ATM Fraud – Awareness & Prevention

By: Joe Mancini, Security Manager East Boston Savings Bank

 

You’re reviewing your bank account transactions online when you realize that there are transactions present that you certainly did not authorize or even have knowledge of.  You contact your bank to dispute the charges and that’s when it hits you, someone got your card information and was able to make these purchases.  “How did this happen?  I never left my card anywhere. I always keep my card in my wallet!”  The last place you remember using your card was at the ATM in the mall the other day.  You didn’t leave your card there, but somehow someone was able to get your card information and use it for their advantage.  Welcome to the world of ATM fraud. 

 

A fraudster may install a skimming device in an ATM.  A skimming device works by reading the card information (such as card number) used during the transaction.  These skimming devices are typically installed into or over the ATM card slot.  Some ATM fraud cases involve the suspect installing a small wireless camera in a pamphlet holder.  The pamphlet holder is strategically placed so that the camera in it could capture your personal identification number (PIN) while you type the numbers on the keypad.  Chances are you may not even look twice at the pamphlet holder, let alone notice the camera inside of it.  The suspect may sit in a car in the parking lot with a laptop, viewing a live stream video of you typing in your PIN.  So now the suspect has successfully skimmed your card information and your PIN without you even knowing.    

 

Some of the more sophisticated fraud groups may even go as far as to purchase or lease and operate their own ATM machines.  They could even have the machines placed in malls, gas stations, convenient stores, etc.  Once they are purchased or leased, the suspects install card information reading instruments into the machines, such as skimming devices.  These ATM’s can be setup to complete actual withdrawals meanwhile they steal your card information including any information on the card’s magnetic strip as well as your PIN.  Imagine the damage that 10, 20 or 30 of these ATM’s could create, especially when statistics show that approximately 80% of Americans have an ATM card and 60% of them use it an average of 8 times per month. 

 

The above examples are only two of the various types of ATM fraud schemes out there today.  The key to not becoming a victim of this type of fraud is awareness.  Being aware of what to look for and knowing how to respond will help you from becoming a victim.  The following are some important ATM tips you should consider:

 

-If the machine retains your card, be aware for “overly-friendly” assistance from another customer who states that the same thing just happened to them, then tells you to re-enter your PIN and to try the transaction again. Also, contact your Bank immediately.

-Watch for individuals who may be “shoulder surfing” while you enter your PIN.

-Use ATM machines that are well lit, in a safe location and have by security cameras.

-Review your monthly account statements or even better review your transactions online if possible, regularly.  Report any issues to your Bank immediately.

-Never disclose your PIN number to anyone.

- Immediately contact your bank if you observe any suspicious activity while at the ATM site.