Know your ATM card and the various frauds related to it

It’s a plastic world we live in. The proliferation of plastic money everywhere, in the form of debit and credit cards, means that the concept of paper money is soon becoming obsolete. Swiping a card seems to have become almost a natural instinct.

While swiping your debit card or using it to withdraw cash from an ATM is convenient, it also means that there are certain dangers that arrive with it. Cybercriminals are looking for every opportunity to strike and that means you need to be as vigilant with your ATM card, as you would be if you were carrying a large amount of cash. In fact, perhaps even more vigilant, because if a criminal manages to use your card to gain access to your cash reserves, it will take them hardly two minutes to wipe out your entire life savings!

The Key Components of Your ATM Card

For that, it’s important to take out your card and understand all of its components.

The Name of Your Bank – Usually showcased on top of the card and identifies which bank has issued the card.

Card Number – Written in a large size on the center of the front of the card, this is probably the most important part of your ATM card. It is 16 digits long and is linked to your bank account. The first 6 digits are your Bank’s Identification Number and the rest 10 digits are the Unique Account Number of the cardholder. Be very careful about how you use this number – in many ways, it is your banking identity and you should not write it down or tell too many people about it

Cardholder’s name – Your card should have your name on it so that there is further proof it is not being used unauthorized.

Chip – Most modern ATM cards use it and it adds an extra layer of security to your transaction by adding a single-use code to every transaction.

The expiration date provides the date on which the card expires while your payment network logo (Visa or MasterCard) to know what card you have

Magnetic stripes at the back of a card are extremely vital as they contain information about you and your card which can be read by card readers. This magnetic strip is also key to your banking identity and unscrupulous criminals can duplicate it to create another version of your card.

Security codes are required when shopping online as an additional layer of protection. It is a three-digit unique number which is needed to be inputted in. Finally, there is a signature panel as well where cards need to be signed.

The Various Frauds Linked to ATM Cards

Now that we have a good understanding of the different components of our ATM cards, it’s also important to know the different kinds of frauds associated with them:

Skimming

Criminals mostly install an unobtrusive foreign device on an ATM, right near the card slot. This device copies the details of the cards entered and hence makes counterfeits. The remedy? Be extra-cautious and check for foreign devices before putting in your card at an ATM. If in doubt, exit the ATM and use another one.

Cash Trapping

The cash will be trapped inside the machine and once a frustrated customer leaves, the criminal will come back to collect it. This is why Indian ATMs nowadays give a warning at the end of the transaction to collect your cash.

Eavesdropping and pretending to help

This is a type of social engineering fraud and it basically involves criminals pretending to be a good Samaritan and trying to help a customer. However, amidst their smiles and help, they quickly memorize the number and the PIN and use it to create havoc.

It is important to always employ constant vigilance when using ATM cards, whether to withdraw cash or transact online. After all, they are an integral part of our financial identities nowadays and cause great harm if they fall into the wrong hands.

Phishing Scams

Phishing scams are a common tactic used by ATM fraudsters to trick users into revealing their ATM card details or PIN. These scams typically involve fraudulent emails, text messages, or phone calls claiming to be from your bank or a legitimate organization. The messages often create a sense of urgency, prompting you to click on a link or provide sensitive information to resolve a supposed issue with your account.

Card Cloning

ATM card cloning involves creating a duplicate of your ATM card using stolen card data. Fraudsters often obtain this data by installing skimming devices on ATMs or point-of-sale terminals. These devices capture your card information and PIN when you insert your card or enter your PIN. Once the data is obtained, criminals can create a cloned card and use it to withdraw money or make fraudulent transactions, resulting in debit card frauds.

Data Breaches

Data breaches at banks, retailers, or payment processors can also lead to ATM fraud. When these institutions experience a security breach, sensitive customer data, including ATM card numbers and PINs, can be compromised. Cybercriminals can then use this stolen information to create counterfeit cards or conduct unauthorized transactions.

Steps to Protect Yourself from ATM Card Fraud

To safeguard your ATM card and prevent ATM machine fraud, consider the following steps.

Monitor Account Activity Regularly

One of the most effective ways to detect ATM fraud early is to regularly monitor your account activity. Make it a habit to review your bank statements and transaction history frequently. Look for any suspicious or unauthorized transactions, no matter how small. If you notice any discrepancies, contact your bank immediately to report the issue and take necessary actions, such as freezing your card or disputing the transactions.

Set Up Alerts for Transactions

Many banks offer the option to set up alerts for ATM and card transactions. By enabling SMS or email alerts, you can receive real-time notifications whenever a transaction is made using your card. This allows you to quickly identify any unauthorized activity and take prompt action. If you receive an alert for a transaction you didn’t make, contact your bank immediately to report the ATM fraud and block your card.

Use ATMs in Secure Locations

When using ATMs, always choose machines located in well-lit, secure areas. Avoid using ATMs in isolated or poorly lit locations, as these are more vulnerable to skimming devices and ATM machine scams. Whenever possible, use ATMs inside banks or reputable establishments, as they are generally better monitored and maintained. Before inserting your card, examine the ATM for any signs of tampering, such as loose or misaligned components, or any suspicious devices attached to the card reader or keypad.

What to Do If You Fall Victim to ATM Fraud

If you suspect you’ve fallen victim to ATM cheating or ATM cash out scam, it’s crucial to act quickly to minimize the potential damage. Here are the steps you should take:

Notify your bank about the suspected fraud and request them to block your ATM card to prevent further unauthorized transactions.

Report the incident to your local law enforcement agency. Provide them with any relevant information, such as the location of the ATM, the date and time of the fraudulent transaction, and any evidence you may have.

Carefully review your bank statements and identify any unauthorized transactions. Make a list of these transactions to provide to your bank and the authorities.

Work with your bank to dispute any fraudulent charges and request a refund. Most banks have policies in place to protect customers from fraudulent activities.

Once your card is blocked, request a new ATM card and PIN from your bank. Avoid using easily guessable PINs, such as birthdays or sequential numbers.

Conclusion

ATM fraud poses a significant threat to our financial security, with ATM fraudsters employing various tactics to steal card information and funds. If you do fall victim to ATM fraud, act quickly by contacting your bank, filing a police report, and disputing any fraudulent charges. Stay vigilant and adopt best practices to safeguard your ATM card and financial well-being.

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