Financial Readings and Information

Automatic Teller Machines have revolutionized banking because of their convenience and availability, but ATM machines are also increasingly targeted by thieves who have devised numerous ways to defraud customers and banks alike. There are several different types of ATM fraud, so it is important to know what to watch for and how you can prevent it.

• Card Skimming

One method of skimming involves installing a card reading machine into the cash card entry slot of the ATM, then hiding a separate miniature camera overlooking the PIN pad. When the thieves remove the skimming device, they use the information gleaned to create counterfeit cards and use the legitimate PIN numbers to make withdrawals. These devices are usually very sophisticated, and are made 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 usually tricked into entering their PIN again, while the thief watches. When the customer eventually leaves, the thief removes the device containing the captured card, using it to make withdrawals.

• PIN Compromise

This method can be as simple as someone looking over your shoulder, known 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 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 several different methods of deposit fraud. One involves a customer taking advantage of bank processing rules and withdrawing funds before they have been verified and cleared the account. This can be as simple as depositing an empty envelope, or a bad check.  Another method involves trapping the deposit envelope just before it is inserted into the machine, allowing the machine to register that it has received a deposit when it has not.

• Transaction Reversal

This technique involves some skilled manipulation of the ATM, resulting in the host computer thinking that the customer 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. Check out this site for services offered to avoid ATM frauds.

While thieves are constantly inventing new methods to defraud ATM customers and banks, it is important to remember that companies that manufacture ATMs and provide ATM services, like Triton ATM, are working hard to prevent fraud with the latest innovations in ATM security.  Be sure to consult with a professional ATM provider for the latest in state-of-the-art equipment.