business that installs ATMs in commercial locations. He outlined a deal where he would put a portable machine in the hotel's lobby. Every time a guest used it, his company would collect a service fee of one dollar fifty cents. He'd give one dollar of that to the hotel. It's a deal that sounded great. The hotel would have a new convenience to offer its guests, and not only would it cost the hotel nothing, but also the hotel would make money off of it. So the manager said, go ahead, put it in.
The criminal rolled it in, and unlike with the mall caper, he loaded it with $1,500 so it functioned like a legitimate machine and actually dispensed cash. He didn't mind this little investment, considering the returns he anticipated. His machine wasn't connected to a bank phone line, either. It was simply registering card numbers and PIN numbers to allow counterfeit cards to be generated.
So don't be fooled into thinking a machine must be real if it dispenses money. Criminals aren't that cheap. They're perfectly willing to invest some cash if the returns are much greater, as they inevitably are in scams like these. I'm always mistrustful of portable ATMs, and use them only if I have no alternative. When I go to a stand-alone machine, though, I always take a look behind it to see if it's connected to a phone line. If it isn't, it's a fake.
JUST SKIMMING ALONG
The latest approach to ATM theft is skimming. Skimmers similar in function to the ones I spoke about for credit card fraud are specially manufactured for ATMs. Criminals fit them over the card slot on a standard ATM, and they have a magnet in the back that holds them in place. The skimmer is motorized, so that when you put your card in, the motor nudges the card along so it actually penetrates the real hole as well. That allows the machine to function normally. But while the card passes through the skimmer, your card information is stored on its chip. At the end of a day, the criminal retrieves his skimmer, as well as dozens of account numbers and PINs.
Anytime you notice something protruding from an ATM, be suspicious. The card slot should be flush. Someone I know once encountered a skimmer, yanked it off the machine, and went in and handed it to a bank officer. "You might be interested in this," he told him. "I found it on your machine."
WHAT TO DO
It's the simple things that can prevent you from becoming a victim of ATM fraud, and so let me review the key safeguards to keep in mind. Never give out your PIN to anyone, especially someone who maintains that he's a bank officer or a security guard. All a crook needs is your card and your PIN, and he can go to town. If others are waiting in line behind you to use the ATM, don't be lackadaisical, and block the keyboard when you enter your PIN. Some banks have redesigned the ATM keyboard or enclosures to make it particularly difficult for an observer to watch the cardholder punch in his PIN, but even then you need to be watchful.
Never write your PIN on your card or on a piece of paper that you keep in your wallet or purse. I know some people who put it on a little sticker and attach it right to their ATM card. That's credit suicide. If your ATM card is lost or stolen, immediately report it to your bank so that card can be disabled. Crooks move fast, and you need to move faster.
Don't consider using an ATM unless you've checked out the area carefully. If people seem to be loitering by the machine, don't assume they're there for innocent purposes. And check across the street for people with cameras or binoculars, those long-distance surfers I mentioned. If something about an environment makes you uneasy, err on the side of caution and come back later or use another machine.
If you feel threatened while processing a transaction, press the "cancel" button and leave the area. If you sense someone is following you, drive to the police station or nearest business with a lot of people around. Once you're done getting your money, don't just stand there at the machine and count your cash, advertising your withdrawal. Put it away, leave the area, and count it once you're in your car or back in the office.
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