Tags: card | PIN | fraud | ATM

MarketWatch: ATM Fraud Is On the Upswing

By    |   Friday, 28 February 2014 01:28 PM

Banks are seeing a troubling leap in ATM fraud in the form of debit-card skimming, MarketWatch reported.

With that kind of thievery, consumers can suddenly find themselves with an empty bank account while they wait for fraud protection guarantees to come to the rescue.

During 2012, ATM fraud, defined as when a thief uses stolen PIN and card information to fraudulently withdraw money from an automatic teller machine, jumped 48 percent, according to FICO Card Alert Services.

Next to bank-owned ATMs, the most common target of card skimmers are stores and other point-of-sale destinations where debit cards are used, MarketWatch reported.

John Buzzard, manager of product management and fraud operations at FICO (the dominant credit scoring company in the U.S.), said the recent massive data theft and compromise of card data from the Target store chain has not led directly to significant ATM fraud. It’s ironic to see bank-owned ATMs as the main source of skimming, since consumers tend to view those terminals as safer than independently owned ATMs, MarketWatch said.

Bank customers also favor those ATMs because they can often avoid withdrawal fees.

Buzzard urged consumers to avoid trouble by looking often at their card transaction activity.

“There’s so much technology that’s free and available to the consmer today that it’s a shame that so many of them aren’t taking advantage of it,” Buzzard said, noting that many banks and credit unions offer free smartphone apps for monitoring accounts. “A quick look every day, it’s really powerful. You don’t have to live and breathe your personal finance, but it’s really important to have something that at a glance you can look at your accounts in detail.”

MarketWatch mentioned Credit Report Card as an online tool that monitors consumer credit for free. Any unexplained, major change in a consumer’s score can signal identity theft.

The Consumer Financial Protection Bureau recommended additional steps consumers can take to safeguard their debit cards and payment cards.

The agency recommended changing card PIN numbers, alerting a bank or card provider immediately if fraud is suspected and keeping specific evidence of fraud such as suspicious transactions. The agency also warned consumers to be alert for phishing, in which an online fraudster tries to convince a consumer to volunteer their personal information.

A legitimate bank or card provider will never ask for account information by mail or e-mail. If requests for card numbers, PIN numbers, Social Security numbers or similar information are made, consumers should report the incident to their card provider, the CFPB said.

© 2020 Newsmax Finance. All rights reserved.

1Like our page
Banks are seeing a troubling leap in ATM fraud in the form of debit-card skimming, MarketWatch reported.
Friday, 28 February 2014 01:28 PM
Newsmax Media, Inc.
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved