The Tool Desk
Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →ATM skimming steals card details, often including a PIN; jackpotting makes an ATM dispense cash from its own supply. Skimming puts cardholders’ credentials and accounts at risk. Jackpotting targets the machine’s software, hardware or cash dispenser. The term “skimming” can also refer to software that captures credentials, so the method matters as much as the label.
How skimming and jackpotting differ
| Point of comparison | ATM skimming | ATM jackpotting |
|---|---|---|
| Primary target | Payment-card data and often the PIN. | The ATM’s software, hardware or dispenser control. |
| Immediate result | Stolen credentials can be copied and used for fraudulent cards or transactions, including withdrawals. | The ATM releases cash from its own supply without an ordinary authorized withdrawal. |
| Who is most directly exposed? | Cardholders, whose payment data and accounts may be compromised. | The ATM operator, whose cash and machine operations are targeted. |
| Commonly documented methods | False or inserted card readers, hidden cameras, false keypads, and—in a broader technical sense—software that intercepts card and PIN data. | Malware that controls an ATM computer, direct interaction with dispenser hardware, or a related black-box method using an attacker-controlled computer. |
What happens in an ATM skimming attack?
In physical card skimming, a device placed in or over the card reader captures card information as a customer uses the ATM. A hidden camera or false keypad may capture the PIN as well. Criminals can use the stolen information to make fraudulent cards or carry out transactions. The FBI’s ATM skimming explainer describes this basic mechanism; it dates to 2011, so it explains the underlying method rather than asserting that every current device works identically.
Physical and software skimming
Consumers often use “skimming” to mean a reader attachment that copies card data. Europol also uses the term for software skimming: malware that intercepts card and PIN information at an ATM. Both forms seek credentials; neither is defined by making the machine dispense its stored cash. Europol’s Internet Organised Crime Threat Assessment 2015 distinguishes software skimming from jackpotting and black-box attacks.
What happens in ATM jackpotting?
Jackpotting targets the ATM’s cash-dispensing process rather than a customer’s payment credentials. Europol defines it as using malware to take control of an ATM computer and direct the dispenser to release money. The FDIC Office of Inspector General describes cases involving physical access and malware that interacts directly with ATM hardware.
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Malware and black-box approaches
- Malware jackpotting: Malicious software takes control of the ATM computer or its interaction with the dispenser.
- Black-box attack: An attacker connects a separate, attacker-controlled computer to communicate with the cash dispenser. It is related to jackpotting but is not the same method as malware running on the ATM.
In either case, the objective is to release cash from the machine outside a normal authorized withdrawal. This differs from skimming, where stolen credentials may later be used to access an account.
What recent U.S. figures do—and do not—show
U.S. government reporting in 2026 puts the scale of jackpotting into context, but it does not provide a like-for-like comparison with skimming:
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- The FBI estimated 700 jackpotting incidents and losses exceeding $20 million in the United States during 2025, according to the FDIC OIG’s report on fraud schemes targeting financial institutions.
- A Department of Justice release dated January 26, 2026 attributes 1,900 reported jackpotting incidents since 2020 to an FBI report and says 2025 alone involved more than 700 incidents and more than $20 million in losses.
These are U.S. jackpotting figures, not skimming counts, global totals or evidence that one attack type causes more losses than the other. The reviewed official sources do not establish a current comparison of skimming and jackpotting losses for the same period and geography. Allegations in a criminal case should also be distinguished from facts established by a guilty plea or conviction.
How consumers can reduce skimming risk
- Inspect the reader and keypad. Look for unusual attachments or anything that appears loose, misaligned or different from the rest of the machine. If the ATM seems tampered with, do not use it; contact the card issuer or ATM operator.
- Shield PIN entry. Cover the keypad with your hand while entering your PIN, even if you do not see anyone nearby.
- Monitor account activity. Check transactions regularly and contact your card issuer promptly about activity you do not recognize.
- Report a retained card immediately. Contact the issuer if an ATM keeps your card rather than following instructions from a stranger or using the machine again.
- Consider tap-to-pay where available. The FBI recommends considering contactless payment as a way to reduce exposure to payment-card skimming. It does not prevent an ATM jackpotting attack.
The FBI’s consumer guidance on ATM skimming covers these precautions. They address card-data theft; consumers do not control the ATM’s internal defenses against jackpotting.
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What ATM operators can do about jackpotting
Jackpotting defenses are primarily the responsibility of financial institutions and ATM operators because they involve machine access, hardware and system configuration. The FDIC OIG and Europol identify controls such as:
- Re-keying ATMs so machines do not share access keys; restricting physical access and replacing standard locks.
- Adding security gates, alarms and tamper-resistant hardware, including screws that secure hard drives.
- Encrypting ATM software and hardening the operating system; Europol also recommends BIOS security and disabling boot from external drives.
- Using CCTV and, where appropriate, license-plate readers to monitor ATM locations.
Controls need to match the ATM’s configuration and current vendor guidance. If an operator suspects jackpotting, the FDIC OIG advises contacting law enforcement and preserving surveillance footage.
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