What is the new ‘card trap’ scam at ATMs? How can you be safe?

The next time you visit the ATM to withdraw money, beware. Using the machine has just become more risky. Scammers have devised a new plan to defraud ATMs to rob people.

The rising scam cases are a concern among authorities and even the Reserve Bank of India has been running campaigns to make people aware of the associated risks. As per the RBI data, 65,893 frauds related to “card/internetATM/debit card, credit card & internet banking” have taken place in 2021-22 involving a massive total of Rs 258.61 crore.

A recent report by The Times of India has revealed that a gang of ATM robbers were tampering with some unguarded ATMs across Delhi. What is that they precisely do? Let’s take a closer look.

What is the ATM ‘card trap’ scam?

The fraudsters first discreetly manipulate the card reader in the unguarded ATMs, and spray paint the CCTVs to avoid getting footage as evidence of the incident.

After a victim completes the transaction, they are unable to withdraw their card, which is stuck in the machine. The fraudsters, who impersonate fellow citizens in the queue, try to help the victim and persuade them to re-enter or share the PIN to resolve the issue.

Even after the victim re-enters the code, the card remains stuck within the machine, prompting them to leave or contact the bank for support. The story doesn’t end here, fraudsters who had taken note of the password, later retrieve the card and conduct fraudulent transactions.

The fraudsters not only commit fraud, some even resort to violence. During one such case on 19 April, a call received at a Delhi police station reported that two persons were trying to tamper with an ATM in Uttam Nagar. “When the caller, along with some others, tried to nab the alleged robbers, one of them brandished a pistol, fired a gunshot into the air, and fled from the spot,” a senior police officer, who was part of the team that reached the spot to investigate was quoted as saying in The Hindu.

On Sunday, Police also arrested three members of a gang of ATM robbers, identified as Vishal Negi, Amit Mehra and Vijay Kumar, who were committing the crime. The gang was involved in 25 incidents of tampering across Rohini, South West Delhi, East Delhi, North East Delhi, and South Delhi.

Being alert to ATM scams and knowing how the scammers operate has become crucial for safeguarding yourself from financial fraud.

How can you stay safe?

1. Always visit well-lit ATMs with guards. Under-maintained ATMs give fraudsters a chance to experiment with their card “tricks” and escape more easily.

2. Check for signs of tampering such as loose or odd-looking parts around the card slot also look for suspicious devices attached around the ATM cubicle.

3. Avoid asking for help from strangers and handle your transactions independently. If in trouble, do not panic and always contact authorised personnel from the bank’s customer service.

4. Stay vigilant and always cover the machine’s keypad while entering your PIN. A failure to protect your PIN can result in ATM card skimming, where fraudsters can clone your card and make unauthorised transactions.

5. Check your bank account statement regularly and stay alert to the offers that promise extra help and provide lucrative proposals.

6. Do not click on unknown links with bank logos and names or download attachments from unsolicited emails or messages. Usually, such messages have immediate warnings that require your urgent call to action. Always contact banks via official channels.

7. Avoid using cash transactions and adopt safer digital transaction methods such as such as UPI and online bank payments.

What about other ATM frauds?

Shimming

Criminals use thin, card-sized devices to secretly extract data from the chip of a debit or credit card. Unlike skimming devices, shims are discreetly inserted into the card slot, making detection difficult. This stolen data enables fraudsters to clone the card’s chip, potentially leading to unauthorised transactions and fund theft.

Card cloning

The scammers covertly capture card information using devices installed on ATMs or card readers, then transfer it onto counterfeit cards for unauthorised use. They usually prey on individuals unfamiliar with such scams, particularly targeting the elderly.

Awareness of these tactics and vigilance while using ATMs are crucial defences against falling victim to fraudsters.

With inputs from agencies