Automatic teller machine (ATM) fraud involves capturing your debit card number and using it for unauthorized transactions. Because you need a personal identification number (PIN) to complete a debit card transaction, ATM fraud also includes the theft of your PIN. The criminal uses a device to steal your ATM card number, finds a way to obtain your PIN, and uses the card to obtain cash.
Liability for ATM fraud
One difference between ATM fraud and credit card fraud is the responsibility of the customer. In the United States, your liability for your loss when a fraudulent ATM transaction occurs depends on how quickly you report the problem. If you report an unauthorized transaction or the loss of your debit card before a transaction occurs, your liability is zero. If you report the problem within two days of receiving your statement, your liability is $ 50. Two to 50 days after receiving your statement, your liability is $ 500.
If you report a problem more than 60 days after receiving your statement, you’re out of luck. The 60-day reporting limit applies even if your card is in your possession.
Types of ATM fraud
Criminals are inventing more ways to separate you from your money all the time. Types of ATM fraud include:
Physical theft of your card;
Skimming, which is the theft of data from the magnetic stripe of your card using a portable device or a reader that connects to the outside or inside of an ATM, combined with the theft of your PIN through a camera, keyboard false or direct observation;
Theft of your card’s magnetic stripe and PIN data by causing your card to get stuck in the ATM’s card reader, which in turn will prompt the ATM to ask you to re-enter your PIN;
Stealing cash dispensed by the ATM using claws or traps to steal bills;
Creation of fake ATM cards using information stolen from banks’ computer systems.
Tips to Avoid ATM Fraud Before You Travel
Tell your bank or credit union where you are going before you travel. As part of this process, sign up to receive fraud protection alerts.
Choose a PIN that is not easily duplicated. Avoid easy combinations of numbers, such as 1234, 5555, and 1010.
Protect your ATM card and PIN like cash. Do not write your PIN.
Bring alternate payment methods, such as credit cards, in case your debit card is stolen or frozen.
Carry a list of phone numbers for the bank and credit card fraud department during your trip.
Tips to Avoid ATM Fraud During Your Trip
Carry your ATM card on a belt or money bag while traveling, not in your wallet or purse.
Check each ATM before using it. If you see a plastic device that appears to have been inserted into the card reader or see duplicate security cameras, use a different ATM.
Protect your PIN. Keep your hand or other object on the keyboard while you type your PIN so your movements cannot be filmed. If your debit card is scratched, a thief cannot use the information without your PIN.
If other people wait near the ATM, use your body to protect your actions and your hands. Even better, have your fellow travelers stand behind you to block the view of your keystrokes from observers.
Don’t let waiters, cashiers, or anyone else take your debit card from you. Have the card swiped in your presence, preferably for you. Make sure your card is swiped only once.
Check your bank balance on the go. Do this safely. Do not use a public computer or open wireless network to access bank balance information, and do not use a cell phone to request balance information.
Periodically check your bank’s text messages, email, and voicemail so you don’t miss out on fraud notification alerts.
What to do if you are a victim of ATM fraud
Call your bank immediately. Write down the time, date and purpose of your call and the name of the person you spoke to.
Follow up your phone call with a letter summarizing the details of your discussion.
In the United States, contact local police and / or the Secret Service if you believe you have been a victim of ATM fraud.
