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ATM CRIME IS on the rise across the nation. Fraudsters are stealing card data from ATMs at a reportedly high rate, and debit card users are encouraged to be on alert.

Criminals with skimming devices that collect data from a card’s magnetic stripe can rig ATM machines at banks, credit unions, shopping centers, stores and restaurants. These skimmers fit over the ATM’s card reader and look like a piece of plastic that belongs on the machine. When a customer uses the ATM, the devices record the person’s PIN with tiny overhead cameras, and the criminals can then manufacture counterfeit cards that can be used or sold on the black market. These cards are used to withdraw cash at an ATM, make purchases at a store or online, or tap into the card-affiliated bank account.

In October 2015, the nationwide shift to EMV (Europay, MasterCard and Visa) credit cards—cards with microprocessor chips— should provide some help in reducing financial fraud. As more merchants install EMV payment terminals, customers will be able to use a new chipped card to make more secure payments. (For more on EMV, see page 25.)

Here are some tips to avoid being a victim.

Pay attention. Anytime you use an ATM, observe it closely and look at your surroundings carefully. Do not text or use your phone at the same time you are using the ATM. If you see anything suspicious, report it to the bank and/or police immediately.

Use ATMs in well-lit areas. Do not use ATMs hidden in a location thieves could access easily without being detected. Although it is more difficult for thieves to attach skim-

How safe is your ATM?
CONSUMERconnection

mers in more secure areas, it is not impossible, so practice a high level of awareness. Use ATMs with visible security cameras.

Cover your PIN. Cover the ATM keypad when entering a PIN. If a hidden camera has been installed on the machine this will obscure the PIN number.

Vary your PIN. Avoid PIN combinations that use sequential numbers like “1-2- 3-4.” Make sure to change your combinations and update your PIN regularly. Do not use the same PIN on all accounts.

Use the ATM during the week. Reports show that skimming devices are often placed on ATM machines over the weekend when banks are closed. If you need to use the ATM, do it during banking hours.

Monitor bank accounts. Set alerts on your accounts to notify you of suspicious activity, and check your accounts online daily. If you see unauthorized activity on your account, contact your bank or credit card company immediately.

Set a withdrawal limit with the bank. A daily ATM withdrawal limit helps prevent scammers from making successive withdrawals from your bank account in a short period of time.

Choose the credit option. When using a debit card with a Visa or MasterCard logo, if you choose the credit option, you do not have to enter your PIN. The transaction will be processed through a credit card network, which should provide greater protection if fraud occurs.

Be wary of ATM tampering if:

• There is unusual equipment around the ATM keypad. If a skimmer has been added to a machine it will look like part of the machine, but it could come right off if you wiggle it. Immediately notify the bank or police.

• The card slot is a different color than the rest of the ATM. The slot to read your card should be the same color as the rest of the machine.

• There is an out-of-service sign on the machine. Sometimes criminals use this to steer you to a nearby rigged machine or as a distraction to install skimmers. C

OWEN WILD, director of security marketing at NCR Corporation, one of the largest ATM manufacturers, shares more about the end of swipe-and-sign credit cards and ATM safety. Here are his insights.

Your best defense. Consumers should begin to use the new forms of card readers that utilize chip-card transactions. As more and more ATMs and point-of-sale (POS) devices begin to utilize the new capability of EMV cards, the risks of skimming will decline. However, as long as the magnetic stripe remains on cards, these cards will be vulnerable. It’s important to note that EMV technology is not going to completely stop skimming. Even in markets that migrated to EMV years ago, skimming activities are still occurring.

Consumers should be observant when using an ATM to help protect themselves from skimming attacks. As one of the world’s leading providers of bank technology and software, NCR has made anti-fraud measures a pillar of its research and development. While criminals are always finding new ways to attack, NCR has developed ATM technology that can disrupt a skimmer from being attached to the card reader and notifies the bank and the authorities when an attempt is made. Consumers can ask their financial institution which of their ATMs feature these tools.

Shifting liability. Under current guidelines, liability for card fraud is assumed by the card issuers. As part of the move to EMV technology, the liability will shift to businesses and/or card issuers unless they deploy and operate under the new technologies. EMV compliance includes issuing and accepting cards with chips and using the chip readers on ATMs and POS devices.

If you think you’ve been skimmed, contact your financial institution and the authorities. Request a new ATM card and change your PIN. C Avoiding the skim

David Horowitz is a leading consumer advocate. David’s daughter Amanda Horowitz is the CEO of Fight Back! and co-founder of FightBack.com. Email David and Amanda at info@fightback.com.