According to a report, India’s cybercrime incidents have increased by almost 86% between March and April 2020. Cases of fraud, mainly skimming or ATM cloning, have witnessed a considerable rise during this period. Fraudsters have refined their methods over the years, making it increasingly difficult for ordinary individuals to identify when they are being deceived into compromising valuable personal details. Hence, one must learn how frauds of these sorts occur, what procedures fraudsters employ, and how to avoid falling prey to the same.
What is ATM skimming or cloning?
Cloning is a technique of copying debit or credit card data with an electronic device or software. Fraudsters usually gain illegal admittance to a card user’s account and clear out the funds. With the advancement of technology, scammers have come a long way in improving ATM card cloning methods. They use scanning or ATM cloning device to scan a card used for paying bills offline.
The same can also take place at points of sale or POS terminals. The individual at the POS terminal usually scans a card with the cloning device before he/she swipes it for payment processing. It can occur especially when the cardholder is standing at a distance from such a terminal.
To safeguard oneself from these scams, understanding the types of ATM frauds in India becomes essential.
What are the standard ways of ATM card cloning?
Take a look at the two most typical ways in which ATM card cloning occurs –
Skimming is a common technique of scamming ATM card users. The fraudster puts an ATM card skimmer at the card slot. This device scans the existing details in a card that’s swiped at the slot via its magnetic stripe. The fraudster then copies or clones this data in a blank card to carry out unauthorised offline and online transactions.
Besides staying vigilant while using the cards, a smart way to secure oneself from these frauds is by opting for an insurance plan. For instance, they can check for Pocket Insurance & Subscriptions from Bajaj Finserv and opt for a Wallet Care policy. It provides financial coverage against financial loss in case of theft or fraud. Moreover, it allows the user to block all payment cards with one phone call.
- Multiple cloning
Simultaneous to technological advancement, fraud techniques have also become refined. Increased cases of ATM fraud in India substantiate the fact. There are techniques to produce multiple copies of payment cards. This aids hackers to empty a victim’s account in no time. A conman can easily take out significant amounts before the victim can block his/her cards.
One can also avail a cyber security cover, which provides financial protection against cybercrimes like phishing, spoofing, simjacking, among others. Nonetheless, to ensure an ATM fraud loss does not take place in the first place, read along.
Things to check before using an ATM
The tool for skimming or ATM cloning is installed on the card reader area, as mentioned earlier. Thus, it’s preventable with vigilance. One can be careful before using an ATM by checking –
- Card insert slot
- Glue residue or tape on any section of the ATM
- Unwieldiness on the card insert slot or the PIN keypad
- Suspicious item hanging from the machine
- Any loose-fitting attachment
Apart from checking these parts, a card user should always review their transaction history regularly. If a fraudulent case occurs, an individual must inform the authorities without delay. Should fraud occur despite these efforts, individuals can receive financial protection if they have a fraudulent charges insurance cover. Following these steps would protect individuals from ATM cloning scams and/or the monetary loss, thereby.