Although no ATM is ever guaranteed to be safe from skimming, Allpoint ATMs are in locations that discourage the possibility. This is great news for your cautious cardholders!

What is skimming?

Skimming is a hi-tech method by which thieves capture your personal or account information from your credit card, driver’s license, or even passport. An electronic device used to capture this information is called a “skimmer,” and can be purchased online for under $50.00. Your card is swiped through the skimmer and the information contained in the magnetic strip on the card is then read into and stored on the device or an attached computer.

Skimming is predominantly a tactic used to perpetuate credit card fraud--but is also a tactic that is gaining in popularity amongst identity thieves. Skimming is a problem, not just in the U.S, but globally. As the use of smart card technology grows, as evident with its integration with driver’s licenses and passports, it is likely that skimming will continue to grow as a popular tactic of identity thieves.

It can take 30-60 days until you realize you’ve been “skimmed” which gives the thief plenty of time to get away.  The longer it takes to identify that you’ve been skimmed (identify theft and account fraud), the larger the financial impact on the victim.

It is not uncommon for a thief to be bold enough to tamper with an ATM machine. Typically, a "card trapping" device is inserted into the ATM card slot. This trap scans the card and stores its associated information or just traps the card and doesn't return it to the owner. There is no cash dispensed in either case and the crooks retrieve the cards and information at a later time.

What can your cardholders do?

http://idtheft.about.com/od/preventingidentitytheft/p/PreventSkimming.htm

Closely monitor anyone who handles your card. To protect against skimming, closely watch anyone that you give your card to for processing, such as a waiter, clerk, attendant, etc. If at all possible, do not let them out of your sight. If a clerk makes a hard copy, retrieve the carbons.

Keep low-limit credit cards. Keeping a low credit limit on your credit cards restricts the amount of money that thieves can steal. Although not exactly a prevention tactic, it will help if you fall victim.

Sign all credit cards. Sign all credit cards immediately upon your receipt of them. You can also write "Check ID" so that the clerk, if they actually read the back, will ask for ID for verification during a transaction.

Cancel credit cards that you do not use. It is important to cancel all credit cards that you do not use and to monitor the ones that you do use.

Be aware of your surroundings. The first step to prevent skimming is understanding what is going on around you. When at an ATM cover the key pad when entering your pin. Prior to inserting your ATM card, check the ATM card reader to make sure that it looks appropriate and is not altered.  

Take your receipts. Do not leave receipts at ATM's, teller windows, gasoline pumps, or with a clerk.

Protect your PIN. I can't tell you how many times I hear of people writing the PIN to their Credit or ATM card on something that they keep in their wallet, or even worse--writing the PIN on back of the card itself! Don't do it. Commit the PIN to memory as it is very obvious that a thief having the card and the PIN is not going to work out well for you.