Are you aware of the risk associated with ATM cards?

Banking cards such as the ATM card has proven to be a favourable option for many individuals who want instant cash. However, like any other financial tool, this card also has its risks.

While banks have taken the effort and doing their bit to make card transactions safer, there are plenty of ways fraudsters can misuse the card. This being said, these individuals, over the last few years have been taking advantage of these risks and robbing customers from their savings. The only way a card holder can protect the card and the transactions that are made is by being alert and careful. To do so, an individual must be aware of the risks associated with the ATM card. Some of the common risks are as follows:

Keypad jamming fraud: As the name suggested, the keypad of the ATM is jammed. This fraudster will specifically jam the “enter” and “cancel” button through inserting a pin or blade at the edge. When a customer tries to complete or cancel a transaction, after entering the PIN code, it cannot be done as the required key will not function. At this stage, the customer may leave the ATM, thinking that the transaction will be cancelled. As soon as the customer exits the booth, the fraudster takes over the machine and removes the jammed obstacles, thus providing a free access to the keypad to complete the transaction. To avoid such a situation, ensure that the transaction is cancelled, through the timeout period. Each ATM machine comes with a timeout period, wherein, as soon as the transaction is initiated, it must be completed within a fixed period. If there is an inactive period of more than 30 seconds anywhere during the transaction, the transaction will automatically be cancelled.

Card swapping: This normally occurs at the point of purchase. In this stage, banks cards which also have the function as the ATM can be misused. When such a cardholder visits a merchant establishment or restaurant and uses this card for a transaction, the fraudster will note down the ATM pin being used. Later when the card is being handed back to the customer, the fraudster will switch out the card for a dummy card. With the original card and the PIN code, the fraudster can get easy access to the customer’s financial account and funds. The best way a customer must stay protected in this situation is by being aware of the card when it is being returned. Additionally, ensure that you get total privacy when you are typing in your PIN code.

Skimming: Over the last few months, skimming has become a popular option for fraudsters. These individuals place a skimming device on the card slot of the ATM machine which is embedded with a chip. When a customer feeds the ATM card into the machine, this skimming device will read the card and collect information pertaining to the account being accessed. In this case, customers have to be alert if the ATM machine is compromised. Alternatively, they must also keep an eye on their card statements to see if there are any unauthorised withdrawals.


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