ATM Card Reader : Protect Youself From Fraud

The ATM card reader is a small device that actually “reads” the numbers on your card.  From there, the information is sent through a special terminal to the bank or credit union to determine if money is available for the pending purchase or payment.  As an example, if you went to the grocery store and had an ATM card with debit capabilities, you would swipe the card with an ATM reader.  From there, the information would be sent instantly to the bank and if funds were available for the groceries, the transaction would go through but if not, the transaction would be

The ATM card reader is a small device that actually “reads” the numbers on your card.  From there, the information is sent through a special terminal to the bank or credit union to determine if money is available for the pending purchase or payment.  As an example, if you went to the grocery store and had an ATM card with debit capabilities, you would swipe the card with an ATM reader.  From there, the information would be sent instantly to the bank and if funds were available for the groceries, the transaction would go through but if not, the transaction would be denied.

Now, an ATM card reader would also be considered one associated with an ATM machine.  In this case, you would insert the ATM card to withdraw money, make a deposit, or check your checking and/or savings account balance.  While an ATM card reader is an important device for using a card such as this, unfortunately, there has been an increase in fraud.  As a consumer with an ATM card, you should understand the various schemes that bad people use.

Skimming

For this, criminals use a small device that can capture all the information from your card using the magnetic strip on the back.  To accomplish this, the device is affixed near or on top of the ATM card reader.  Banks and credit unions check security to provide customers protection but if at any time you were at a remote ATM or in another country and you see something attached to the machine, beware.[br]

Most skimming devices are fitted to an area where they are difficult to see.  However, the easiest method for detecting a device that can capture information using an ATM card reader would have a flashing lead light.  Therefore, if you spot something that appears out of place and it has a small flashing light, there is a good chance it could be a skimming device.

PIN Capturing

This fraud is also used with an ATM card reader, which works by the criminal attaching a tiny camera to the ATM.  Although ATMs have built-in cameras as a part of security, this would be an additional camera.  In this case, the camera captures the user’s PIN.  Typically, skimming and PIN capturing are used together, which gives the criminal complete access to a bank or credit card account.

Again, ATMs are checked for security but anything attached near or on the light diffuser area, speaker area, side fascia, the keyboard area, or the entry slot of the ATM card reader.  If you see this, report it.  Again, if you see something that appears out of place, by looking closely, you could actually see the camera.  Remember, the pin hole for the camera would be very small but detectable.

With both of these schemes involving the ATM card reader, the more information you have the easier it is to protect yourself and your accounts.  The following are real statistics specific to fraud involving an ATM card reader, again, things you should know.

·    Both skimming and PIN capturing devices are usually attached by criminals during the late night or early morning hours when no one is around

·    These devices are left attached for only a couple of hours before being removed
 
·    Typically, both a skimming and PIN capturing device is attached at the same time

·    Criminals will remain close to the ATM so after several people drive off, they can approach the ATM card reader, remove the devices, and then retrieve the information.  At that point, they access checking and savings accounts and take the money.

·    To protect yourself, always choose a reputable bank or credit union and if visiting an ATM in a remote area, at another financial institution, or in another country, pay attention to the entry slot area of the ATM card reader, as well as areas next to or above the slot.  Usually, there would be noticeable scratches, tape residue, or some other indicator that the ATM card reader had been tampered with and in this case, DO NOT use the machine and report it to the bank or credit union immediately.

·    If you have used an ATM card reader and then notice something suspicious, contact your bank or credit union immediately to let them know of your concerns.  That way, if money were to start being withdrawn, the bank would be aware and your money would be protected.