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Walmart shoppers may have used fake payment machines that look identical to the real thing — here's how to avoid 'skimmers'

Dominick Reuter   

Walmart shoppers may have used fake payment machines that look identical to the real thing — here's how to avoid 'skimmers'
Retail2 min read

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  • Police have seized remarkably sophisticated card skimmers that were installed at several Walmarts.
  • The devices appear "identical" to the actual payment terminals used by the retailer.

Authorities have seized a batch of remarkably sophisticated credit card skimmers that fraudsters installed in Walmart stores in central New York and Maine.

The skimming devices are designed to fit over the real payment terminal in order to capture customers' financial data during a transaction.

What makes these skimmers particularly interesting to law enforcement is how precisely they match Walmart's actual terminals, and how quickly they were able to be installed.

"The device looks identical to the card reader at the register. The skimming device even has the same logo at the top of the device," New York State Police Major Vincent Lightcap noted in a statement earlier this month.

Security footage from July 3 shows three suspects quickly and surreptitiously fitting the device onto a checkout lane payment terminal at a Walmart in Oswego, New York, even as a Walmart employee is ringing up their merchandise. Syracuse's NewsChannel 9 posted the footage on YouTube last week.

In a statement to Insider, Walmart said that a safe shopping experience is a "top priority" and that the company continues to review and enhance security for in-store transactions.

"Also, this situation remains an on-going criminal investigation, and we're actively engaged with various law enforcement agencies," the statement added.

Police told NewsChannel 9 that 14 stores in New York and two in Maine each had a single skimmer installed between July 2 and July 5. The devices were removed on July 5 and July 8 when Walmart staff discovered them.

The station also said investigators found the devices were battery-powered, had bluetooth antennas, and were equipped to capture magnetic swipes as well as record keypad entries. It's not clear whether the devices could read the chip on an inserted card.

How to avoid a 'skimming' scam

A New York State Police spokesperson told Insider on Monday that no shoppers had reported themselves as victims of the fraud yet.

The FBI estimates credit card skimming fraud costs consumers and financial institutions more than $1 billion per year, and recommends shoppers take precautions to avoid falling victim to the scam.

In particular, the agency recommends:

  • Using chip or contactless options instead of magnetic swipes wherever possible.
  • Quickly inspecting the faceplate of a payment terminal and giving it a light tug before using it.
  • Covering the keypad while entering your PIN or ZIP code.

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