While ATM fraud is not a new trend, it’s an ever-evolving one.

Most commonly known as skimming, early forms from the 1990s used replica devices or “fake” ATMs to capture card information. Today, we are seeing changes both technologically and geographically.

Easily purchased online for just a couple thousand dollars, skimming devices are becoming more advanced, smaller and better able to store more card data.

Check out how unassuming these devices can be. It’s easy to see how they go undetected.

This summer, the ATM Industry Association (ATMIA) reported that ATM skimming was growing:

• In Las Vegas, 75 skimming attacks were reported over a three-month period – a pretty significant jump when compared to the two or three annual incidents reported in prior years.
• In Sidney, Australia, the New South Wales Fraud Squad reported 60 skimming attacks from Jan-April 2009.

Warning your cardholders

Here are a couple of tips to share with your FI’s ATM users.

• Be alert and smart; if the ATM doesn’t look right, find a different machine.
• If you see anything unusual or suspicious around an ATM machine, or if you find unauthorized ATM transactions on your bank account, notify local law enforcement, as well as your financial institution and/or the establishment where the ATM is located.
• Always protect your PIN. Do not give the number to anyone, and cover the keypad while entering your PIN.
• When possible carry out your ATM transactions during daylight hours, as most ATM-related crimes happen after dark.