A suspect ATM can skim off your money
Avoid walking into the trap laid by a skimmer. If the card reader protrudes or the keypad is covered by a thin film, do not use the machine
A Kolkata-based gang recently cloned a large number of ATM cards. More than 300 people are reported to have lost money to them. While the modus operandi of the fraud, popularly known as skimming, is not new, such frauds continue to occur at regular intervals.
A device called a skimmer is installed in the ATM’s card reader slot. When the card is inserted, it captures the card details from the magnetic strip at the back. A camera installed somewhere above the keypad captures the ATM pin. These details are then used either to clone a card, which is used to withdraw money from ATMs, or the details are used to shop online.
Users should avoid using machines that do not have a guard. “About five years ago, every ATM machine had a guard. Nowadays many don't. These are the machines that are likely to be tampered with,” said Mukul Shrivastava, partner, forensic and integrity services, EY India.
Observe the ATM carefully before using it. “Does the card reader seem to protrude, or does it seem loose or wobbly? Give the card reader a gentle tug to see if a device comes off. Also, if you detect a thin film over the keypad, it could be meant to capture your keystrokes. Avoid using such machines,” said Radha Rama Dorai, managing director-ATM & Allied Services, FIS, a provider of banking and payments technology. When feeding the PIN into the ATM keypad, cover the keypad with your free hand or any object so that no camera is able to record your keystrokes.
Fraudsters also install a box on top of the money-dispensing slot. The customer hears the machine dispensing cash, but doesn’t receive any. “The customer gets the impression that the ATM did not dispense money. As soon as he leaves, the fraudster goes in and collects the cash,” said Rustom Irani, chief executive officer, cash business, Hitachi Payment Services. In case you don’t receive cash, check the dispensing slot to see if there’s any external installation, suggests Irani.
All bank customers should enrol for their bank’s SMS service so that they receive real-time alerts about fraudulent withdrawals. Some banks have introduced a feature wherein customers can ‘lock’ the card or set limits on how much can be spent. Use these services.
The Reserve Bank of India (RBI) has asked banks to install antiskimming devices in ATMs. “These are electronic devices with sensors fitted inside the card slot. They detect any external installation in the card slot and shut down the machine,” says Irani. ATM manufacturers now offer this option with new ATM machines. For old ones, banks are evaluating anti-skimming devices from different manufacturers.
If your card does get compromised, call the bank and get it blocked. This will prevent further withdrawals. Early notification will also help you get compensated if it is established that the breach did not occur due to your fault (see table). Next, file a first information report (FIR) at a nearby police station.
The RBI’s circular dated December 14, 2017, clearly defined liability in the case of a fraud. “Broadly, if the fraud did not happen due to the customer's negligence, then his liability is zero. If the bank is at fault, it will be liable. The interesting part is that even when the liability is neither of the bank nor of the customer, even then the latter cannot be penalised for a loss so long as he informs the bank early,” says Shrivastava. As long as you have not lost or inadvertently shared your PIN and card, you cannot be held liable.