Automatic Teller Machines have revolutionized banking due to their convenience and availability, but Automated Teller Machines are likewise increasingly targeted by thieves who definitely have devised numerous approaches to defraud customers and banks alike. There are a few various kinds of ATM fraud, so it is important to really know what to watch for and exactly how you can prevent it.
• Card Skimming
One way of skimming involves installing a card reading machine into the cash card entry slot of the ATM, then hiding another miniature camera overlooking the PIN pad. As soon as the thieves remove the skimming device, they will use the data gleaned to produce counterfeit cards and make use of the legitimate PIN numbers to make withdrawals. These devices are usually very sophisticated, and are designed to look like part of the ATM machine. Another way thieves gain control of your account is to install a card trapping device into the card slot. The device traps the card, and the customer is frequently tricked into entering their PIN again, while the thief watches. When the customer eventually leaves, the thief removes the device containing the captured card, utilizing it in making withdrawals.
• PIN Compromise
This method could be as simple as someone peering over your shoulder, referred to as “shoulder surfing” to obtain your PIN, then distracting you and stealing your card. A more high-tech method involves thermal cameras, which can detect heat signatures from your fingers, allowing the thief to decipher the order that you entered the digits of your PIN. Fortunately these only work on plastic key pads, and have roughly an 80% possibility of success.
• Deposit Fraud
There are a few different ways of deposit fraud. One involves a person profiting from bank processing rules and withdrawing funds before they’ve been verified and cleared the account. This can be as elementary as depositing an empty envelope, or 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 has not.
• Transaction Reversal
This method involves some skilled manipulation of the ATM, resulting in the host computer believing that the consumer has not received their cash, thereby reversing the transaction. Another version of this technique involves an accomplice at the ATM network who works with the thief to defraud the system through the transaction reversal method.