ATM Scams
Plastic Sleeves/Skimming Devices
When an unsuspecting member inserts his or her card and enters their PIN, a message instructing the user to reenter the PIN is displayed because the machine cannot read the card's magnetic strip.
After several unsuccessful attempts to reenter the PIN, the user finds that he or she cannot remove their card and, in many cases, leaves the machine mistakenly believing that the machine has malfunctioned and retained their card.
In reality, the thief, posing as another member waiting in line and feigning aggravation over the malfunctioning machine, was able to memorize the user's PIN following the unsuccessful entries, before leaving the area. After you leave, the thief (or an accomplice) returns to the machine, removes the plastic sleeve containing the user's card, reinserts the card without the sleeve, enters the user's password and empties their account.
Should you or anyone you know encounter such a scenario, carefully examine the card slot and run your fingers across it to find one or more of the almost imperceptible "prongs" attached to the plastic sleeve that are designed to permit the thief to remove it.
Should you be unable to retrieve your card for any reason, do not assume that the machine "ate it". If you have a cell phone and feel the card was retrieved in a fraudulent manner, remain at the machine and call the telephone assistance number for the appropriate financial institution that issued the card, if it not one issued by MCAS Beaufort Federal Credit Union; if it is a card from the credit union, call 1-800-554-8969 to have the card blocked and a new card and number will then be reissued to you at your request. There may be a minimal charge to replace the card, but it's well worth the security of knowing your account has not been drained.
Please note: If you are met by an "ATM repairman" or someone identifying himself as "a police investigator" who retrieves the card from the slot, do not turn that card over to them for any reason, most notably for "evidentiary purposes". Con artists often pose as repairmen, police investigators and even FBI agents; legitimate law enforcement officers will never ask you to turn over your ATM card, credit card, or cash.
In one case a bogus female bank employee stood next to an ATM machine promoting a special bank competition in which cardholders were entered into a special drawing simply by writing their names on the back of transaction receipts and placing them into a box. Little did they realize that their pass codes were being observed and recorded.
White Plastic
White plastic is a term given to any piece of plastic used as a credit card. Normally, a blank piece of plastic embossed and encoded with a stolen account number is used for fraudulent cash withdrawals at ATMs or with cooperation by merchants.
White plastic is also being used in a scheme called "shoulder surfing" which either involves setting up a video camera or an actual person to record individuals using an ATM.
The camera is focused on the PIN pad to capture a member's PIN or is retrieved by a person merely standing in a position to see what you type.
At the end of the day or at intervals throughout the day, suspects retrieve discarded receipts from around the ATM which contain the account number and time of transaction. Once the criminal has both the PIN and the account number, they can produce a duplicate card.
Fake Automated Teller Machines
In New Haven, Conn., two suspects opened a fictitious ATM leasing company called Guarantee Leasing, Inc. They rented office space on Park Avenue, New York City, NY, incorporated the fictitious business, created fictitious letterhead, purchased four ATMs and had the unsuspecting ATM company bill them.
Then they contracted a computer programming company to install a computer inside the ATM that would simultaneously capture the personal identification numbers and account numbers of anyone using it telling the computer company they planned to use the ATM and computer at a trade show simply to demonstrate the versatility of the machine.
Once the ATM was altered to capture the account numbers and PINs, it was installed at a very exclusive mall in Connecticut where they had disabled other ATMs, by jamming the ports with plastic cards and super-glue, so that all automated banking transactions were steered to their machine.
The fake ATM originally dispensed some cash, then merely displayed that it was temporarily out of service. By the time it was "out of service," however, it had captured the PINs and account numbers of many people who had used the machine.
The suspects then encoded and embossed the account and PIN numbers they had obtained on counterfeit credit cards, and a shopping spree ensued.
An alert bank employee and law enforcement efforts saved the banking industry millions in potential losses because the scammers had mapped out other malls in exclusive areas up and down the entire east coast.
The main suspect was a 51-year-old graduate of Brigham Young University with a masters in business administration from Tulane University who had been a corporate planner for a Fortune 500 company and a senior vice president for a bank. The second suspect was considered a computer genius and had an outstanding warrant for wire fraud.
Following their arrest, investigation revealed that they had been involved in financial crimes for over 10 years and had defrauded two auction houses in New York City of over $300,000 using counterfeit cashier's checks.
The Good Samaritan
One scammer, who placed a Plastic Sleeve/Skimming Device on machines over a ten year period, would be nearby when a person experienced difficulty. He would then approach the victim and claim that the same machine trapped his card the previous day.
He told the victims that they might be able to free their card by re-entering their PIN. He would then watch and memorize the PIN. After the ATM user left, he would remove their card from the machine and use it to empty their account.
Be aware of your surroundings when using an ATM. If for any reason you feel uncomfortable about the situation, just take your card and walk away. You are better off having to locate another ATM that is more secure, than having your information stolen and used to steal from you.
MCAS Beaufort Federal Credit Union is not liable for the content or availability of linked sites.
|
