ATM fraud: How 12 people lost Rs 10 lakh and what you can do to stay safe

ATM fraud: How 12 people lost Rs 10 lakh and what you can do to stay safe

You might be giving away your banking details unknowingly to a complete stranger when you walk into any nearest ATM to withdraw cash. This is how 12 people lost at least Rs 10 lakh in the past week when they had swiped their cards in ATMs near Laxmi Nagar in Delhi. This was possible through ATM card skimming which has been a major pain point for banks recently.

The country’s largest nationalised bank, State Bank of India (SBI), had lowered the ATM cash withdrawal limit to Rs 20,000 a day, from the previous Rs 40,000 to tackle ATM card skimming fraud. Also, SBI recently introduced cardless cash withdrawal service through its Yono internet banking app. Here is everything you must know about ATM card skimming and how can you prevent it.

  1. At least 12 people have come forward to complain that they lost money after using ATMs near Laxmi Nagar in Delhi last week
  2. Most of the victims reportedly used a Punjab National Bank (PNB) ATM and suspect that a card skimmer was fitted in the ATM there
  3. Soon after using the ATM, the victims complained that money was withdrawn from their accounts from ATMs in Noida and east Delhi without their knowledge
  4. The money was withdrawn from accounts of 12 people at one go before the cards could be blocked
  5. ATM skimming is basically stealing of users’ ATM card information
  6. Criminals install small devices called skimmers into the card slot of ATM machines
  7. These skimmers capture the information stored on the magnetic strip of an ATM card
  8. A camera installed somewhere above the keypad captures the ATM pin as the user enters it
  9. These details are then used to clone cards to withdraw cash from other ATMs or do online shopping
  10. Tip to prevent fraud: Avoid using unguarded ATM kiosks. Always prefer using an ATM with a security guard inside
  11. Tip to prevent ATM fraud: Cover your ATM keypad whenever you enter your ATM pin. This way the hidden camera will not be able to record your ATM card pin
  12. Tip to prevent ATM fraud: Opt for digital payments whenever possible. Else, if your bank provides app-based cardless ATM cash withdrawal service, like SBI Yono, got for it
  13. Tip to prevent ATM fraud: With benefits of internet and mobile banking it is always advisable to keep lesser amount in a particular bank account that is linked to a debit card you frequently use at ATMs

Source:- gadgetsnow