It's common to have cameras mounted to record you typing your PIN along with skimming your card. It's good practice to cover the pad with your other hand.
I have never put this card in an ATM. It must have been skimmed from a swipe machine in a restaurant.
I still don't know how they got my pin. I can't imagine anyone looking at my pin in a restaurant. It seems like such a hard and non-scalable way to do this kind of thing.
I think that a pinpad is not that hard to hack. OTOH whenever I read about skimmers getting caught, they seem to use really low tech methods - keen eye, perhaps aided with a mirror or a small camera.
I've never used this card in an ATM so it must be from a store that swiped my card.
Here's my questions though, how did the fraudster know my pin number to be able to use the cloned credit card in an ATM?