishing emails impersonating banks or fake websites designed to capture login credentials.

According to industry estimates, losses from card skimming and various scamming tactics totaled over $16 billion in the United States in 2021 alone. This massive annual cost is shared by banks, retailers, payment processors and ultimately consumers through higher fees and interest rates. As chip card technology becomes more widespread, skimming losses are declining somewhat. However, increasingly sophisticated online scams continue driving up fraud losses year over year, posing an ongoing threat to consumers and the entire payments ecosystem. Enhanced security measures and public education campaigns are crucial to combating these costly criminal activities.