ATM Scams

ATM Scams: Protect Yourself from Fraud

By Tara A. Spears

The holiday season is prime time for fraudsters, and this year, many are targeting local ATMs. With many retirees, particularly expats, relying on foreign bank accounts and regular monthly deposits, they are seen as prime targets for identity thieves. Don’t become a victim! By following a few simple safety steps, you can avoid having your bank account compromised.

Criminals use a variety of methods to steal from ATM users, including hacking into bank systems, phishing scams, card skimming devices, and even setting up fake ATMs. Understanding these tactics is key to keeping your accounts secure.

What is Skimming?

Skimming occurs when criminals install hidden devices on ATMs or other card readers—such as gas station pumps—to secretly capture your credit or debit card information when you swipe it. These devices record the data on your card’s magnetic stripe and sometimes even record your PIN with a hidden camera. In some cases, the information is transmitted wirelessly to the thief.

How Skimming Works:

1. The skimming device captures your card’s information during the transaction.
2. A hidden camera records your PIN as you enter it.
3. Thieves then use the stolen information to create counterfeit cards or access your bank account.

On average, criminals can steal $30,000 per skimming incident, according to ADT Security Solutions.

Signs of a Skimming Device:

• Loose or unusual parts: Check the card reader for any signs of tampering, such as a loose or unusually placed card slot.
• Out-of-place attachments: Some skimming devices are placed over the original card reader, so pay attention to any extra layers or modifications.
• Suspicious cameras or attachments: Be on the lookout for hidden cameras, often mounted above or around the keypad, or phony keypads placed over the real ones.

Types of ATM Scams

Here are some of the most common ATM scams to be aware of:

1. Skimming and Card Cloning: Fraudsters use a “skimmer” to read the data from your ATM card. After they’ve gathered the information, they can create counterfeit cards and steal money from your account. They may also use a hidden camera to record your PIN.
2. The Lebanese Loop: In this scam, a small steel loop is inserted into the card slot of the ATM, trapping the victim’s card. The scammer may approach the victim and offer assistance, advising them to enter the PIN multiple times to retrieve the card. Once the victim leaves, the thief removes the loop, takes the card, and uses the PIN to withdraw money later.
3. Wi-Fi Hacking: Criminal hackers use unsecured Wi-Fi networks and specialized tools to capture transaction data when banks fail to protect their systems with strong encryption. This type of scam is more common in places with public or unsecured networks.
4. Bandit Machines: A “bandit” machine looks like a legitimate ATM but is set up by fraudsters to capture your data. The criminal places the fake ATM near a real one, with an “out of order” sign on the legitimate machine, tricking customers into using the fraudulent one. Once you insert your card, your information is stolen.
5. Phishing and Unsolicited Emails: Phishing scams remain one of the easiest ways for criminals to steal personal information. Fraudsters send emails that appear to be from legitimate institutions, asking you to click on a link and enter your account information. Never click on suspicious links in emails, especially those related to banking. Always visit websites by typing the URL directly into your browser or using a trusted bookmark.

How to Protect Yourself from ATM Fraud

Follow these steps to minimize your risk of falling victim to ATM scams:

1. Set a Low Withdrawal Limit:
   Keep your daily ATM withdrawal limit as low as possible to reduce the potential loss in case of fraud.
2. Guard Your PIN:
   Memorize your PIN and keep it in a secure location—never write it down or share it with anyone. When entering your PIN at the ATM, make sure no one is watching.
3. Be Alert to Your Surroundings:
   Don’t allow anyone to distract or assist you at the ATM. If someone seems overly interested in your transaction, it’s best to cancel and leave.
4. Check Your Card:
   After completing your transaction, make sure the card you hold is yours. Scammers may try to swap cards, so double-check before you walk away.
5. Don’t Use Out-of-Service ATMs:
   If multiple ATMs in your area are out of order, it’s possible they’ve been intentionally tampered with to redirect users to a compromised machine. Stick to ATMs located inside bank branches when possible.
6. Use Trusted ATMs:
   Whenever possible, use ATMs inside bank branches, which are typically monitored by security cameras or staff. Outdoor ATMs, especially in unguarded areas, are more vulnerable to tampering.
7. Be Cautious of Unsolicited Emails:
   Never click on links in emails requesting your banking information. These are often phishing attempts. Always type the website address directly into your browser or contact the institution by phone to verify the request.

Conclusion

By staying vigilant and following these simple guidelines, you can protect your bank accounts from fraud. Always be cautious when using ATMs and online banking services, and report any suspicious activity to your bank immediately. Safeguard your personal information, and you’ll significantly reduce the risk of falling victim to ATM scams.

ATM Scams