ATM Fraud: What You Need to Know

The first ATM appeared in London in 1967. As ATM technology has advanced since then, criminals and hackers have also evolved their methods, from physical attacks to malware. Today, ATM attacks and fraud are on the rise, and we all need to be vigilant in order to avoid victimization. In this article, we’ll explain why ATMs are vulnerable to fraud and what you can do to protect yourself.

Why are ATMs vulnerable to fraud? The short answer is methods of tampering.

Plenty of ATM fraudsters tamper with the machines for the purpose of stealing card and account information. As fraudsters continue to develop methods of tampering with the terminal, we all need to learn about the signs of ATM fraud in order to prevent and report it.

Types of ATM Fraud

• Skimming: A “skimmer” device is placed over the card reader and keypad, or a camera is placed over the card slot and keypad. Skimmer devices can also steal data from the ATM’s network cables. Overall, the purpose of skimming is to steal the card data and PIN in order to make fraudulent copies of the card.
• Shimming: Similar to skimming, shimming is used to steal card data from the chip. Shimming devices are set up between your card and the ATM chip reader. Once thieves steal data from chip cards, they can turn it into a fake magnetic stripe card.

• Card Trapping: Criminals install a device that uses tape, wire or thread to trap the card in the machine. They will then seize the opportunity of you leaving and looking for help to steal your physical card. They may also employ a camera as well to steal your PIN.
• Logical Attacks: These tactics involve the exploitation or manipulation of the ATM’s computer system in order to make it dispense cash and intercept data from chip cards. Because ATMs are essentially just computers, they can be infected with malware just like a regular desktop or laptop computer.
• Social Engineering: This type of ATM fraud is perpetrated by humans. It usually involves earning your trust and scamming you out of the money you willingly withdrew or simply looking over your shoulder to memorize your card number and pin.

What can you do to protect yourself?

• Only use an ATM with the following safety features: well-lit, visible to passers-by, security camera, and ideally indoor.

• Look for signs of tampering before you insert your card: devices sticking out from behind the ATM or on its periphery; fake fronts covering the card slot, keypad, or entire machine face; tiny holes, cracks, and mismatched colors.

• Cover the keypad while you enter your PIN. Even if no one else is around, that will protect your PIN from the possibility of a camera.
• Save your ATM receipt to compare it with your bank account. If something doesn’t match, or you notice transactions you didn’t make, contact your bank immediately.

• If your card gets stuck in the ATM, suspend or cancel it immediately. With Town and Country Bank and Peoples Prosperity Bank’s mobile banking app, you can suspend your debit card or report it lost/stolen right from your smartphone. You can also call our Solution Center toll-free at 866-770-3100 for help.
• If the ATM doesn’t dispense cash, take photos of the ATM machine and record the exact date, time, and location. Call the bank the ATM belongs to immediately to report the problem. If the ATM belongs to a financial institution besides your own bank, call your bank or card issuer to dispute the debit to your account.
• Make a habit of only using in-network ATMs. One of the best ways to protect yourself from ATM fraud is to only use the surcharge-free ATMs in your bank’s network. That way, if something goes wrong, you only have to deal with one financial institution in regard to transactions on your account and the ATM itself.

As a Town and Country Bank or Peoples Prosperity Bank customer, you can use the ATMs at our locations in Springfield, Buffalo, Jacksonville, Lincoln, Decatur, Mt. Zion, Quincy, Edwardsville, and Fairview Heights. We also have stand-alone ATMs in Waverly, White Hall, Lincoln, and Jacksonville. You can also use the national MoneyPass ATM network surcharge-free.

Learn more about the Latest Online Security Topics

At Town and Country Bank and Peoples Prosperity Bank, we are serious about safeguarding your privacy and sensitive financial information. To stay up-to-date on the latest scams and cybersecurity issues, read all of our educational resources here. If you have a specific question about your account or personal information security, give us a call or visit one of our nearest locations.