Protecting your hard-earned cash from ATM scams is essential for everyone, regardless of their financial situation. Whether you’re financially stable or working towards breaking the cycle of living paycheck-to-paycheck, falling victim to ATM scams can have serious financial consequences that can disrupt your financial goals.
Unfortunately, many people are unaware of the existence of these scams and the potential for financial losses they pose. It’s crucial to stay informed and vigilant to avoid becoming a victim and suffering financial setbacks.
Before visiting an ATM, it is important to educate yourself on the common tactics used by scammers and understand how to protect yourself from their fraudulent schemes.
So here are 5 most popular ATM scams you should be aware of.
1. Skimming
ATM users face the greatest risk from thieves, and the danger doesn’t always come in the conventional form of physical robbery. In recent times, criminals have employed a sophisticated technology known as magnetic readers, which they discreetly attach to the exterior of ATMs at the card-swiping area. This technique poses a significant threat to the security of your bank account balance.
When you swipe your card to perform a transaction, the magnetic reader cunningly captures the data encoded on your card’s magnetic strip, including the crucial PIN you enter.
The thieves responsible for the device then return later to retrieve it, along with the stored information. Armed with this data, they can craft a duplicate card that enables unauthorized access to your bank account, putting your funds at risk.
Detecting these fraudulent devices is a hard task, as skimmers are designed to blend seamlessly with the ATM’s appearance. This stealthiness makes it nearly impossible for users to know whether a device is genuine or a fake.
2. Glue & tap
Another fraudulent technique employed by scammers involves placing glue on the ATM card reader, rendering the traditional card swipe ineffective. Consequently, individuals with chip-enabled cards are forced to tap their cards on the reader to gain access to the ATM’s functionalities.
Upon tapping the card, users can proceed with their intended transactions, such as withdrawing funds or utilizing other ATM services. However, a significant concern arises due to the nature of the tap function. The connection between the card and the ATM remains open for a few minutes, creating a window of opportunity for malicious actions.
This vulnerability means that someone positioned behind you at the ATM can exploit the open connection to carry out unauthorized transactions. Unfortunately, these transactions are charged to your account, leaving you responsible for the financial consequences.
In essence, by utilizing the tap feature, you inadvertently leave the gateway open for someone else to access and misuse your account.
3. Blocking devices
An additional scam tactic involves the use of a blocking device on the card slot of an ATM. This deceptive method relies on a two-step process to capture both the victim’s card and their PIN, allowing the scammer to gain unauthorized access to the victim’s account.
When an unsuspecting individual approaches the compromised ATM, they insert their card into the card slot and proceed to enter their PIN as usual. But there is an external device attached to the card slot that blocks the card from being properly inserted. However, it creates an illusion that the ATM has confiscated the card.
Meanwhile, a fraudster positioned nearby closely observes the victim’s actions, discreetly watching as the victim enters their PIN. By doing so, the scammer gains valuable information necessary to exploit the victim’s account.
Believing their card has been confiscated, the victim may then decide to go inside the bank or contact customer service to report the issue. Seizing this opportunity, the thief discreetly retrieves the blocking device along with the victim’s card. Armed with both the card and knowledge of the PIN, the scammer can now freely use the stolen information to conduct unauthorized transactions.
4. Counterfeit ATM
Although it may appear unbelievable or too outlandish to be true, the scam involving fake ATMs is a real and concerning threat. In this deceptive scheme, the fraudulent machines are specifically designed to collect sensitive information from unsuspecting users. While this type of scam may not be widespread in present times, it is essential to exercise caution and disregard any ATM that raises suspicions.
The primary objective of these counterfeit ATMs is to gather valuable personal and financial data from individuals. The scammers behind these machines aim to deceive users into inputting their sensitive information, such as their card details and PINs.
However, it is important to note that these fabricated ATMs do not contain any actual money. Once the user provides their information, an error message typically appears, indicating a malfunction or technical issue.
They retrieve their cards and proceed with their day, completely unaware that their financial information has just been stolen by the scammers.
5. Counterfeit pin pads
Yet another potential risk to be aware of is the use of fake PIN pads by criminals. Similar to the tactic of replacing the entire front of an ATM, fraudsters can also target only the PIN pad itself. They accomplish this by substituting the legitimate PIN pad with a counterfeit version, which may seamlessly fit over the original device in certain instances.
The alarming aspect of this scam is that users remain completely unaware that they are interacting with a fake PIN pad. It can be incredibly challenging to detect any differences or discrepancies between the genuine and counterfeit devices.
The visual similarity and functionality of the fake PIN pad are carefully designed to mimic the original, making it nearly impossible for unsuspecting users to identify the substitution
In these situations, users enter their PIN believing that they are securely authenticating their transactions. However, the information entered is intercepted and collected by the criminal, granting them access to the victim’s sensitive data and potentially compromising their financial security.
