News

Educate users about ATM fraud

October 26, 2004

A thwarted attempt at card skimming at a Maryville, Tenn., ATM earlier this year illustrates the trust many consumers place in cash machines.

When Mike and Roxanne Coffey saw a sign posted at a First Tennessee Bank ATM reading: "Due to recent fraud attempts at this ATM machine, we require you to swipe your card in the reader below before using the machine," they didn't hesitate to swipe their card in the reader indicated, despite the unusual message.

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Fortunately, Roxanne Coffey noted a misspelling in the rest of the message: "We appologize [sic] for the inconvenience." The couple examined the device more closely and noticed it was held in place with double-sided tape.

Realizing there was a problem, they called the First Tennessee customer service number. They cancelled the card that had been swiped and removed the reader - which was actually a skimming device used to harvest card information from unsuspecting ATM users.

According to a local newspaper, outside law enforcement, as well as First Tennessee's security division, investigated the case.

In the newspaper's report of the incident, a First Tennessee executive urged cardholders to be alert for anything unusual - such as the sign - at ATM locations.

Getting the word out

A number of industry groups are trying to inform cardholders about possible ATM scams in hopes of reducing fraud activity.

The Global

Global ATM Security Alliance: http://www.globalasa.com/cardholder.html Pulse EFT Association: http://www.pulse-eft.com/csafety.asp American Bankers Association: http://www.aba.com/Consumer+Connection/debitcardfraud.htm

ATM Security Alliance, formed in June 2003 through the efforts of the ATM Industry Association, last October published a Quick ATM Customer Guide and Top 20 Tips for ATM Use.

Both are filled with snippets of common-sense advice designed to help users avoid becoming victims of skimming scams, as well as less high-tech crimes such as shoulder surfing, card traps and old-fashioned physical violence. They are posted on the GASA Web site and in ATMIA's online ATM Resource Center.

The tips are in the public domain, and so may be used by anyone, said ATMIA CEO Mike Lee. "We allow deployers to brand and distribute the tips as they see fit. We just want the message to reach cardholders."

The Pulse EFT Association offers a similar set of ATM user tips on its Web site. The tips were revised in 2003 to include specific references to alteration of a machine's appearance - which is common in skimming scams.

"We think it's important to inform the public as these activities become more prevalent," said Mary Brown, Pulse's senior vice president.

Pulse steps up its efforts to get its members thinking about their customers' safety each June, which it designates as ATM and Debit Card Security Month.

The American Bankers Association recently added some anti-skimming and other ATM safety tips to the Consumer Connection area of its Web site, said spokesman John Hall.

Hall said the tips are especially important in light of increased media reports on skimming, phishing and other forms of sophisticated identity theft.

"These reports can alarm people," he said. "We want to make sure that they are armed with information that will empower them as ATM users."

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