Bank Teller Machine Scams to Avoid

A bank teller machine provides the convenience of around-the-clock access to cash for customers, but it can also open the door for scams and thefts. Bank teller machine scams range from theft to high-tech operations designed to steal account and personal identification numbers. In many cases, scams surrounding ATM machines can be avoided by consumers if they are aware of how they are perpetrated. Some of the more common bank teller machine scams to watch out for and avoid, include:

Skimmer Machines

This is a high-tech scam that involves the replacement of the bank’s card reading device by one installed by criminals. A skimmer device will read and store credit and bank card numbers so scammers can access them later. This scam may also involve the use of a small camera that will record personal identification numbers as customers attempt to punch them into an ATM’s keypad. Variations on this scam have been found as gasoline pumps, freestanding ATM machines and other locations that accept bank card and credit card payments. When account numbers and PINs are stolen in this manner, the bad guys can use the information to purchase items over the Internet and even to manufacture counterfeit cards of their own that will access the victims’ accounts. Law enforcement officials recommend that people look for anything out of place at bank teller machines before entering their information. If a card reader’s faceplate is loose, for example, it could indicate a problem.

The Lebanese Loop

This rather low-tech scam involves the installation of a blocking mechanism that makes customers believe their cards have been confiscated. It works by accepting the card and then not returning. As a customer punches their PIN into the bank teller machine, a camera or “customer in line” records the PIN information. At the end of the transaction, however, the card is not returned. At this point, customers will often enter a banking institution to inquire about their cards. Avoiding this particular scam can prove difficult, but customers can safeguard themselves in a few ways. They can, for example, take care that people in line cannot see the entry of a PIN number onto a keypad. They can also scope out an ATM machine for any indication of tampering.

Cash Drop Theft

This is another low-tech scam that tricks customers into dropping cash deposits into a receptacle that does not belong to the bank. In this scam, the bad buys place a sign by the bank teller machine that says it is not in proper working order. The sign will direct people with cash deposits to place them into the scammer’s own receptacle, which, of course, is not secured. The best defense against this type of ATM scam is to avoid making cash deposits into any unsecured device. Keep your deposits to teller visits.

False Machines

Well-funded, high-tech scammers have also been known to establish fake bank teller machine locations. In this scam, a fake ATM machine is placed in a high-traffic area. A customer will attempt to withdraw money, but the machine will not provide it. Instead, the false ATM will skim their account information and record their PIN numbers. The best avoidance policy on this one is to pay attention to other customers in a bank machine line. If they appear to have trouble accessing cash, walk away.