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Fraud Prevention (for Consumers)
Most ATM frauds happen due to the negligence of
customers in using, and more importantly, negligence of banks in educating
their customers about the matters that should be taken care of while at an
ATM. The number of ATM frauds in India is more in regard to negligence of
the Personal Identification Number (PIN), than by sophisticated crimes like
skimming. Banks need to develop a fraud policy – the policy should be
written and distributed to all employees, borrowers and depositors.
The most important aspect for reducing ATM related fraud
is to educate the customer. Here is a compiled list of guidelines to help
your customer from being an ATM fraud victim:
Look for suspicious attachments. Criminals often
capture information through ATM skimming – using devices that steal
magnetic strip information. At a glance, the skimmer looks just like a
regular ATM slot, but it‘s an attachment that captures ATM card numbers.
To spot one, the attachment slightly protrudes from the machine and may
not be parallel with the inherent grooves. Sometimes, the equipment will
even cut off the printed labels on the ATM. The skimmer will not obtain
PIN numbers, however. To get that, fraudsters place hidden cameras
facing the ATM screen. 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. If you do not feel safe at any time, press the ATM
cancel button, remove your card and leave the area immediately.
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, one is advised do it at home or
office, but not while at the ATM. Even when depositing a cheque at the
ATM, on should not make/sign the cheque at the ATM. After the
transaction, if you think you are being followed, go to an area with a
lot of people and call the police.
Make smart deposits. Some ATMs allow you to
directly deposit checks and cash into your accounts without stuffing
envelopes. As for the envelope-based deposits, make sure they go through
– if it gets jammed and it doesn‘t fully go into the machine, the next
person can walk up and take it out. After having made the ATM deposit,
compare your records with the account statements or online banking
records.
Avoid using ATMs at night. While robberies are less
prevalent than fraud at ATMs, there‘s still risk, especially at night.
And if you have to use an ATM late at night, use one at a bank itself.
Financial institutions have to follow certain guidelines and regulations
as far as lighting is concerned. They also have cameras on all the ATMs.
Be aware of your surroundings. Before you slide
your card into the machine, look around if the area appears safe or if
there is anybody who can see the PIN pad. Having the card ready before
entering is ATM premises is better than searching for it though the
purse at the machine. While you are fumbling with a wallet or purse, you
are easy prey for a thief. A good rule of thumb is to always shield your
card, no matter how comfortable you are with the place. If your card is
stuck inside an ATM, be suspicious of anyone offering help. Immediately
report the incident to the bank
Keep your receipts and card before leaving the
place. Before you leave the machine, make sure you have your card. Also,
do not leave your receipt behind at the ATM. Keep copies of your
receipts and compare them with your monthly statement. As much as 83
percent of all ATM and debit fraud results from stolen cards and
discarded receipts bearing card/account numbers.
Memorize your PIN. Many cardholders walk up to an
ATM and pull out a piece of paper containing four numbers. If you are
not sure, make it a point that you don’t keep the PIN and ATM card
together in your wallet – If someone comes up and hits you over the
head, they‘re going to have all your information right there. But
ideally, one should never write down the PIN number – it should be
memorised.
Never disclose your PIN to anyone. Even bank
officials do not require an ATM PIN – neither to process an issue
involving ATMs, nor to remove a card stuck in the machine. Always change
the PIN as soon as you receive it. Preferably, change it every quarter.
This habit will also help remind you of changing the PIN if you find a
suspicious activity.
Never provide information via e-mail. About 3.5
percent of ATM and point-of-sale debit fraud originates from ‘phishing’
e-mails. Phishers attempt to obtain information about your bank account
by asking for your PIN, account number and personal information. Much
like ATM skimming equipment, these e-mails appear legitimate. If you
click on a link, you will be sent to a Web site that looks exactly like
the one the phishers are imitating. Reputable companies do not ask for
information through e-mail. If you receive one of these e-mails, inform
the organization. And if you believe your accounts have been
compromised, inform your financial institution and cancel the account.
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