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The Kansas City metropolitan area has been hit recently with a rash of fraudulent ATM withdrawals by individuals who appear to be part of a nationwide fraud group that have hit several cities in as many as 10 states.
As of this date, at least 38 ATMs have been reported as having fraudulent withdrawals in the metro area. It is believed the suspects were able to “hack” into the computer systems that serve the POS (point of sales) system for several retail stores and retrieve the debit/credit card numbers and the PIN codes, in order to clone the original customer cards.
In other words, even though the victims still had their original card, the suspects were able to create a counterfeit card from the numbers stolen out of the store’s POS system. The suspects then went to many different ATM machines in many different cities and made fraudulent withdrawals at the maximum amount allowed. Unfortunately, the victims would not know money had been withdrawn from their account until the next billing statement had been received.
There is more than one way for scammers to obtain debit card account numbers and PIN numbers. One way is for the suspects to do as just described, “hack” into store POS systems and steal them. The suspects then “clone” the card by loading the numbers on the magnetic strip of a blank card. Another way for thieves is to rig a cellophane device inside the ATM card slot that will not allow the card to be removed by the customer, place a small camera close to the ATM machine in order to watch which numbers the customer punches for their PIN, wait for the customer to leave, go retrieve the captured card, and use it to make fraudulent withdrawals.
Another way thieves steal credit/debit card numbers is to use a small electronic device called a scanner. This technique is especially known to be used at restaurants. The server simply takes the credit/debit card, “swipes” it through the scanner that he carries in his pocket, then “swipes” it through the POS system to pay for the food, and gives it back to the customer. This is practice is known as “skimming.”
The best practice for credit/debit ATM card holders is to always pay cash or use a credit card in a restaurant, never use a debit card. Card holders should always discreetly input the PIN number of their card when using an ATM machine. One never knows who might be watching in person, or with a camera. Another important practice for card holders is to periodically obtain a personal credit report.
The Kansas City metropolitan area has been hit recently with a rash of fraudulent ATM withdrawals by individuals who appear to be part of a nationwide fraud group that have hit several cities in as many as 10 states.
As of this date, at least 38 ATMs have been reported as having fraudulent withdrawals in the metro area. It is believed the suspects were able to “hack” into the computer systems that serve the POS (point of sales) system for several retail stores and retrieve the debit/credit card numbers and the PIN codes, in order to clone the original customer cards.
In other words, even though the victims still had their original card, the suspects were able to create a counterfeit card from the numbers stolen out of the store’s POS system. The suspects then went to many different ATM machines in many different cities and made fraudulent withdrawals at the maximum amount allowed. Unfortunately, the victims would not know money had been withdrawn from their account until the next billing statement had been received.
There is more than one way for scammers to obtain debit card account numbers and PIN numbers. One way is for the suspects to do as just described, “hack” into store POS systems and steal them. The suspects then “clone” the card by loading the numbers on the magnetic strip of a blank card. Another way for thieves is to rig a cellophane device inside the ATM card slot that will not allow the card to be removed by the customer, place a small camera close to the ATM machine in order to watch which numbers the customer punches for their PIN, wait for the customer to leave, go retrieve the captured card, and use it to make fraudulent withdrawals.
Another way thieves steal credit/debit card numbers is to use a small electronic device called a scanner. This technique is especially known to be used at restaurants. The server simply takes the credit/debit card, “swipes” it through the scanner that he carries in his pocket, then “swipes” it through the POS system to pay for the food, and gives it back to the customer. This is practice is known as “skimming.”
The best practice for credit/debit ATM card holders is to always pay cash or use a credit card in a restaurant, never use a debit card. Card holders should always discreetly input the PIN number of their card when using an ATM machine. One never knows who might be watching in person, or with a camera. Another important practice for card holders is to periodically obtain a personal credit report.
Federal law requires credit report companies to give a citizen a free credit report annually.
A citizen can simply get online and go to www.annualcreditreport.com to request the report or call 877-322-8228. If the citizen discovers they are a victim of fraud in any way, they should quickly contact their bank and card company to stop the account, place a “fraud alert” notice with the three credit report companies, and make a police report with their local police department.
For the latest information regarding credit/debit card and ATM card fraud, log onto the Federal Trade Commission Web site at www.ftc.gov.
