ATM frauds getting more sophisticated: Experts

[Joy]

Economic frauds carried out through automated teller machines (ATMs)
are now getting sophisticated and trendy with both technical and human
expertise employed to siphon off the money.

Experts say that India, with its huge number of ATMs, is witnessing
fraud through ATMs on a wide scale — something that has been prevalent
in foreign companies.

“The problem of ATM frauds is global in nature and its ramifications
have been felt in India as well. It is a big threat and requires a
coordinated action on the part of all the stakeholders,” Cyber
security expert Pravin Dalal says.

ATM frauds are executed by techniques such as wire tapping,
replicating the digital signature of the card, getting authentic
personal data at fake data call centres, tampering ATM slots by
rigging, phishing through e-mail accounts and fixing hidden cameras at
vantage points inside ATM installations to steal the customers’
Personal Identification Number (PIN), a secret number allocated to
account holders by the bank.

Fraudsters use special devices like skimmers and duplicate ATMs to
withdraw stacks of money from ATMs. “Direct access to the bank account
through the ATM card will not cause huge per client losses but
collectively in the coming days it can be a huge figure,” Mayur Joshi,
head of India Forensic agency, a private firm, says.

Normally, ATM cards of new applicants are sent by official couriers by
the bank to the victims’ addresses.

“In a recent case investigated by my team in Nagpur, we found out that
in case the address is not traceable or the applicant is absent at the
time of the delivery, bank officials take possession of the card and
use it to withdraw money from the applicant’s account,” Joshi says.

Customers are asked to be careful about whom they share their personal
information with. A spokesperson for a leading national bank says,
“Banks never ask for personal information of their patrons over the e-
mail, through post or by sending executives. Customers should very
carefully mention their user ID’s, credit card numbers and passwords.”

Source: Business Standard