Criminals are scoring top marks for their devious ways. Automatic teller machine (ATM) fraud involving close personal contact tends to be opportunistic and ranges from serious violent crime to carefully orchestrated plans to defraud victims. Know the facts so you can avoid becoming another unwitting victim.
Jammed card readers
Tampering with an ATM card reader so that your card jams in the slot is one of the simplest and most passive methods used. You become aware of it only once you have finished your transaction and realise that your card cannot be retrieved.
By this stage it is quite likely that the fraudsters have seen your personal identification number (PIN) while you were entering it-either over your shoulder, with a hidden camera or even binoculars. As soon as you leave the ATM to look for assistance, the fraudsters move in, remove the card and clear out your account.
Always be cautious when entering your PIN – try to shield the keypad with your body so no one can see it.
Card swapping
The success of this method rests on direct interaction and can occur in one of two ways.
In the first the fraudsters may tamper with the ATM card reader so your card gets jammed. Someone will then approach you in an attempt to offer ”assistance”.
Typically, they will ask for your PIN while they ”attempt” the transaction for you when, in fact, they swap your card with a similar one. They soon leave with both your card and your PIN.
If you did not disclose your PIN, the fraudsters will try to obtain it using one of the methods already mentioned above.
The other way involves creating a deliberate distraction before swapping cards. The fraudsters will try to record your PIN when you start transacting and then create a distraction so you take your eyes off the ATM.
For instance, one or two strangers will stand close to you and start an argument with each other or even bother you to use the situation to their advantage. If you feel unsafe, trust your instincts and leave or contact the bank immediately. Never accept help from strangers, because they could have ulterior motives.
Card skimming
Statistically, card skimming is now the preferred method of ATM fraud, although it is not only limited to the ATM environment.
Skimming was once solely limited to credit cards, but the reality is that it now also includes debit cards. Skimmers are electronic card readers that gather the encoded information on the magnetic strip of a debit or credit card.
These illegal devices are mostly small, portable units concealed in someone’s pocket, which are used when no one is looking.
Skimming devices can also be connected to a card machine or fixed to ATMs and disguised as card readers, so you need to be on your guard.
Once a card has been skimmed, the information is used to make a duplicate bank card.
All the fraudsters then need is your PIN. Once they have your card and PIN, they can start clearing your account.
Shop with your debit card
Having cash in your pocket is important, but ask yourself if you really need to carry large amounts, or if you even need to draw cash. Most retailers and small businesses allow you to make cashless payments for goods or services.
Shopping with your debit card is just like paying cash, only much safer. It also costs less than a normal ATM cash withdrawal, which has resulted in a significant increase in debit card usage.
One bank has even gone so far as to offer clients a gold debit card, which allows them to make purchases without paying bank
fees, regardless of the value of the transaction.
If you make point-of-sale purchases at retailers using your debit card, remember to keep your PIN safe from prying eyes.
Safety tips:
- If you suspect that you have been a victim of ATM or card fraud, call your bank immediately and stop your card. You can always have your card reissued with a new PIN. Be safe instead of taking a chance.
- Shop with your debit card instead of drawing cash.
- Shield the keypad with your hand or body when entering your PIN so nobody sees it.
- Memorise your card PIN and never disclose it to anyone. Without your PIN, stolen or duplicated debit cards are useless.
- Alert the bank, security staff or the police if you notice suspicious behaviour near ATMs.
- Never let your bank card out of sight during transactions.
- Report jammed, lost or stolen cards immediately.
Yolande van Rensburg is head of corporate affairs and communication at Capitec Bank.