ATM Fraud 101

We constantly use our debit cards to take money out of the ATMs that are everywhere these days, but did you know that doing so could cost you a lot of money? These machines offer thieves the opportunity to rob banks without ever going anywhere near them. These new sophisticated criminals aren't the kind who wait for you to come from the ATM and jump you, they steal your information and then your cash, without you even knowing!

There are several different ways that you can be scammed with ATMs. One method is a telescopic camera which records keypad movements. If the thief gets his hands on your card, he can use the PIN that is recorded and empty out your account. And there are ways for them to get your card information as well, without touching your card.

Some ATMs have what are called "skimmers" installed into them and they basically record your card's information. The thieves can then duplicate your card and use it to take your money. In some cases, these people have even placed false front panels on regular ATMs to hide the skimmers.

The biggest ATM scam in history and the one that really changed everything was a $4 million heist. The gang that pulled it off didn't use skimmers or cameras, they actually bought a huge number of machines themselves and had them installed and hooked up to the bank network. Apparently, there were no regulations as to who could buy an ATM and set it up! These guys used the machines to record information and make duplicate cards which they used to steal up to $30,000 at a time, from assorted bank accounts.

Since that time, the regulations have supposedly gotten better and the guidelines more strict. However, Dateline did an experiment with a convicted criminal and he was able to buy machines without any difficulties at all. They didn't check his criminal record, not even when he out and out told them he was shady!

So, what can you do to protect yourself from ATM fraud? There are several things that you can do to keep these scam artists at bay.

First, make sure that your PIN is protected. Experts suggest changing it frequently to avoid problems. Also, cover your fingers when typing so that anyone peering over your shoulder won't be able to see. Doing this will also stop telescopic cameras from capturing vital information.

ATM machines in banks are probably safe, but if you are going to use one in a gas station or grocery store, it is recommended that you use one you are familiar with. If you use the same machine all the time, you will instantly notice if something changes, such as a false front panel that sticks out further or a strange message on the screen.

Pay attention to your bank account. When your statement comes, look it over, don't assume everything is ok. If you do online banking, regularly check your balance and transaction sheets. This will help you catch thieves before they have a chance to do too much damage.

When you notice something odd, don't continue with your transaction. You should just find another bank machine instead. It simply isn't worth the risk!