Bank Identity Theft
By Rick Hazeltine
Staff Editorial Writer
Most consumers consider their banks one of the last places where they would be vulnerable to identity theft. But bank identity theft through Automated Teller Machines (ATM) is becoming increasingly sophisticated.
According to the ATM Industry Association, more than $1 billion is stolen worldwide from ATMS. The most common form of this type of bank identity theft is skimming.
One of the more popular forms of skimming is for thieves to replace the front of an actual ATM machine at a bank or store. They also usually include a small camera that can record the customer putting in his PIN. The unsuspecting consumer then inserts a credit or debit card, and the information is recorded.
Later, the identity thieves return to remove the ATM device and make credit cards from the information recorded. Identity thieves can not only open accounts with the skimmed information, but they can clean out a consumer's accounts with the recorded PIN.
Earlier this year, it was discovered that identity thieves used a skimming device on ATMs in Staten Island, N.Y., to steal more than $500,000 from customers. Most of the money was stolen from victims' bank accounts.
One of the biggest problems is that the skimming devices are getting increasingly sophisticated to the point that it is difficult for bank personnel to detect them, let alone customers.
There are several ways you can protect yourself from ATM bank identity theft. Here are a few tips:
- The simplest way to avoid ATM bank identity theft is to use a free hand to cover the keypad while you punch in your PIN code. Identity thieves can't use the information on your debit card to drain your bank accounts if they don't have your PIN. ATM bank identity theft usually occurs when thieves use a pinhole camera, or the thief attempts to watch you input your code.
- Be familiar with the ATM you are using. Familiarity can go a long way to preventing ATM bank identity theft. If you are using an unfamiliar ATM machine, look over the card device. Many skimmers, although they may look real, are attached with just glue or even two-sided tape. If something looks suspicious, bring it to the attention of bank personnel.
- It's safer to use an ATM inside a bank rather than one on the street because it's much more difficult for an identity thief to tamper with a machine inside a bank.
