Sharp rise in cash machine fraud

Cash machine fraud has leapt 85 per cent in the last year, rising to 61 million of fraudulent transactions.

12:56 10 November 2004

Cash machine fraud has leapt 85 per cent in the last year, rising to 61 million of fraudulent transactions.

Perhaps the principal driver of this massive increase in card fraud is criminals' use of skimming devices, which copy card details, along with miniature cameras, which record cardholders' pin numbers.

Cashpoint fraud is seen as preferable to using a cloned card on the internet or in shops as it lowers the risk of detection. Vigilant shop staff often spot fraudsters' atypical behaviour and internet purchases can often be traced.

But consumers are being urged to keep using cards and cashpoints, but to act more cautiously.

The Association for Payment Clearing Services has advised customers to follow ten safety tips.

Sandra Quinn, director of corporate communications for APACS, said: "We all need to be more vigilant when we use our cards. By following our top ten tips cardholders will minimise their chances of falling victim to cash machine crime."

Miniature cameras and skimming devices are just one of the methods employed by criminals to gain credit card details.

More crude techniques include looking over the shoulder while a customer uses a machine - and then stealing the person's card; or a card trapping device that jams cards in the cashpoint, making customers believe their card has been swallowed.

But Ms Quinn pointed out that the vast majority of card use is safe and, with a little caution, there is no reason to fear cashpoints.

She explained: "Cash machines are our most commonly-used and most convenient way to access our money, with 75 cash withdrawals made every second.

"The vast majority of all these withdrawals are fraud-free - and the banking industry is working hard with the police and organisations such as Crimestoppers to keep it this way.

She added: "Remember, it is much safer to carry a card around than keep a lot of cash in your wallet and if you are a victim of card fraud you will not suffer any financial losses as long as you haven't acted negligently."

The top ten tips for safe card use
When choosing a cash machine:
- Put your personal safety first
- Be aware of others around you. If someone close by the cash machine is behaving suspiciously or makes you feel uncomfortable please choose another
- If there is anything unusual about the cash machine or there are signs of tampering, do not use the machine and report it to the bank or premises owner immediately
When using a cash machine
- Give other users space to enter their PIN in private. We recommend standing about two metres away from the user in front of you until the person has completed their transaction. Some cash machines may have a safety zone marking out this area on the ground around the machine
- Be aware of your surroundings, if someone is crowding or watching you, cancel the transaction and go to another machine
- Do not accept help from 'well-meaning' strangers and never allow yourself to be distracted
- Stand close to the cash machine and always shield the keypad to avoid anyone seeing you enter your pin
When leaving a cash machine
- Once you have completed a transaction, discreetly put your money and card away before leaving the cash machine
- If the cash machine does not return your card, report its loss immediately to your bank
- Dispose of your cash machine receipt, mini-statement or balance enquiry with care. Tear up or preferably shred these items before discarding them