One of an occasional series
Okay, now that I’ve scared you half to death, here’s the good news: When it comes to ATM skimming, you’ve got a lot going for you. The odds, the banks and the federal government are all on your side.
You still need to hold up your end, though. How? By staying alert and being proactive.
Second of two parts.
The threat of ATM skimming is real, but the odds of you being skimmed are actually not that great.
It’s impossible to know how many skimming attempts are being made in what has become a global organized crime scheme, but according to Bob Bucceri of the Electronic Funds Transfer Association, “Your chances of being skimmed are about 1/10 of 1 percent.”
Given the hundreds of millions of ATM transactions taking place daily around the world, I’ll take those odds.
Next, while it can be tough to detect an ATM that’s been hacked, it’s not impossible. Things on ATM machines that look even slightly out of the ordinary may be a sign that a cash machine has been tampered with. Put your wallet back in your pocket and walk away.
That’s all it takes to thwart the bad guys.
If you do get skimmed, you’ve got some powerful allies, starting with your bank. As long as you report it in a timely manner, your account will be reimbursed. It’s their loss, not yours.
And if you think you don’t like getting ripped off, talk to a banker sometime. A single hacked ATM can cost a bank hundreds of thousands of dollars, so when it comes to skimmers, they don’t play.
Says Bucceri:
“They want these guys stopped. Remember the movie Butch Cassidy & The Sundance Kid? They’ll pursue these guys to the ends of the Earth.”
So will the FBI, the Secret Service and Interpol. When a skimmer sleeps at night, he may be counting detectives instead of sheep.
But the best thing for you is to not get hit in the first place.
AVOID GETTING SKIMMED
1. Closely examine every ATM you use, especially if it’s one you use regularly. Is there anything about it that looks a little off? Loose wires? Pieces of double-stick tape here and there? Parts of the machine loose? Parts of the machine to be of slightly different thicknesses, different colors? Mirrors over the keypad? A light that’s out? A little hole in an odd spot?
If there seems to be an unusual amount of resistance the first time you try to slide your card into the card slot, DON’T FORCE IT. Remove the card — and yourself — at once.
2. Trust your instincts. If there’s anything — absolutely, positively anything — about the machine or the surroundings that makes the little hairs on the back of your neck stand up, leave.
If you’re at a bank branch and one of their ATMs looks as if it’s been tampered with, tell the bank manager.
3. ALWAYS, ALWAYS, ALWAYS shield the keypad when entering your PIN number — with your other hand, with your whole upper body, if you have to. By any means necessary.
4. If you can, avoid using ATMs whose keypads emit audible tones with each keystroke. That’s done to benefit the blind, but it also benefits skimmers, who can record the tones with hidden microphones and compromise your PIN.
5. NEVER put your PIN number on your card.
6. Don’t use the same PIN number for all your cards. If you can’t remember all the different numbers, keep a list of them in your smartphone, but make yourself up a code so that only you know which PINs apply to which cards. Even easier, email the list to yourself and access that from your cellphone. But just as you shield the keypad on the ATM, shield that list!
7. Change your PINs often. And don’t use a PIN number that others could easily guess.
8. KEEP TABS ON YOUR ACCOUNT. Most banks these days will let you check your balances via your computer or smartphone. Do that “on the regular” — and if you’re traveling, do it daily.
Many banks will monitor your account and alert you, by phone or online, of any activity that looks unusual. Take advantage of this service.
Along these same lines, Bucceri offers this piece of advice: Keep your ATM receipts.
“Always, always, keep those receipts. If you suddenly find yourself with insufficient funds, how are you going to go back to your bank and show them that you’ve been skimmed if you have no record of your transactions?”
IF YOU GET SKIMMED
Okay, you’ve taken every precaution you can, and you get skimmed, anyway. How much money are you likely to lose?
The correct answer is: Nothing. Under federal banking laws, you’re covered.
“Regulation E of the Electronic Funds Transfer Act indemnifies consumers,” Bucceri says. ” When someone is skimmed, their first course of action is go back in touch with their bank. The bank has to make good on everything after the first $50. All banks that I know reimburse for the entire amount.”
1. Contact your bank immediately. Not after you get home. Not after you unpack. Now. Federal law requires you to report bank card fraud within 60 days of receiving your bank statement to be reimbursed. Don’t wait that long. In fact, don’t wait at all.
If you’re stuck for funds, ask your bank what help they can give you with access to at least part of your fund until you get home. Some US banks have reciprocal agreements with banks overseas that might enable your home bank to wire you some of your cash in an emergency.
That shouldn’t be an issue, however, if you follow the next piece of advice.
2. Bring financial backup when you travel. A bank card from a different account or bank, saved for emergencies. A few travelers checks that you can convert into cash. For that matter, bring a stash of cash that you can spend or convert into local currency in a crisis. Keep this backup safe and keep it with you, but don’t keep with your main travel funds/cards.
3. File a police report. Do this after you’ve contacted your bank. Give them the location of every place you used the card that was skimmed, the date and time. If you’ve followed Bucceri’s advice and kept all your receipts, this shouldn’t be a problem. Make copies of those receipts to keep for your records, in case want to keep them as evidence.
So long as American banks stick with outdated magnetic stripe technology on their bank cards, you will be vulnerable to skimming. But that doesn’t mean you have to be a victim. Says Bucceri:
“Take ownership of your accounts and your transaction. It’s your money, not the bank’s.”