ATM Fraud Increases Over 300% in First Part of 2015

Earlier this year, Forbes reported that most of American corporations think they will be a victim of a data breach within this year. And many, particularly financial institutions are taking measures to beef up their card security in response. Most have been issuing new cards with chip-and-PIN technology that provide additional security to cardholders. These EMV (Europay, MasterCard and Visa) cards have already been issued to more than 120 million Americans. That number is expected to be closer to 600 million by the end of the year.

This is good news for many reasons. One in particular is because debit-card compromises at ATMs on official bank property increased between January and April by 174%, according to FICO (Fair Isaac Corporation).The number at non-bank property rose a whopping 317% during the same timeframe.

Therefore, it is important to always protect your card and PIN.

• Cover the keypad when entering your PIN, regardless of whether it's an ATM or a point-of-sale device.

• When choosing a PIN, use as many digits or characters as you are allowed and don't make it something that is easy to guess or find out, such as your house number or birthdate. 

• When performing an ATM transaction, do a quick check of the card slot to ensure there isn't a card skimmer on the machine. These can be difficult to detect, but if something looks strange about the machine, don't use it and report it to the financial institution right away.

• Be aware of your physical surroundings and if someone is nearby that causes you concern, don't complete the transaction and leave quickly.

• Use machines in well-lit areas.

• If you lose your ATM or any payment card, contact your financial institution immediately to report it. It's a good idea to jot down the phone numbers from the back of the card and keep them separate from your card in case you need them quickly.

According to a report in the Wall Street Journal, criminals will make successful ATM cash withdrawals this year of over $1.5 million. So, be sure to check all your payment card and cash withdrawal transactions diligently. Report anything suspicious to your card issuer right away.