Firoz.T.Totanawala The Bangalore Metro Reporter THE MACHINISED FRAUD THE STORY OF ATM FRAUDS

By Firoz.T.Totanawala 

The Bangalore Metro Reporter 

THE MACHINISED FRAUD THE STORY OF ATM FRAUDS 

 While ATM Machines have become common to the world, ATM frauds too have become common around the world. Everywhere there are innocent ATM users who suffer due to the fraudsters who turn out to be smarter over the negligence of the users. 

 We had carried an article in our last issue on ATM Fraud where in Rs. 38000/- were withdrawn from a persons account in a span of seven minutes from the same ATM where the victim made his withdrawal. The case was filed and the CCTV image from the Bank was awaited. 

 Then, after obtaining CCTV Images from Bank, Lokesh along with his relatives went to the ATM again and showed the images to security guard of the ATM. The security guard recognised the person in the image & told them that he has many accounts and often visits the ATM and also informed them the time of his visit. Lokesh & his group decided to wait. And the thief arrived in a Santro car. He stopped on the opposite 100feet road and came crossing the road without any suspicion. Like his daily job he went inside the ATM, then came out and waited for his hunt. One person then arrived at ATM and went inside for withdrawal. After he came out the thief immediately went inside and took a print out of the earlier person’s account’s balance which showed the balance of Rs. 17,500/-. Lokesh & group covered the ATM area and the thief realised this. Sensing that there may be some trouble he came out of the ATM and started running, but was out of luck this time. He was caught by the group and beaten up and dragged to Kamakshipalya police station. He admitted his crime and soon his family members approached to the police station and pleaded to Lokesh not to take any further action. They agreed to pay the amount and finally Lokesh decided to close the case and received his amount of Rs. 38,000 + 7,000 as compensation amounting to Rs. 45,000/-. The thief whose age was around 22 years was from an affluent family and is also working in finance department of a reputed company in Bangalore.

 THE TECHNIQUE OF FRAUDS 

 Ever wondered how ATM frauds take place? We have discovered from our sources and bring to you the most common manipulations undertaken by the fraudster in ATM frauds. Take a look and be careful and observant henceforth while using ATM’s. 

 The most common practice is fixing a duplicate key logging pad over the original plate and a magnetic strip reader on the card slot of the machine. Thus when one enters his pin code, it is entered on the duplicate logging pad and when one inserts his card in the slot, the magnesium strip reader records the codes of the card. 

 Then when a person leaves the ATM, the cheat removes back the additional logging key pad and the card strip and has the record of the card holder along with his pin. The strip can then be used as a card and the person can recover your password from the logging key pad. 

 Another common practice fraudsters follow is to insert a black colour x-ray film into the card insertion slot with edges folded so as to hold it on the slot. Then, when someone inserts the card it goes in but gets stuck in the inserted film strip. The person cannot also retrieve it as the film has sliced edges which do not allow the card to slip out and he thinks his card has been confiscated. 

 In such circumstance, the fraudsters turn up behaving as good Samaritans and offer to help. They ask you to enter your pin code and assure you that they have done it so on earlier occasions. But, when you enter your pin, the card still does not come out. They pretend to be trying hard to retrieve but fail. They then feel sorry for you and leave. Dejected, you also leave the ATM. Once you leave the area, they verify their safety and return to retrieve the card by pulling out the inserted filament. Now they not only have your card but also your pin code. 

 TIPS THAT MAY HELP YOU! 

 Be vigilant and observant in the ATM. As far as possible, use the same ATM for transactions. If there is any change in the surrounding, it will strike you easily. 

 Most commonly, the keyboards are set up within the body of the machines and not protruding above the base. If you find it protruding, beware yourself. The card slots are also within the body of the machines. If it is also extended than take caution. 

Check for any miniature camera that may capture you entering your pin code. Also shield your pin entering hand with another hand or paper or envelope. Better be cautious than be Sorry!