How to Avoid ATM Scam or ATM Theft

Look around for hidden cameras or for film coming out of the card slot.

You see automatic teller machines everywhere. Convenient stores, fast-food chains, department stores, gas stations and even nail spas have machines inside. ATM theft is a big problem, though. Maybe you heard about the Arco gas station and Lunardi's Supermarket ATM scam incident in May 2008, when customers of both establishments were victims of identity theft. The card reader/scanner at the checkout counter was tampered with and customers' card and PIN codes were stolen. This is a type of card skimming, wherein a device is inserted into the card slot on an ATM to capture your card information. Be aware of some of the tricks and protect yourself from ATM scam or theft.

Difficulty:

Moderate

Instructions

Things You'll Need

• Extra care and awareness

1. Refrain from using your ATM/debit card when shopping. Use cash or credit card. If you have a check card, select "credit" instead of "debit." Selecting "credit" requires your signature instead of your PIN to authorize your purchase. A signature slows the transaction of money to two or three days, as opposed to one day when using a PIN. Major credit cards have 100 percent fraud protection, often after the first $50. With a debit card, you may have limited protection, depending on how soon you notify your bank about the fraud.

2. Change your pin regularly. This also applies to your email and online bank accounts as well. When you change PIN, do not use your birth date and digits taken from your telephone or Social Security number.

3. As much as possible, do not use nonbank machines, as the risk of ATM theft scams is higher than machines at your bank. Start going to one bank branch and use that ATM for all your future transactions. This way, you can get familiar with the machine (card slot or card reader) and its surroundings (number of security cameras and where they are located).

   Find out the phone number of the branch and its 24-hour service number and save the number in your cell phone.

4. Before you use an ATM machine, check for dubious devices like an extra video camera mounted to the ATM. This is a type of ATM scam in addition to skimming, where thieves mount a wireless video camera inside the ATM area so they can watch you as you enter your PIN.

   Check the card slot. Do you see a plastic strip or film sticking out? Is there anything glued to the card reader or cash dispenser?

5. If your card is stuck inside the card slot, do not leave the machine. Call the branch with your cell phone or the bank's 24-hour service number and report the incident.

   Also, never ever let a stranger help you retrieve your ATM card. If somebody comes near you and offers help, say no and make sure the person leaves you alone. In this type of ATM scam, the thieves insert a blocking device (a thin film inserted inside the card slot so that your card gets trapped inside). They come up to you and offer help. They ask you to enter your PIN a couple of times. They may also hold the cancel button while you enter your PIN. This is just their way to memorize your PIN. Once you leave the ATM area, they will come back and take the glued film out. They now have your ATM card, PIN and money.

6. Use your body or hand to shield the ATM keypad from anyone standing behind you or next to you as you enter your PIN. Do the same if you use your debit card at the supermarket or department stores. Don't let the store clerk and people behind or next to you watch you as
   you enter your PIN.

7. When you shop online, do not use your debit card, if possible. Also, take note that online shopping does not require you to enter your PIN.

8. When you receive an email from your bank, do not click on any link. If you are being asked to update any information, delete that email and open a new browser and type your bank's website yourself instead. It's best to delete your cache and cookies before going to your bank's website. When you're done checking your bank account, delete your cache and cookies again, even if you're using your own computer.

9. Make it a habit to check your account often. Check for any unauthorized transactions and at the same time see to it that the amount debited to your account is correct.

10. Report a stolen or lost ATM card immediately.

References

• Supermarket ATM/Card Reader Rigged With Illicit Scanner
• Snopes: ATM Camera
• Kiplinger: Debit or Credit: Which Card Is Safer?