ATM fraud means more than covering the keypad as you enter your Personal Identification Number (PIN). Just as technology continues to evolve, financial scammers update their methods accordingly. From big data breaches to seasonal fraud such as tax scams, it can be hard to keep up with the latest schemes. That’s why Union Bank brings you crucial information and actionable tips about the latest types of financial fraud. Read on to understand what ATM fraud consists of and how you can avoid falling victim to it.
Common Types of ATM Frauds
Most people would say that the two biggest threats are getting robbed at the ATM or having the person in line behind you view your PIN; however, ATM scams (like data breaches and other financial crimes) have grown more sophisticated in recent years. Thieves don’t need to be present to force you to withdraw the contents of your account. The latest ATM frauds are perpetuated through technology and hacking, so you likely won’t even notice that something fishy is going on. Here are the four most common types of ATM frauds you need to be aware of in 2018:
- Skimming: This type of ATM scam involves a skimmer device that criminals place on top of or within the card slot. To record your PIN number, the criminals may use a hidden camera or an overlay that covers the original PIN pad. Using the card numbers and PIN’s they record, thieves create duplicate cards to withdraw money from consumers’ accounts. Unlike losing your debit card or having it stolen, you won’t realize anything is amiss until unauthorized transactions take place. Take a look at these so you know how to detect ATM skimmers.
- Shimming: This is the latest update to skimming. Instead of reading your card number, criminals place a shimming device deep inside the ATM to record your card’s chip information. The end result is the same as skimming because thieves use the stolen chip data to create “cloned” versions of your debit card.
- Cash-out: This scam targets multiple accounts from the same financial institution. Armed with a hacked bank employee’s credentials, the criminal alters account balances and withdrawal limits. Using stolen debit card numbers captured from a separate skimming attack, they can “cash out” the ATM until it’s out of money.
- Jackpotting: While there are multiple types of jackpotting attacks, typically, these incidents involve gaining physical access to the inside of the machine. The criminals may replace hardware or install malicious software giving them control of the cash dispensing function. Jackpotting is similar to a cash out scam, but it does not require the criminal to have any customer account details or stolen debit card information.
ATM Safety Tips
1. Change PIN regularly
I know you have heard and read this ATM safety tip for hundreds of times. But question for you. When was the last time you changed your ATM security pin? Probably months ago. This is not a right way to protect your money. From now make a habit of changing your ATM PIN regularly. It takes only 2-3 minutes.
2. Is there any skimming device
Skimmers use skimming devices to steal your ATM password and card’s magnetic stripe information; to make a clone card. While using ATM machine, if you notice any suspicious device on the machine then do not swipe your card and notify about it to the concerned authorities by calling on their designated numbers (Usually, banks write their numbers at ATMs to register complaints).So first thing you need to do before you swipe your card is to see if there is any extra device attached to ATM machine card reader or at the front of cash dispenser.If you find any extra device attached then contact concerned bank.
3. Keep ATM PIN secret
Never write down your PIN (personal identification number) anywhere, always memorize it. The only person who should know your ATM PIN should be you.Do not hand over your ATM card to anyone to do ATM transactions. Don’t be lazy.
4. Use ATM alone and beware of shoulder surfing
You might have read outside the ATM machine that one person at a time is allowed. If you’re avoiding this simple warning then you’re unnecessarily putting yourself into danger.You may become a victim of shoulder surfing. In shoulder surfing, person behind you may try to find out your card’s personal identification number (PIN) by looking over your shoulder.The person behind you can see your pin therefore do not allow anyone near your while swiping your card. If person denies going out then you can seek help of security guard.
5. Register for SMS alerts
Always register your mobile number with your bank account to get SMS alerts for transactions. This way you can monitor your account without visiting your bank branch and you can take a quick action to stop a suspicious activity.Make sure your mobile number is updated in the bank records so you get each and every transaction detail through SMS and can take prompt action in case of unauthorized transaction.
6. Immediately Block lost ATM card
Whenever you lost your card promptly block it to minimize any chances of being misused. Just dial customer care number of your bank and inform them about the loss so they can take immediate action to protect your funds.
7. Don’t save card information on Websites
Many, actually all, eCommerce websites let you save your card details for future purchases. I don’t recommended it because in eCommerce website, data can be breached anytime which includes you card information too. Therefore, follow this simple ATM safety tip of mine, never save your card information, be it credit card or debit card, on online shopping websites.
8. Immediately report Unauthorized Transactions
Whenever you spot an unauthorized transaction, immediately report it by calling to your bank’s customer care number. This way your bank will be able to act swiftly and you will likely be get your refund. As per banking watchdog authorities such as Reserve Bank of India, if customer informs about an unauthorized transaction within a specified time frame then it will be bank’s responsibility to indemnify the loss (if customer is at no fault).
9. Destroy Card
Before you dispose off your closed or damaged debit card, destroy its magnetic stripe and chip completely. Your card’s magnetic stripe contains sensitive information of your bank account therefore tear it into pieces so it couldn’t be used for ill purposes. Also, make sure your damaged card is hotlisted. This way you can avoid yearly maintenance charges too.
How Safe Is Your Money?
More than 95% of transactions in our country are through cash. Nothing surprising…You see this all around. On November 8th the Government scraped 500 and 1000 rupee notes in the economy. These rupee notes accounted for 86% of currency by value in India. The aim of this move was to break the back of corruption and terrorism in India, fueled by black money. (Black money is largely stored in 500 and 1000 rupee notes)…
Now, when so many 500 and 1000 rupee notes are removed all of a sudden, paying in cash is going to be really difficult. A new method of payments is expected to replace paying in cash…Yes, there are several ways you can pay for items you buy…UPI (Unified payments interface), mobile wallets, USSD (Unstructured supplementary service data)…well even the humble credit and debit card. All these are ways of paying, without using cash. The top question on your mind. Is making payments through the cashless route safe?
Are Card Transactions Safe?
There has been a rise in the number of ATM fraud cases in the recent past. Just a couple of months ago, over 32 lakh ATM cards were hacked. So…is your debit card/credit card safe? Your debit and credit cards are vulnerable to fraud, where tricksters use a cunning trick called card skimming.
Fraudsters use a small electronic device called a skimmer, which they hide in the ATM machine. When your debit/credit card is run through a skimmer, this device captures all the details (data), stored on the magnetic strip of your card. This data is copied to a blank cards magnetic strip. Now the fraudster popularly known as an identity thief can easily withdraw cash or make purchases in your name.