MCU: New York's Credit Union Since 1916

Each year trillions of dollars are dispensed from automated teller machines around the world. The vast majority of these transactions are safe and secure, but the potential for fraud is always present.

ATM Fraud

It seems like ATM machines are everywhere these days. In addition to credit union or bank branches, ATM machines can also be found in places like the corner deli, outdoor flea markets, gas stations or the local mall. While the convenience of using an ATM at the corner store may be appealing, many of these ATMs are owned by non-bank corporations.  Unfortunately, many of these organizations do not take proper precautions to protect the data being transmitted. This is done by encrypting the data to industry standards. Many of these smaller corporations may not be encrypting the data, thereby exposing your account to fraudulent transactions.

Of course, not every independent ATM machine is fraudulent, but recent ATM fraud scams have highlighted how easily the security of independent ATM machines can be compromised. In attempts to steal confidential account information, perpetrators have used tactics as simple as looking over someone’s shoulder as they used an ATM machine, to more sophisticated telescopic cameras trained on keypads or card skimming devices that steal information on an ATM card’s magnetic strip. In some cases, perpetrators have even purchased their own ATM machines and placed them in legitimate locations where unsuspecting consumers used them and had their confidential account information stolen.

What Can You Do?

It’s important to remember that the percentage of ATM transactions that are fraudulent is very small and in most cases your financial institution will reimburse you if you are a victim of one of these scams. To avoid becoming a victim of ATM fraud, there are common sense steps you can take to protect yourself: