CYBER CRIME :- ATM FRAUD

 Computers also make more mundane types of fraud possible. Take the automated teller machine (ATM) through which many people now get cash. In order to access an account, a user supplies a card and personal identification number (PIN). Criminals have developed means to intercept both the data on the card’s magnetic strip as well as the user’s PIN.

In turn, the information is used to create fake cards that are then used to withdraw funds from the unsuspecting individual’s account. For example, in 2002 the New York Times reported that more than 21,000 American bank accounts had been skimmed by a single group engaged in acquiring ATM information illegally. 

A particularly effective form of fraud has involved the use of ATMs in shopping centers and convenience stores. These machines are free-standing and not physically part of a bank. Criminals can easily set up a machine that looks like a legitimate machine; instead of dispensing money, however, the machine gathers information on users and only tells them that the machine is out of order after they have typed in their PINs. Given that ATMs are the preferred method for dispensing currency all over the world, ATM fraud has become an international problem.

Search analysis reveals that the number of people searching for ATM Fraud is the highest in India all across the globe. Even our Electronic banking frauds report suggests how the humongous growth in ATM frauds have led to disruption in the banking sector which no agency is proactively addressing. Age old modus operandi and tactics are now being used in India to defraud innocent and cyber-unaware citizens of the country. 

   

As a group of self-driven cyber-activists, we have helped thousands of victims till date and also been able to secure relief for many of them.  Without clogging your screens any more, here is the list of 5 things that you should do:

1. Block your card: As basic as this may sound, many users do not block their cards right away when they lose money in an ATM fraud. Please be advised that most of these fraudulent withdrawals happen at odd hours in the night when you are asleep and unavailable to check your messages. One proactive step that you could take is to use cards that offer a facility for switching your card on/off for transactions. 
2. Collect data about all fraud transactions: Add up all the money that has been withdrawn from the transaction reference numbers and locations of ATMs and keep this as documented information. You may find this info on your net banking/m-banking account if you have them activated. In all other cases, you will need to obtain this from the bank through a passbook update/account statement. 
3. Report to your bank: Yes, you must report to your bank before reporting to the police. Now, many banks have a dedicated dispute form for reporting cases. However, in practice, we have observed that an application worded to suit legal requirements of reporting serves better and the probability of relief increases.  Attach all your documentation with the application and submit to the bank. But please make sure to take a written receiving from the bank for your application with the authorized personnel’s signature and bank’s stamp. 
4. Report to your local police station: No, you do not need to go to the cyber cell for reporting these cases. If any responding officer does not entertain your complaint and register the FIR, . Reporting an ATM fraud, as little the amount as it may be, is very crucial in order to suggest proactive policy measures to tackle this growing problem. So, it is our humble request to you to kindly take out some time and register the FIR. 
5. Follow up: Your first follow up should be with the bank in about 10 days. After a lapse of 90 days, however, you can give an application to the RBI Ombudsman near you about the dispute.