ATM fraud is described as a fraudulent activity where the criminal uses the ATM card of another person to withdraw money instantly from that account. This is done by using the PIN. The other type of ATM fraud is stealing from the machine in the ATM by breaking in.
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ATM skimming is done by placing a tiny device for stealing data from the card when it is being swiped. For this to work out, the criminal also needs to keep a camera inside the ATM or hack the bank camera for getting the ATM card PIN. Then the fraudster uses the details for cloning the card or for making online purchases.
You have to check the ATM machine very carefully. If the machine has a skimmer or has been tampered, you will notice that the card reader is extended a little more. Also, you may notice that the machine keypad is standing outside slightly. Look for glue, tape, or a pinhole camera in and around the machine to detect a skimming activity.
For ATM skimming, a fraudster uses a skimming device. This device typically has 2 parts. The first part of the device is a tiny one and is placed on the card swiping area. When the card is inserted, the skimmer will copy the magnetic strip data of your card. The other part is a tiny camera, which will click a picture of you keying in the PIN. Thus, the fraudster will use your card PIN and card magnetic chip data for making a fake card and use it in other ATMs to withdraw from your account.
If you think you have been skimmed, you need to immediately contact your bank customer care centre. Once you report the crime, the bank will look into it and replace your card according to your specific situation. Moreover, the RBI has stated that the customer liability is zero if a third party has committed the unauthorised transaction. This is because the bank or the customer is not at fault. However, there are certain terms and conditions related to this. The bank executive will explain the procedure to you.
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