A growing threat to the security of personal bank accounts around the world has reared its ugly head in Connecticut.
A man who would only identify himself to police as “Martin” allegedly attached skimming devices to ATMs in two Wallingford, Conn. banks, the New Haven Register reported late Wednesday.
As a result, he has been charged with criminal attempt to commit larceny, criminal attempt to commit identity theft and unlawful possession of a skimming device, the newspaper reported on its Web site. He has been scheduled to appear in court Aug. 6.
The man allegedly targeted North Colony Road branches of Wachovia Bank and Bank of America.
“As technology evolves, there are more and more ways for criminals to circumvent the process,” Connecticut State Police spokesman Sgt. Chris Johnson told the Register.
Thieves can capture ATM, debit and credit card information through a process called skimming anywhere such cards are used by capturing the information contained on the cards’ magnetic strip. In many cases, cameras are also attached nearby to capture PIN information.
ABCNews.com recently reported on how simple it is to be victimized:
Sean Seibel thought it looked just like any other ATM — at least at first.
Earlier this month, the 33-year-old Microsoft employee, who lives in New York City, stopped in the closest Chase bank to get some cash to pay his barber. But when he inserted his ATM (automatic teller machine) card in the machine, he noticed a bit of resistance.
The screen said the machine was unable to read his card. So he tried again. But a second time, the machine gave him an error message.
He was about to give up and try another machine, when a thought popped into his head. He had heard about devices that fraudsters attach to the outside of card readers on ATM machines and, though it seemed unlikely, wondered if that was the source of his problem.
“I’m looking at the thing and thinking this can’t be – no way,” he said. “There are all these stories and myths about it, but I actually found one in the wild.”
With a combination of fear and exhilaration, he tried to pull on the green plastic surrounding the card slot and found that it peeled right off.
So if a seemingly informed and technologically savvy person like Sean Seibel could be nearly victimized, any of us could.
However, by following but a few simple tips, you could avoid becoming a victim.
Consumer Reports recommends:
- Don’t type in your pin at the gas pump for your debit card because they are produced by only a couple manufacturers making it easier for someone to gain the ability to insert a skimming device inside the pump where it cannot be seen. If a credit card is unavailable, the publication suggests choosing the screen prompt that identifies the card as a credit card so a PIN is not required; greater protection from liability is gained if fraud occurs this way.
- Closely monitor your bank accounts — preferably online — because federal law limits consumers’ liability for fraudulent debit-card charges to $50, but only if the theft or loss is reported within two business days. Failing to report unauthorized charges within 60 days of the date of the statement could make you liable for any unauthorized withdrawals afterward. Visa and MasterCard have zero liability policies that go beyond federal law by exempting debit users from liability in most circumstances when a bank investigation confirms a transaction is fraudulent. However, dealing with debit-card fraud has the potential of having a greater impact on your finances than credit-card fraud as you won’t be out any money while the disputed charges are being investigated.
- Use ATMs at banks because there’s generally more traffic and surveillance cameras to prevent someone from attaching a skimming device. Granted, as noted in the ABCNews.com report, bank ATMs could also be targeted. And, in fact, ABCNews.com reports that criminals are beginning to target ATMs in banks because the increased traffic gives thieves the potential for more activity and subsequent money.
ABCNews.com offers six recommendations of how to spot ATM skimmers:
- Be aware of your surroundings. Be extra careful of machines in dark areas or in places that don’t look well guarded and monitored.
- Pay attention to the front of machines. If it looks different from others in the area (for example, it has an extra mirror on the face), has sticky residue on it (potentially from a device attached to it) or extra signage, use a different machine and notify bank management with your concerns.
- Notice how it feels to type in your PIN code. If it’s difficult to punch the keys or you feel resistance, it could mean that a keypad overlay is present.
- Cover your hand as you type in your PIN. If a camera is present or someone is trying to look over your shoulder, this will obstruct their view.
- If you think the area around the card entry slot looks peculiar, pull on it. If it comes off or loosens, alert bank management but try to leave the machine as you found it. Leaving the evidence in place could help authorities track down the criminals.
- If you find a skimming device, in addition to notifying bank management, the ATMIA says to notify local law enforcement.
However, American consumers still appear to be concerned about their money.
According to the same ABCNews.com article:
A February study commissioned by Level Four, an ATM software company, found that 67 percent of American adults would consider switching to a competitor if their bank suffered an instance of ATM fraud. Steven Lund, president of Level Four Americas, LLC, told ABCNews.com that rising fraud in many European countries is what led them to replace the magnetic strip technology with the “chip and PIN” approach (also known as EMV for Europay, Mastercard and Visa).
If things get completely out of hand, American banks might resort to a South African technique of loading pepper spray into automatic teller machines to deter crooks, as Tech Talk reported several weeks ago here. Granted, a few modifications would have to be made first.
