ATM fraud and skimming is no longer a crime of the future; in fact, it’s becoming more and more prevalent world-wide. With more than 1.7 million ATMs worldwide and new ones installed around every six minutes, the possibilities for skimming criminals are endless. This rapidly growing form of ATM fraud is one of the fastest-growing electronic crimes, costing institutions and consumers $8 billion annually, according to the US Secret Service.
ATM Fraud and Skimming Defined
So what is ATM skimming – it’s a type of fraud where criminals install surreptitious surveillance equipment on ATMs. The electronic devices reads the magnetic strip on cards and grants access to customers’ account records and PINs; using this stolen information, criminals proceed to create new bank cards and extract funds from customer accounts. These devices are usually undetectable by users as they blend into the ATMs hardware. This infographic created by FBI investigative services gives consumers expert education on spotting skimming devices and other means used for fraud. Unfortunately, ATMs aren’t the only places these skimming devices are being used; gas pumps, and POS terminals are vulnerable to skimming devices as well.
FBI suggestions to evade ATM fraud
- Inspect the ATM, gas pump, or credit card reader before using it… be suspicious if you see anything loose, crooked, or damaged, or if you notice scratches or adhesive/tape residue
- When entering your PIN, block the keypad with your other hand to prevent possible hidden cameras from recording your number
- If possible use an ATM at an inside location (less access for criminals to install skimmers)
- Be careful of ATMs in tourist areas, they are a popular target for skimmers
- If your card isn’t returned after the transaction or after hitting “cancel”, immediately contact the financial institution that issued your card
In a recent on-demand webinar, 3VR – a video intelligence company discusses ATM fraud fighting tips and best practices. The experts discussed how intelligent video surveillance platforms, such as 3VR, can be an effective tool for banks to find skimmers quickly. To learn more about the statistics in this article visit the TYCO Integrated Security article from which the information was obtained here.