Here is how thieves loot money while you transact at ATM? IamCheated.com Research Team | January 07, 2019 5:46:pm

Here is how thieves loot money while you transact at ATM

In the past few years, a lot of people have lost hard earned money to ATM frauds. Fraudsters use different techniques to steal money while people transact at ATMs. ATM frauds are not just restricted to metro cities like Delhi; it has even reached the smaller cities and towns. In the year 2018, many people in cities like Gurgaon, Hyderabad, Bengaluru, Lucknow, and Patna have fallen victim to ATM frauds.

In May 2018, 50 people had lost lakhs of rupees after swiping their ATM cards at a tampered HDFC Bank ATM at Unitech Cyber Hub in Gurgaon. Victims got to know that they had lost their money after they received an SMS from their banks regarding the cash withdrawals.

In this blog, we will discuss various tricks used by fraudsters to loot money while you transact at the ATM.

1. Card Skimming

The common method used by fraudsters to steal money while transacting at the ATM, is card skimming. Now, this fraud can be avoided as the government has made it mandatory to replace all magnetic stripe cards with the EMV chip-based card. EVM stands for Europay, Mastercard, Visa. EMV chip-based cards are more secure when compared to magnetic stripe cards. EMV chip-based cards use higher standards of data encryption and have advanced storage technology.

In the case of card skimming, fraudsters insert a small electronic device called skimmer in an ATM or POS machine. Once the card is swiped at the machine, the skimmer collects all the information stored in the magnetic stripe. This information is then copied on a blank card and used to withdraw cash and make purchases.

See Also: Everything You Need To Know On Card Skimming

2. Hidden cameras

Fraudsters fix hidden cameras on the ATM machine to steal your PIN number. Hidden cameras are usually placed above or near the keypad. So, it is very important to look around before entering your PIN number. You can also hide your keypad with the other hand.

3. Shoulder surfing

Shoulder Surfing refers to fraudsters watching over your shoulder while you carry out transactions at the ATM. This is done to see the PIN number you enter. Once your PIN has been compromised, your money is no longer safe.

Make sure nobody is standing behind you while withdrawing cash from the ATM. If anyone is standing too near, just ask them to move a little backward.

4. Fake assistance

Another method used by fraudsters to steal money is providing fake assistance. They offer help when the card is stuck or to those who do not know how to use the ATM. They usually memorize the PIN number and change the card to carry out fraudulent transactions. So, it is advisable not to take anybody's help while transacting at the ATM.

5. Fake PIN Pad

Under this method, a keypad which looks exactly like the ATM machine’s keypad is placed right on top of the ATM keypad. This keypad captures the PIN entered. So, make sure to check the keypad before you enter your PIN.

6. False front

Here fake ATM covers are used to steal your card details. It is quite difficult to detect the false front, as it covers the machine completely.

See Also: ATM Frauds And Tips To Avoid Them

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