Consider this incident
Jeremy was on his way to work and suddenly remembered that he had to buy flowers
for Janice his co-worker who was celebrating her birthday that day. Jeremy pulled
up at the closest ATM centre as he was falling short of cash. Jeremy went inside
to withdraw $100 and left in a rush. After two days Jeremy was performing an online
transaction and noticed a withdrawal of $2,000 the same day that he distinctly remembered
to have withdrawn a mere $100. Alarmed he informed the bank authorities and upon
investigation it turned out that his ATM card had been duplicated and whoever had
duplicated it had withdrawn the sum from his account.
This is just one example of an ATM machine fraud or in other words ATM Skimming.
Slight ignorance on your part would lead to heavy losses while performing ATM or
credit card transactions.
What is skimming?
Skimming is the process where original data from your cards magnetic strip is electronically
copied to create a duplicate card without your knowledge. Most cases of counterfeit
fraud involve skimming.
Types of skimming
Here are the two most common ways of how fraudsters can duplicate ATM and credit
A scanning device
(skimmer) is used here that copies the information present in the magnetic
strip of your ATM card when u insert it in an ATM machine. When you perform your
transaction, the skimmer copies all the details of your card on to the device and
an overhead tiny camera records your PIN. The fraudsters can access the skimmer
and camera using the laptops wireless feature sitting near by ATM machine or pull
the skimmer and camera from the ATM and then copy the skimmer data into a computer.
Now they make a duplicate magnetic strip using a device called MSR
(Magnetic Stripe Recorder) and withdraw large sums of money from your account
using the PIN number.
A device attached inside the ATM machine traps your card as soon as you insert it.
Well meaning people around you will request you to make a couple of attempts to
perform transactions to observe and make a note of your PIN number. And, when you
get frustrated, give up, and move out of the ATM center to report the same to the
bank, miscreants would remove the trapping device, take your card from it, and as
they are already aware of the PIN, they would have performed huge transactions within
Now that you have learnt some information about ATM Skimming, its time you knew
about Point of Sale (POS) skimming.