Financial fraud is a massive problem throughout the world. Perhaps the biggest issues arise from a credit card fraud. One of the most common type of credit card fraud is an ATM scam, but what exactly does this entail? Well, thieves steal money, account information and identities. ATM fraud refers to illegal transactions that lead to fraudulent deposits or skimming card information. This is carried out involving an ATM.
- Credit Card Fraud and ATM
According to online fraud prevention site Big scammers, many financial institutions have made it easy to withdraw funds at an ATM. Unfortunately, this has also made it easier for scammers to cheat the machine. Most ATMs credit the account holder at least a portion of the deposit on completion of the transaction. This ensures that ATM fraud is easy for those who make fake deposits and complete the transaction. But details can be had of such transactions, so these are the least common type of ATM fraud.
- Skimming Information, Making a Quick Buck
Of greater concern to financial institutions, credit card agencies and cardholders are various kinds of ATM fraud that involve stealing the cardholder’s information when the ATM is used. Stealing the information can be carried out in numerous ways. A device may be implanted on the machine causing the card to be stuck in the machine. The scammer will then retrieve the card when the cardholder leaves the area in search of help. Another transaction can be carried out with the card and money can easily be withdrawn.
Another way out for scammers is to use cameras close to the ATM machine that record the pin number. A duplicate of the card is then made by the thief for purchasing or withdrawing funds. This kind of ATM fraud has been replaced by card skimmers.
A card skimmer is a device paid on the ATM which cannot be detected by machine users. The device reads and records the card information and pin number. The scammer removes the device at a later time and uses the information to make duplicate cards.
Skimming machines are attached to the credit card entry slot. Counterfeit cash cards can easily be created perpetrating the credit card fraud. These skimming machines are made to look like the part of the ATM so that the customer gets fooled.
- Shoulder Surfing
This occurs when criminals check over the cardholder’s shoulder to see the PIN being entered. Then they carry out the credit card fraud, by stealing the card of the victim. A popular distraction is dropping money on the floor and indicating to the credit card holder that they have dropped it. A credit card fraud is easy to carry out, by these veteran scammers.
- Card Trapping Devices
In this tactic central to a credit card fraud, a device is inserted into the card slot that retains the credit card inside the machine. Victims are tricked into entering the pin again while the scammer records it. After the cardholder realizes the problem will not go away, he/she may leave to get assistance. Meanwhile, the criminal will remove the device holding the cash card and withdraw cash with the PIN information acquired.
- How to Avert ATM Fraud
ATM fraud is a crime that is on the rise. But there are ways you can avoid this credit card fraud. If the skimming machine is suspected, do no try to remove it. This can damage the machine and alert the scammer. The only way out is to call the police or contact bank associates immediately. Another elementary precaution to take is to never keep debit or credit card and PIN number together. Don’t let others see your PIN number and cover the typing hand while keying in the pin.
ATM attacks and credit card frauds continue to make news despite technology running ATM networks becoming secure and customers becoming vigilant. Rather than being a smash and grab crime, an ATM fraud requires careful planning. So, credit card companies as well as consumers need to be alert to avoid this kind of credit card fraud.
- Anti Skimming Solutions
Though skimming machines are used, anti skimming devices, EMV technology and contactless ATM functionality. Contactless capability can help. So can an alert and vigilant approach.