ATM Fraud: Six Steps to Improving Customer Awareness

ATM attacks are among the most prevalent forms of fraud striking banking institutions and their customers. And while institutions are ever more vigilant at defending against these increasingly sophisticated crimes, the best defense might still be the simplest: Customer education.

A glance at recent headlines scratches the surface of the current trend:

$500,000 taken in skimming at a Sovereign Bank in New York City;

600 ATM customers hit in Nashville, TN;

Three ATM skimming operations in Maryland, Illinois and Georgia netted thieves more than $120,000;

300 credit union members in North Carolina were victims of a skimming scheme;

A skimming operation in Houston, TX cost one bank $200,000;

Three men arrested in Boston, MA on charges of ATM skimming.

Many of the skimming devices were not discovered before criminals siphoned off ATM account numbers and PINs, withdrawing thousands of dollars. ATM skimming was also named as one of the top 10 fraud threats for 2010.