Last fall, two people were charged in U.S. federal court in New York with using stolen bank account information to defraud two banks of more than $1 million.
Their scheme involved installing surreptitious surveillance equipment on New York City ATMs that allowed them to record customers’ account information and PINs, create their own bank cards, and steal from customer accounts.
What these two did is called “ATM skimming”óbasically placing an electronic device on an ATM that scoops information from a bank card’s magnetic strip whenever a customer uses the machine. ATM skimming is a growing criminal activity that some experts believe costs U.S. banks hundreds of millions of dollars annually.
How to Avoid being Skimmed:
– Inspect the ATM, gas pump, or credit card reader before using it…be suspicious if you see anything loose, crooked, or damaged, or if you notice scratches or adhesive/tape residue.
– When entering your PIN, block the keypad with your other hand to prevent possible hidden cameras from recording your number.
– If possible, use an ATM at an inside location (less access for criminals to install skimmers).
– Be careful of ATMs in tourist areas…they are a popular target of skimmers.
– If your card isn’t returned after the transaction or after hitting “cancel,” immediately contact the financial institution that issued the card.
(Information from www.fbi.gov)
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