CHICAGO - An ATM network operator has warned Chicago-area banks of a new scam involving ATM machines. The Chicago Sun-Times reported that criminals place an additional card-swiping device on ATMs along with a sign advising customers to swipe cards on the device for additional security.
Cash Station Inc. president Steve Cole told the newspaper that the devices had been placed on at least three machines in Chicago for brief periods of time, until bank officials confiscated them. The devices record the consumer's card and PIN information, and crooks are able to duplicate the cards and clean out the accounts.
Cole would not reveal how much money had been lost to the crooks, nor would he allow the device to be photographed for fear of copycat crimes. Cole said customers should be aware of the fraudulent devices and only swipe their card in its normal location.
Cash Station's parent, Card Alert Services, and the Federal Bureau of Investigation are looking into the scam, Cole said. He said this type of scam has also been identified at some West Coast banks.
