5 Ways Banks Are Fighting ATM Fraud

5 Ways Banks Are Fighting ATM Fraud
March 14, 2019

Cyber hacking stories, unfortunately, seem to be in the news every time we turn on our TVs. Even more unfortunate is when these hacks happen at banks, or when they involve taking innocent person’s money. While individuals can incorporate tactics to fight off fraud, big organizations and companies have to fight back.

Banks need to do everything in their power to protect their customers because this can lead to the most change.

Here are five ways banks are fighting ATM fraud.

Mandating and enforcing ATM checks

A quick inspection of an ATM can increase the chances of a bank being able to catch skimming, which is a method thieves use to steal people’s data.

Not everyone is aware of skimmers. Not everyone can identify when an ATM’s credit card reader has been tampered with.

Banks are catching skimming devices by simply sending workers/checkers to ATMs routinely. It’s not an ideal method and takes workers away from other important tasks, but keeping consumers safe is the top priority — and until a more efficient method arises, this is one way banks are fighting ATM fraud.

Incorporating camera-based technology

Modern technology is helping banks with fraudulent behavior and acts.

All ATMs should have a bank surveillance system. Taking this technology to the next level, Verkada provides its customers with best-in-class surveillance with security in 4K. Verkada combines solid-state storage with intelligent, industry-leading cloud software, and large companies such as Equinox and Hilton have jumped aboard this next-level technology.

A typical ATM camera helps, but being able to identify fraudulent behavior through a 4K camera can help to better identify criminals and the entire area surrounding an ATM.

Incorporating the latest camera-based technology can go a long way in fighting ATM fraud.

Monitoring and flagging suspicious behavior

When suspicious behavior occurs on someone’s account, banks will monitor and flag this behavior by contacting the customer and informing him or her of this behavior and even putting a hold on the card/account.

While customers should be aware of transactions and monitor their accounts regularly, it’s a bank’s job to monitor accounts for suspicious behavior. In extreme cases, banks might decide to relocate ATMs that are constantly being hacked.

Every bank claims to protect its customers and their money, and it’s their job to do exactly that.

Educating their members

ATM fraud isn’t going anyway anytime soon, but many banks are educating their members and giving them information on how they can protect themselves. For example, covering their hands while they’re inputting their pin because skimmers can catch the numbers via camera.

Updating members about fraudulent protection and best practices are common. It not only spreads the message but shows customers their bank’s care and is providing protection.

Creating better cards

This concept is more complex and will take some time to catch on, although credit card companies and banks have already included one method: Putting chips on cards and phasing out magnetic stripe cards.

Taking it a step further into the future, Apple recently launched the Apple Card, which uses advanced security measures to protect cardholders. 

According to CNBC, “Purchases made with the physical card are secured with chip technology. And, the physical card has no numbers on it — no card number, security code or expiration date — making it practically impossible for someone to steal your information when you hand your card to pay.”

Apple Card is still new, so it remains to be seen how well it will work and whether other companies will follow along with this new type of card and security level.

Above all else, customers want to know they’re safe, and while fraudulent behavior still exists, banks are fighting ATM fraud in many different ways.

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Lois Stevens