The number of thefts at cash machines is on the rise as fraudsters look to steal cash under your nose, experts are warning.
Up to 2,500 Britons fall victim to card fraud at ATMs every week, according to Financial Fraud Action UK - and those going to the US on business or holiday have been told to take extra care.
It comes after the number of machines hacked by criminals in America last year rose 546 per cent in 12 months to its highest ever level, according to New York Stock Exchange-listed software firm Fico.
When using a cash machine, it is important to be alert for signs of criminal activity. Here are some telling signs that an ATM has been tampered with, from Fico's fraud specialist Brian Kinch:
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When using a cash machine, it is important to be alert for signs of criminal activity - of which there can be many
1. Criminals are adept at placing card or cash capture devices and PIN compromise devices in or around ATMs to get quick access to consumer funds. Some even install entire false fronts to ATMs to capture people's PINs and money.
These are often so well disguised that they can be extremely difficult to detect, so properly look at the ATM you are using to try and check it is legitimate.
Ticket skimmers: Fraudsters can superimpose gadgets to steal card information on top of real cash machines
2. An unusually bulky card insert slot might suggest a 'skimmer'. A skimmer is a tool that is attached to the card slot on an ATM and secretly swipes your card details while you're making a withdrawal – it's almost indistinguishable from the real card reader.
Look out for misaligned or even misprinted stickers, as this is often an attempt to cover up where a compromise device has been installed.
3. A loose or blocked card slot may suggest the presence of a 'Lebanese Loop'. Thieves can place a tiny plastic device or sleeve with a barb into the card reader so that, when you try to withdraw money, your card is caught in the machine.
The ATM will continue to ask for a PIN as it can't read the card so, if you are led to believe your card has been swallowed, you may walk away and leave your card to be taken by the fraudsters.
False frontage: Whole fake ATM covers (left) can be used to steal debit cards and card information. A blocked card slot can suggest the presence of a 'Lebanese Loop' at the back of the machine (right)
4. If the PIN pad feels loose, thick, or sponge-like, then it may be a fake. This long-standing way of capturing people's PINs is known as a 'pin-pad overlay' - the true PIN pad is covered by a counterfeit keypad such that, although pressing the buttons correctly causes the ATM to register your PIN, it is simultaneously being captured by the criminal.
Sometimes these digits are even instantly being transferred by WiFi to a waiting accomplice to record and use later.
Grabbers: These two devices are examples of cash claws which can help criminals take money from ATMs
5. Be aware of your surrounding environment, not just the appearance of the machine. Do not accept help from seemingly well-meaning strangers and don't allow yourself to be distracted while at an ATM.
Typically fraudsters work best in teams, and distraction is a good way of scamming innocent victims to obtain a card or PIN. If an ATM is surrounded by individuals inexplicably loitering, ideally try to use a different machine.
Sometimes these will be confidence tricksters who, for example, have deployed a cash or card trap and will become overly helpful when you run into trouble. Whilst you are distracted, an accomplice can quickly check your PIN or remove and conceal your card or cash.
How Britons are suffering from debit card fraud in the US
Nearly half of all debit card fraud suffered by Britons abroad takes place on the other side of the Atlantic.
The surge in criminal activity seems have been focused on non-bank cash machines – such as ATMs at convenience stores. Ten times as many of these types of machines were compromised compared to 2014, according to Fico.
TJ Horan, vice president of fraud solutions at Fico, said: 'Criminals are taking a quick-hit approach to ATM theft and card fraud.
Issue: Nearly half of all debit card fraud suffered by Britons abroad takes place on the other side of the Atlantic
'They are moving faster to make it harder for banks to react and shut down the compromises. They are targeting non-bank cash machines, which are more vulnerable - in 2015, non-bank cash machines accounted for 60 per cent of all compromises, up from 39 per cent in 2014.'
If someone is crowding or watching you, then cancel the transaction and go to another machine
Brian Kinch, fraud specialist
The firm is warning that this type of fraud 'migrated' over to the US and could soon return to the UK.
Martin Warwick, Fico's EMEA fraud chief, added: 'Different countries' defences against fraud, banks' adoption of powerful analytics, and their use of EMV [chip and pin] technology have pushed fraudsters from one type of fraud to the next, crossing borders to find easier targets as EMV strengthens protection in the US, criminals will be looking for the next lucrative opportunity.'
Mr Kinch said: 'When taking money out of an ATM, it's important to always stand close to the machine and shield your PIN carefully. Once you have completed the transaction, put your money and card away before leaving the machine.
'If you spot anything unusual about the machine, or there are signs of tampering, make sure you leave it well alone and report it to the police or your bank immediately so they can investigate.
'Ultimately, always remember to be alert and put your personal safety first - if someone is crowding or watching you, then cancel the transaction and go to another machine.'
It was revealed in January 2015 that criminal gangs had been adapting mobile phone video cameras and hiding them in cash machines to help empty bank accounts.
The use of the gadget came to light after a MailOnline reporter became a victim of the scam - with the device secretly helping to fuel a rise in the £100million-a-year card fraud industry in Britain.
Police advised potential victims to look out for anything suspicious, but warned against taking devices away because there was a chance the gangs could come after people to get them back.
Technique: MailOnline revealed in January 2015 that criminal gangs had been adapting mobile phone video cameras and hiding them in cash machines to help empty bank accounts
Last year two fraudsters were jailed for a total of six years for a scam which netted more than £2million worth of stolen card details from potentially thousands of victims.
Florin Ardel, 25, and Ioan Flore, 33, were arrested after officers found an ‘Aladdin’s cave’ of card skimming equipment at an address in Southgate, north London.
Officers had followed Ardel back to the property after spotting a gang acting suspiciously around an ATM in Mayfair. Ardel was then seen dumping gift cards on the back into a rubbish bin outside.
When officers searched the property, they found an array of card-skimming devices, with side camera bars, false ATM fronts and memory devices.
Meanwhile in 2013 the Daily Mail revealed how British police were hunting for the ‘Mr Bigs’ running Romanian gangs that were behind more than 90 per cent of cashpoint thefts in Britain at the time.
Culled from Mail Online
