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Introduction

Cash machine fraud is not a type of fraud but describes the location where it occurs i.e. where the person withdrew money at an ATM (Automated Telling Machine) and had their account compromised.

Although fraud at cash machines in the UK has increased significantly in the last five years, it accounts for less than ten per cent of total plastic card fraud losses. Skimming at ATMs is a growing trend, often perpetrated by organised Eastern European criminal gangs.

How the frauds work

Card Reading Devices

* In the case of skimming at ATMs a skimming device is attached to the card entry slot and a separate miniature pinhole camera is hidden overlooking the PIN pad. This enables the criminal to produce a counterfeit card and withdraw money at a cash machine using the legitimate PIN. These devices are highly sophisticated and look as if they are part of the machine itself. The device may only be placed on a machine for a very short period of time whilst the fraudsters remain nearby. The fraudsters will eventually take the reading devices off and move to another location and do the same again.

Shoulder Surfing

* Shoulder surfing – where criminals look over a cardholder’s shoulder to watch the PIN being entered, and then steal the card using distraction techniques or pickpocketing. This may be by dropping money on the floor and pointing out to the person at the machine that they have dropped it.

Card Trapping Devices

A device, inserted into a cash machine’s card slot, retains the card inside the cash machine. The criminal tricks the victim into re-entering the PIN while the criminal watches. After the cardholder gives up and leaves, the criminal removes the device, with the card, and withdraws cash.

The Association for Payment Clearing Services (APACS) are working hard with industry and law enforcement to reduce the volume of criminality relating to ATMs. In the meantime there are some basic things you can do:

* If you suspect a device has been placed on an ATM DO NOT ATTEMPT TO MOVE IT . These are expensive devices and suspects may use violence if they think their precious commodity is likely to be interfered with.
* Instead call the police or contact the bank immediately
* Do not keep your card and PIN number together
* Be mindful of people behind you at cash machines. Do not let others see your PIN number
* When keying in your PIN try to cover your typing hand

Image via Wikipedia

Cash machine fraud is not a type of fraud but describes the location where it occurs i.e. where the person withdrew money at an ATM and had their account compromised.

Although fraud at cash machines in the UK has increased significantly in the last five years, it accounts for less than ten per cent of total plastic card fraud losses. Skimming at ATMs is a growing trend, often perpetrated by organised Eastern European criminal gangs.

How the frauds work

Card Reading Devices

In the case of skimming at ATMs a skimming device is attached to the card entry slot and a separate miniature pinhole camera is hidden overlooking the PIN pad. This enables the criminal to produce a counterfeit card and withdraw money at a cash machine using the legitimate PIN.

These devices are highly sophisticated and look as if they are part of the machine itself. The device may only be placed on a machine for a very short period of time whilst the fraudsters remain nearby.

The fraudsters will eventually take the reading devices off and move to another location and do the same again.

Shoulder Surfing

Shoulder surfing – where criminals look over a cardholder’s shoulder to watch the PIN being entered, and then steal the card using distraction techniques or pickpocketing. This may be by dropping money on the floor and pointing out to the person at the machine that they have dropped it.

Card Trapping Devices

A device, inserted into a cash machine’s card slot, retains the card inside the cash machine. The criminal tricks the victim into re-entering the PIN while the criminal watches. After the cardholder gives up and leaves, the criminal removes the device, with the card, and withdraws cash.

The Association for Payment Clearing Services (APACS) are working hard with industry and law enforcement to reduce the volume of criminality relating to ATMs. In the meantime there are some basic things you can do:

• If you suspect a device has been placed on an ATM DO NOT ATTEMPT TO MOVE IT . These are expensive devices and suspects may use violence if they think their precious commodity is likely to be interfered with.
• Instead call the police or contact the bank immediately
• Do not keep your card and PIN number together
• Be mindful of people behind you at cash machines. Do not let others see your PIN number
• When keying in your PIN try to cover your typing hand

Source: http://www.met.police.uk/fraudalert/atm_fraud.htm