Types of ATM frauds and a checklist for your security

After the brutal attack on a woman bank official at an unguarded ATM machine in Bangalore, it’s time for us to think about ATM frauds and know how to overcome such type of incidents in future.

ATM machines are provided to help customers in withdrawing cash, checking account balance and to manage different transactions instead of visiting the branch. However, some peoples are taking this opportunity in a fraudulent manner to make profit.

As a customer or user of ATM we have to be very careful on this. Let us know the kind of ATM frauds that can take place in an ATM machine.

ATM card trapping

Fraudsters use to fit a device that fits the card acceptance slot in your ATM machine by which card will not be ejected after transaction is completed. By the time you report it to your bank; such fraudsters will use the card to withdraw cash from it. Such fraud incidents use to take place after banking hours so that you will not be able to contact the bank official immediately after the ATM frauds takes place.

ATM cash trapping

Similar to card trapping, thieves use to fit a device in to the cash dispenser by which cash will be trapped in to it and you will not be able to get your cash back. After you go out of the machine these fraudsters will come and take out your cash from the instruments that are fitted to cash dispenser. This ATM fraud is most commonly used in remote ATMs.

ATM Card SkimmingTypes of ATM frauds and a checklist for your security

Your ATM card has account data on magnetic stripes on the back of your card. Thieves will insert magnetic strips in the card acceptance slot which will read your account data while inserting it to the slot.

Fraudsters then use your account data on a blank ATM card to swap it in any ATM machine. You will be thinking how these peoples will have access to your PIN, right? While entering your PIN to ATM machine these people use to note it down either from their own fixed camera or device in ATM machines or by standing back to you inside the machine.

How to avoid such incidents

For your safety and security we have prepared a checklist to help you in such kind of incidents;

  • Report your lost or stolen ATM card to bank immediately.
  • Have the bank’s customer care office number in your mobile and call them immediately from the ATM machine where your cash and card got locked inside.
  • Use ATM machine at a safe place
  • Change your default PIN immediately after getting it delivered to your postal address.
  •  Do not use easy to guess ATM PINs like your date of birth or last four digit of your account number. We suggest you to frequently change your PIN.
  • Never share your PIN to anyone and do not write it down with the card. Memorize it.
  • While entering your PIN you can shield the ATM machine with the other hand if you have anyone inside or cameras are placed in such way that it can read your PIN.
  • Have mobile alert message facility from your bank. If you have changed your mobile number then update that immediately to get alert messages for each withdrawal. It will also let you know the ATM machine which has been used to withdraw cash.
  • Before inserting your card into ATM machine check if any external devices are fixed or attached over the card slot or cash dispenser slot. You can look for extra attachments if any fixed in to these places.
  • After completing your transaction be careful to collect your ATM card and cash from the machine.

To prevent ATM frauds, put a per day withdrawal limit to your ATM card and do not keep more than two ATM cards with you. In case someone has forced you inside the ATM machine then do not fight with them. Let the person use your card. He can withdraw maximum up to the withdrawal limit and not beyond that. But by fighting with him you can put your life in to danger.

Editorial Staff at Yourfinancebook is a team of finance professionals. The team has more than a decade experience in taxation and personal finance.