ATM scams are a scary reality
Internet fraud and ATM scams are so scary. I was standing behind a woman at an ATM the other day waiting to draw money, next minute she turned back and looked at me, her face was as white as a sheet. The machine had swallowed her credit card. I could see she started panicking and …
Internet fraud and ATM scams are so scary.
I was standing behind a woman at an ATM the other day waiting to draw money, next minute she turned back and looked at me, her face was as white as a sheet. The machine had swallowed her credit card.
I could see she started panicking and didn’t know what to do. She didn’t have her phone with her and no one at the shop next door could help her. So I gave her my phone and said she should call the bank and get her card blocked, which she did.
I am not sure if any money was stolen from her account because she was able to block her card very quickly, but several people walking passed stopped and said they had been a scam victim at that particular ATM.
This could have been a case of card skimming, where according to First National Bank (FnB), fraudsters use sophisticated devices to steal PIN and card information. In some instances they use hand-held card readers to copy people’s card information, either at point of sale or at the ATM. These devices are small and literally concealed in a criminal’s hand without the person even noticing.
FnB says, “Card skimming with handheld skimming devices in South Africa usually happens when the card leaves the hand of its owner.”
A lady at work told me someone has been debiting R99 from her account for many months and, despite the bank putting a watch on her account, it still happens regularly and no one can do anything about it.
Once the criminals have your information, ID number, card number and PIN, they can do just about anything. Worst of all, you will only know, once money starts disappearing from your account.
I am definitely more vigilant now and I try my best not to draw money anymore.
Have you been a victim of card skimming or fraud?
All ATM’s should have high definition cameras running 24 hours a day 7 days a week. Not the cheap Chinese cameras used by so many companies. 1 case solved at an ATM will pay the extra the good quality cameras cost more than the rubbish.
I am not an agent but Axis and Arecont are the only two I would use.
I have been a victim of fraud and have had an absolute nightmare dealing with Nedbank and the OBSSA.
The banks moved to CHIP n PIN to make transactions more secure but as stated in your article (and quoted by FNB) “… fraudsters use sophisticated devices to steal PIN and card information.”
Nedbank will have you believe that CHIP and PIN is infallible and has maintained that my fraud was 100% due to my negligence.
Nedbank has also stated to me in writing that they have and use “industry standard fraud detection and motoring systems, and risk profile and behavioural scoring systems’ to detect possible fraud but in my case, these were non-existent and completely failed me as they never picked-up 20 completely irregular and unusual transactions across my accounts in the space of an hour or two.
I find your article frightening as it would seem that fraudsters CAN actually steal PINs. This leaves gaping holes in Nedbank’s response to me and manner in which they have treated me as a customer.
In closing, surely if PINs can be stolen (lets not forget the risk of shoulder surfing at either an ATM or Merchant device and the level of crime in our country), then the bank’s should have additional early fraud detection systems to offer additional protection to customers who do become victims of fraud?
Dear Editor
I was a victim of ATM fraud on 30 August 2014 at The Berg Shopping Centre. The incident occurred at 8:15 in the morning, when I stopped to draw money at the FNB ATM. I was slightly distracted, having left my two dogs in the car. As such, I waited until an elderly lady had finished using the machine as well as a young, black male was wrapping up before I exited my car.
When I approached the machine, I saw that the man had left his slip in the machine. He stood behind me and apologised for troubling me as he had left his slip. I did so and he said that the machine was working, but I must insert my card slowly. He showed me the money he had drawn, his card and his slip in his hand. He then said he would show me how to insert the card. I refused, but he was very insistent and took my hand, removed the card and placed it slowly into the machine as he had said. I watched him do so, but had become anxious. As a result, as soon as he had walked away I tried to cancel the transaction, pressing the button several times to no avail.
The screen said “Insert cellphone number” and I was confused. The man behind me noticed my distress and asked what was wrong. I told him it was showing me something different to normal, and he replied saying that this was a new thing. At this stage, I did not realise that the two men were obviously working together. Once I inserted my cellphone number, I was asked for my pin which I entered, turning my back as usual.
I then realised that my card was not accessible, unsure of whether it had been swallowed or stolen (obviously assuming the worst given the circumstances). I immediately called FNB (lost/stolen card) and was placed on hold. In the interim, R3000 was debited from my account, and a further R568.00 petrol claimed for by Founders Service Station.
Two other transactions amounting to R7000 were attempted and declined due to limits on my account.
In the interim, FNB picked up the fraudulent activity on my account and called me on my cellphone. Unfortunately I was still on hold, and therefore they were unable to reach me. However, they contacted my mother and she (who was also unaware of the situation) was able to give them the details that they required.
I had my cards cancelled, and informed the manager at The Berg Spar of what had happened. I also spoke to a Metro policeman, who had been directing traffic for a road race at the time, who radioed the incident in to SAPS.
It was a very unfortunate incident. However, FNB Fraud Department have been exceptionally professional and helpful in the matter and have been investigating the case. The matter was resolved yesterday by the bank, which is appreciated and very reassuring.
I would urge people not to use ATMs, particularly at the end of the month, during quiet times or when you are on your own. The man I encountered was quite pushy, which makes me realise that while I feel quite silly about having reacted the way I did, I am also grateful because my concern in retrospect is that he had every opportunity to forcibly remove my card from me. Also, set your daily limits to the lowest you can, even if it is a hassle. There are professionals out there looking to spend your hard-earned money through these schemes.
Thank you for drawing our attention to this problem, more people need to be aware of this kind of scam.