A large number of the fraudulent ATM withdrawals that take place occur while the card is still in your possession.

Somehow, somewhere, fraudsters get hold of the information contained in the magnetic strip at the back of your card together with your PIN.

Typically this happens, without your knowledge, at a tampered ATM.

Beating the system

In the course of one particular series of fraudulent transactions, a person, with his face covered, came in with multiple cards and made repeated withdrawals of Rs 20,000 in successive transactions.

In the absence of SMS alert facility, he succeeded in withdrawing Rs 40,000 or more every day, using most of the cards till almost the entire balance in the accounts was withdrawn or the accounts were blocked by the customer or bank.

Video footage revealed that he chose midnight or early morning hours for these operations which allowed him considerable time to be alone inside the ATMs.

On one occasion he carried out almost 40 transactions in a row using more than 25 cards.

All the complainants said they had not parted with their cards or PIN details and the cards were in their possession at the time the withdrawals took place.

Although banks typically take the stand that money cannot be withdrawn without the security of card and PIN details having first been compromised, in the case of this particular set of transactions, because of overwhelming circumstantial evidence, the Banking Ombudsman directed the banks to make good the losses.

Watch where you swipe

But this is not something you can count on. It takes a great deal of time, and there is no guarantee of a happy ending.

So be careful about where you insert your card, stick to tried and proven ATMs, keep up with SMS alerts or use other means to keep abreast of withdrawals on your account and, last but not least, change your PIN if you feel it might have been compromised.

> ranade@thehindu.co.in

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