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Top 5 ATM Fraud Types & How To Safeguard Yourself From It

Top 5 ATM Fraud Types & How To Safeguard Yourself From It

Undoubtedly, ATM machines have made a bunch of banking tasks like cash withdrawal, money transfer, and bill payments a lot easier. However, just like other stuff, it comes with a con. Even after following a number of precautions, there are high chances of getting into an ATM fraud. Skimmers can steal your PIN and withdraw money instantly from your account. Now the question comes, how to prevent yourself from ATM frauds and scams.

Here are some ATM fraud types and tips to safeguard from ATM fraud and identity theft activities.

Types of ATM Frauds

1. Card Shimming

A foreign device called ‘Shimming device’ is installed on the ATM machine to gather card data. It also captures magnetic strip data.

2. Card Skimming

Stealing your card data through card imitation give birth to card skimming. Two devices get used to capturing the data. One is placed at a card swiping place and the other is a hidden camera installed to capture PIN.

Also Read: 10 Personal Loan Scams Signs You Must Be Aware Of

3. Jamming of Keyboard

Swindlers jam important ATM buttons like entering and Cancel button to make the transaction unsuccessful. In such a case, the customer might leave the ATM for help and the criminal then enters the space to withdraw money.

4. Card Trapping

Card trapping includes making the card stuck in the cash dispenser. When the individual leaves the ATM, the fraudster steals the hard-earned money.

5. Phishing

Phishing scammers clone your card. The victims are mostly women and elderly people.

Also Read: 10 Online Fraud Prevention Tips To Trick Scammers And Protect Your Money

How To Protect Yourself From ATM Fraud?

1. Cover Your PIN Code

Always cover the keyboard while entering the PIN number. Avoid entering PIN if someone is standing near you. Don’t tell your PIN number to anyone if you find difficulty in withdrawing the money.

2. Check Balance Frequently

Check account balance once a week to ensure you are safe. If you got skimmed, then you can see changes in the amount. Don’t wait, just inform your financial provider.

3. Use Familiar ATMs

Avoid using ATM machines from suspicious places. For example, if you are in an unfamiliar place and you approach a nearby ATM and you find ATM is causing the swiping problem. In this case, immediately leave the ATM. Don’t use it.

4. Find Hidden Cameras

A visible camera is always available inside the ATM; however, the thief might install another camera to gather your card data. So, always check the ATM slots carefully.

5. Don’t Keep Huge Sum in One Account

You can keep a large sum of money in other bank accounts instead of just keeping it in one account. Even if the thief manages to steal your card data, only money in small quantities will be accessed. It can be reimbursed later on after you’ve informed your financial institution.

6. Pay Attention to ATM

If the ATM freezes or slows down or asks for entering PIN twice, then it’s tampered with. Just cancel everything and use a different ATM.

7. Account Alerts

All financial institutions provide Sign Up facility for keeping the consumer updated. If there’s anything irregular about your account, you will get informed via alerts.

Next time you approach an ATM for withdrawing money; follow these tips to safeguard yourself from ATM frauds.

Also Read: How Did Shivraj Singh Chouhan Get Over The Vyapam Scam Case 2009?

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Mostly found in cozy corners or near a cat. A mess of thoughts, wild hair and often lost. Dreaming about world tours and ice-creams. Buys five books a month and reads one.