The Internet caused a cash-machine fraud renaissance, but perps are first to be swindled.
By Bryan Gardiner – GIZMODO
When it comes to new and creative ways of pilfering personal financial data, ATM crime is enjoying something of a renaissance here in the U.S. In the past year alone, devices like skimmers have been found on point-of-sale machines, inside gas pumps, on ticket vending machines, and affixed to ATMs throughout Northern California and the rest of the country. In some cases, thieves have successfully made off with tens of thousands in cash and/or personal card data before anyone was the wiser.
It gets scarier. According to a recent FTC report (.pdf), in certain parts of the country you’re now more likely to be the victim of this category of fraud while making withdrawals than being a victim of a direct, physical crime.
Skimming 101
So what exactly is ATM skimming? At its most basic level, it’s when a thief affixes a phony card-reading device over the face of an ATM, and uses either Bluetooth or cellular technology (text messages) to transmit the data received from the magnetic strip to his own nefarious hands. Bam: all your debit card info are belong to criminals. That info is then either cloned onto a dummy card or sold to third parties for cash money.
And good skimmers are virtually impossible to detect. Indeed, manufacturers of these devices have become so adept at customizing their components — matching everything from the color scheme of the particular banking branch to the brand of the machine — that they can blend in perfectly. Enterprising criminals have even started fabricating made-to-order versions, built around photos of specific targets. In addition to the actual skimming component, identity thieves will often hide a small pinhole camera in a brochure holder, light bar, mirror, or one of those speakers on the face of the ATM to capture victims’ PINs. They also employ fake pad overlays that record which buttons are pushed.
If you get hit by one of these, a careful crook could slowly drain your account without ever even alerting you. Remember that month when you spent too much by accident and ended up in overdraft? Are you sure that you spent too much? Better take another look at that statement, chief.
But don’t take a vow of plastic celibacy just yet. Turns out, getting your greedy little hands on the necessary equipment requires an inordinate amount of patience and hard work. Even then, the would-be thieves (not you) are far more likely to be the targets of fraud. Ah, Karma.
NOTE: During the course of this month in this holiday season, TMOTT will be posting up all types of information and tips for the purpose of being safe… cause straight up, BAMMAS BE LUNCHIN… and have started bammin off already!! So stay tuned!