ATM Frauds- Know how you can protect yourself

The fraudster jams the "cancel" and "Enter" keys with paste or by embeddings a stick or blades at the key’s edge.

Created On: Oct 27, 2016 12:46 ISTModified On: Nov 1, 2016 15:00 IST


Recent circular of RBI issued to banks for cyber attack which recently caused crores of rupee loss to the customers, is significant in the backdrop of recent debit cards scam in India. In order to prevent the loss and secure our cards from the fraudsters, we must know how these fraudsters actually work, and what are the different methods they use. Following are some of the ATM and Point of sale fraud list which will help you to understand these activities:

Keypad sticking

The fraudster jams the "cancel" and "Enter" keys with paste or by embeddings a stick or blades at the key’s edge. A client attempting to press the 'Enter/OK' key in the wake of entering the PIN, does not succeed, and thinks the machine is not working. Then trying to "Cancel" the transaction falls flat also. The events followed by once the customer leave ATM which is immediately replaced by the fraudster.

Any exchange at ATM remains active for around 30 seconds (20 seconds now and again) and by removing the paste or stick from the "Enter" key, they proceed to withdrawal of amount. The misfortune to the cardholder is, in any case, restricted only one withdrawals, without swiping the card again and re-entering the PIN.

Judicious exhortation: don't look for the assistance of an outsider to pull back money, and don't leave the ATM box until the exchange has been wiped out. Banks don't assume liability for such a fake, which they put down to carelessness with respect to the cardholder.

CA eBook

Card swapping

Whenever a client uses his debit card at a merchant point, the fraudster (who could be a fuel pump worker or an eatery waiter, and so on.) will make a note of the PIN that is entered in and, while giving back the card, swap it with an indistinguishable duplicate card from a store of a few cards he keeps. With both card and PIN, the fraudster can then pull back money until the cardholder can hinder the card.

Banks encourage clients to ensure their card is always in sight, to check in the event that it belongs originally to them only when an orderly hands it back, and to not request that he punch in the PIN at the transaction point terminal. In instances of card swapping misrepresentation as well, banks don't acknowledge obligation.


This sort of misrepresentation is more complex. A little skimming gadget is planted in the ATM's debit card space, which can read the data on the card's magnetic tape. The data, once replicated, can be duplicated on any card, which can be in this manner used to pull back money. The client's PIN is caught by a little camera that the fraudster introduces in the ATM stand. Banks by and large take the risk for skimming cheats and make good the loss of customer.

In any case, the client must block the card after the primary case of abuse.


Take Weekly Tests on app for exam prep and compete with others. Download Current Affairs and GK app

एग्जाम की तैयारी के लिए ऐप पर वीकली टेस्ट लें और दूसरों के साथ प्रतिस्पर्धा करें। डाउनलोड करें करेंट अफेयर्स ऐप

Comment ()

Post Comment

5 + 9 =