ATM fraud is a global issue predominantly caused by customer negligence and includes methods such as skimming, shoulder surfing, card trapping, transaction reversal fraud, and fake pin pad overlays. Skimming involves stealing data from card magnetic strips, while shoulder surfing entails observing PIN entry. Additional methods like card trapping physically retain cards to allow thieves to access accounts, and transaction reversal fraud creates the illusion that cash was not dispensed to illegally recredit accounts.

1. Types of ATM Frauds
Dr.N.RAMESHKUMAR
Assistant Professor
Department of Commerce with
Compute Applications
PSG College of Arts & Science
Coimbatore 641 014
TamilNadu, India

2. ATM Frauds
• ATM fraud is happening on a worldwide. The
following are the some of the frauds happening
while using self-servicing machines.
• Most frauds happen mainly because of negligence
of customers.
• Skimming
• Shoulder surfing
• Card Trapping
• Transaction Reversal Fraud
• Fake PIN pad overlay

3. Skimming
• Skimming is an act of
stealing information
through the magnetic strip
on the cards that are used
in ATMs.
• Skimmers are devices
used by gangsters to
capture the data stored in
the magnetic strip of the
card. It is the most
frequently used method of
illegally obtaining card
track data.

4. Shoulder surfing
• Shoulder surfing is the act
of direct observation,
watching what number that
person taps onto the keypad.
It is also possible through
the installation and use of
miniature video cameras
aimed to record PIN entry.

5. Card Trapping:
• Trapping is the stealing of the
physical card itself through a
device fixed to the ATM. It
may prove less fruitful to
criminals than skimming,
because the victims
immediately loses their cards
and are likely to quickly get in
touch with their banks
• Card trapping involves placing
a device directly over or into
an ATM’s card reader slot.
Such devices are designed to
retain cards after customers
insert them.

6. • Often a “helpful” thief will then suggest a customer
re-enter his or her PIN in an effort to attempt the
card’s return- of course, to no avail. Later, after the
unsuspecting customer has departed, the thief can
remove the trapping device or fish out the card.
Then, by entering the PIN that the thief has just
observed, the thief can access and withdraw funds
from the customer’s account.

7. Transaction Reversal Fraud:
• It involves the creation of an
mistake that makes it
emerge as though the cash
had not been dispensed.
• The account is re-credited
the amount withdrawn but
the criminal pocket the
money. It could be a grab or
a corruption of the
transaction message.

8. Fake PIN pad overlay
• A fake PIN pad is fixed
over the authentic
keypad. This over lay
captures the PIN data
and stores the
information into its
memory. The fake PIN
pad is then detached,
and recorded PINs are
downloaded.