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When ATMs became mainstream about 35 years ago, they
changed how Americans banked. Gone were the days of waiting in line
to withdraw money. If you wanted cash, all you had to do was swipe
a one-color card and punch in a few numbers.
These days, ATM cards are multicolored and can be
used for debit or credit transactions. As automated teller machines
have evolved, though, so have criminals. A 2005 TowerGroup report
says one in 15,600 ATM and point-of-sale debit transactions is fraudulent.
"If you're using an ATM, you need to assume that
you're being watched, and if you do something stupid that person
is there to take advantage of it," says Frank Sorrentino III,
president of the North Jersey Community Bank.
Here are nine steps to help you avoid being an ATM fraud victim.
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9 ways to be safe at an ATM: |
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1. Look for suspicious
attachments. Criminals often capture information through
"ATM skimming," using devices that steal magnetic strip
information. The Secret Service estimates that fraud losses from
skimming are about $350,000 a day in the United States.
At a glance, the skimmer looks just like a regular
ATM slot, but it's an attachment that captures ATM card numbers.
If you look closely, you may notice the attachment slightly protrudes
from the machine and may not be parallel with the inherent grooves.
Sometimes, the equipment will even cut off the ATM manufacturer's
text.
The skimmer will not obtain personal identification
numbers, however. To get that, fraudsters place hidden cameras facing
the ATM screen. In Texas, police officials discovered wireless cameras
inside innocent-looking pamphlet holders pointing directly toward
the keys.
There might even be a sign that says something like:
"If for any reason the ATM malfunctions, please input your
PIN three times and press cancel."
There's also the helpful bystander (the criminal)
who may be standing by to kindly inform you the machine has had
problems and offer to help.
2. Minimize your time at the ATM. The more time you spend at the ATM, the more vulnerable you are. If you need to update your records after a transaction, "do it at home or the office, but not while at the ATM," says Tracy Kitten, editor of ATMmarketplace.com, an online trade publication. "If you're making a deposit, don't sign your checks at the ATM."
3. Make smart deposits. Some ATMs allow you to directly deposit checks and cash into your accounts without stuffing envelopes. The receipts have the check images on them, and the funds usually are immediately available.
By eliminating several ATM deposit steps, this new
technology has tremendously cut back on ATM fraud, says Brian Bailey,
vice president of marketing and product management for the NCR Corp.,
an ATM manufacturer.
"We have several options available to banks if they want to hide or not print personal details, like account numbers, on receipts," Bailey says.
As for the envelope-based deposits, make sure they go through.
"Sometimes people carelessly shove (the envelopes)
in the window. If it gets jammed and it doesn't fully go into the
machine, the next person can walk up and take it out," says
Laura Criscione, chief financial officer of North Jersey Community
Bank.
After you've made the ATM deposit, compare your records with the account statements or online banking records.
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