Financial Frauds are aggregating day by day. With the advent and rise of automated teller machines (ATM), gave another opportunity for fraudsters and thieves to steal money, account information. As an after effect of Demonetization there was extensive growth in the use of ATM and Debit Card. This gave an opportunity for the ATM fraudsters to exploit the system immensely. ATM frauds are subjected to ATM skimming attacks and social engineering attacks.
Criminals have also been known to use cameras positioned nearby an ATM machine that read the card information and record the pin number when entered by the cardholder. A clone, or duplicate, of the card is then made and used by the thief to make purchases or withdraw funds. This type of ATM fraud, however, has largely been replaced by more high tech gadgets known as card "skimmers."
Social engineering attacks are carried out by acquaintances or people who know the victim very well. Criminal impel the victim to reveal ATM pin by communicating with them or by gaining their trust. Proxy calls from imposters posing as ATM/Debit Card Company has risen drastically stating that the person’s card is blocked and in order to release it he/she has to provide Card details.
Card swapping is another attack which has come into existence. Whenever a person visits a restaurant or a petrol station and makes payment using a debit card the attendant (fraudster) records down the ATM PIN when it is keyed in by the customer. Later, while returning the card to the customer, the attendant swaps the customer’s card with a dummy card that is identical to the customer’s card. Since the customer is ignorant of the swapping, he secures the bogus card whereas the fraudster gets both the card and the PIN which he uses to withdraw cash till the card is blocked by the customer.