Bruce Mandelblit
Wednesday, Jan. 12, 2005

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  Your greatest crime risk, until now, when using an ATM was to be a victim of an armed robbery or somebody trying to “shoulder surf” your ATM card’s PIN.

But wait!

According to a news release by the Florida Department of Banking and Finance, a new sophisticated scam has been documented. It is called “ATM skimming.”

In this ingenious rip-off, lawbreakers are taking advantage of technology to make counterfeit ATM cards by using a “skimmer.” A skimmer is merely a card swipe device that reads the information on a consumer’s ATM card.

Criminals create a magnetic stripe reader that fits neatly and unobtrusively directly over the magnetic stripe reader on the ATM, and the person making a withdrawal is often none the wiser.

The thief can also capture the customer’s PIN number with a small camera mounted in the skimmer itself or at another location near the ATM.

Click here for pictures and examples

Since the ATM works normally - the skimmer is reading your card, and allowing your transaction at the same time - the victim is unaware that they just given a criminal the “keys” to their bank account.

According to law enforcement officials, these skimming rings will often send their stolen ATM data to remote locations, including overseas, where factories are ready to manufacture sham debit and credit cards.

It is estimated that nationwide, ATM skimming has resulted in monetary losses exceeding $4 million; however this is just the very tip of the iceberg. Skimming has risen substantially in just the few months alone, and these high-tech bandits are fast gaining in their technical finesse, including purchasing their own ATM machines to capture your personal banking data.

Some criminal groups are actually buying their own ATMs for the intended purpose of carrying out ATM skimming, so be extra careful from whom you allow to install an ATM on your property.

Here are some consumer tips to help reduce the opportunity that these crooked criminals will skim their ATM card:

1. Be wary of anything about the ATM machine that looks out of the ordinary, such as odd-looking equipment or wire attached to the device.

2. Be wary of a “no tampering” sign. These are often placed by crooks to thwart anyone curious about a new piece of equipment.

3. Be wary of a jammed ATM machine that forces customers to use another ATM that has a skimmer attached.

4. Customers should also check their bank accounts regularly to make sure there are no unusual or unauthorized transactions. Federal law limits loss from ATM fraud, and many banks offer additional protection. Consumers should check with their financial institution for details.

5. If you see anything unusual or suspicious around an ATM, or if you find unauthorized ATM transactions on your bank account, notify local law enforcement, as well as your financial institution and/or the establishment where the ATM is located.

6. It is also a good idea to always protect your PIN including not giving the number to anyone and to cover the keypad while you are entering your PIN.

7. If possible, it is usually best to carry out your ATM transactions during the daylight hours as most ATM-related crimes happen after dark.

To help mitigate ATM skimming, an Electronics Funds Transfer Association Task Force has been established and will seek countermeasures to the rising use of skimming devices to steal money and information from ATM machine. This task force will work closely with law enforcement, including the U.S. Secret Service.

For more information on ATM skimming, log on to www.dbf.state.fl.us.

My Final Thoughts: This is a heads-up for all Americans to this dangerous and fashionable fraud of ATM skimming. It is an ironic twist that for these sophisticated outlaws, even more valuable than the ATM machine itself filled with stacks and stacks of cash, is stealing an individual’s personal bank data.

So, be alert and smart: If the ATM machine you are about to use doesn’t look right, just don’t use it!

(Note: If you manufacture or distribute any Security, Safety, Homeland Defense, Emergency Preparedness or Crime Prevention related products, please send information on your product line for possible future reference in this column to: CrimePrevention123@yahoo.com.)

Copyright 2005 by Bruce Mandelblit

“Staying Safe” with Bruce Mandelblit is a regular column for the readers of NewsMax.com and NewsMax.com Magazine. Bruce welcomes your thoughts. His email address is: CrimePrevention123@yahoo.com. Bruce is a nationally known security journalist, as well as a recently retired, highly decorated reserve Law Enforcement Officer. Bruce writes Staying Safe, a weekly syndicated column covering the topics of security, safety and crime prevention. Bruce was commissioned as a Kentucky Colonel - the state’s highest honor - for his public service. This column is provided for general information purposes only. Please check with your local law enforcement agency and legal professional for information specific to you and your jurisdiction.

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