Important Information About ATM Fraud

Automatic Teller Machines have revolutionized banking because of their convenience and availability, but Automated Teller Machines are likewise increasingly targeted by thieves who have devised numerous approaches to defraud customers and banks alike. There are several various kinds of ATM fraud, so it is important to really know what to watch out for and exactly how you are able to prevent it
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• Card Skimming

One way of skimming involves installing a card reading machine in the cash card entry slot of the ATM, then hiding a separate miniature camera overlooking the PIN pad. As soon as the thieves remove the skimming device, they use the data gleaned to produce counterfeit cards and make use of the legitimate PIN numbers to generate withdrawals. These devices are often very sophisticated, and are made to look like part of the ATM machine. Another way thieves gain control of your bank account is to install a card trapping device into the card slot. The device traps the card, and the customer is usually tricked into entering their PIN again, as the thief watches. Once the customer eventually leaves, the thief removes the device containing the captured card, using it in making withdrawals. • PIN Compromise This method can be as simple as someone peering over your shoulder, known as “shoulder surfing” to obtain your PIN, then distracting you and stealing your card. An even more high-tech method involves thermal cameras, which can detect heat signatures from your fingers, allowing the thief to decipher the order in which you entered the digits of your PIN. Fortunately these only work on plastic key pads, and have roughly an 80% chance of success. • Deposit Fraud There are a few different methods of deposit fraud. One involves a person profiting from bank processing rules and withdrawing funds before they have been verified and cleared the account. This can be as elementary as depositing an empty envelope, or perhaps a bad check. Another method involves trapping the deposit envelope right before it’s inserted into the machine, allowing the machine to register that it has received a deposit when it hasn’t. • Transaction Reversal This method involves some skilled manipulation of the ATM, resulting in the host computer thinking that the consumer hasn’t received their cash, thereby reversing the transaction. Another version of this technique involves an accomplice at the ATM network who works together with the thief to defraud the system via the transaction reversal method.