ATM (Cash Machine) Fraud

Deirdre · 10-12-2007

The level of ATM (Automated Teller Machine) fraud has been on the increase lately.

Members of the public are usually unaware that this crime is taking place as it is not discovered until after the event has occurred and people receive their bank statements or check their balance on another machine and notice that money has been taken.

A custom built skimming device is fitted over the existing ATM. This cover is built to look exactly like a normal ATM.

The skimming device has a memory chip and copies the details that are on the payment card. However the PIN number cannot be captured as this number is not contained on the card. To overcome this problem, the culprits place a small camera over the key pad so that they can film the customer entering their PIN. The camera is usually concealed inside a metal bar which is similar in colour to the frame of the ATM. This is fitted to the upper part of the machine and a small hole drilled in the strip allows the camera lens to look downwards onto the key pad.
Sometimes a video camera will be used, which transmits images to a culprit situated near by, probably in a parked car.

Gang members usually stay within view of the ATM during the operation. They usually leave the skimming device in place for about 25 minutes and remove it when finished.
Gangs operate in groups or three to five persons, or even more. Some of these pretend to 'queue' behind the first culprit when he/she is fixing and removing the skimming device. This is to block the view of genuine persons in a queue.
The gang then transfer the skimmed data to a counterfeit card or just a simple white piece of plastic with a magnetic strip on it. These cards are then used to withdraw monies from other ATM's without the customer's knowledge.