As with any device containing objects of value, ATMs and the systems they depend on to function are the targets of fraud. Fraud against ATMs and people’s attempts to use them takes several forms.
The first known instance of a fake ATM was installed at a shopping mall in Manchester, Connecticut in 1993. By modifying the inner workings of a Fujitsu model 7020 ATM, a criminal gang known as The Bucklands Boys were able to steal information from cards inserted into the machine by customers.[72]
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As with any device containing objects of value, ATMs and the systems they depend on to function are the targets of fraud. Fraud against ATMs and people’s attempts to use them takes several forms.
The first known instance of a fake ATM was installed at a shopping mall in Manchester, Connecticut in 1993. By modifying the inner workings of a Fujitsu model 7020 ATM, a criminal gang known as The Bucklands Boys were able to steal information from cards inserted into the machine by customers.[72]
In some cases, bank fraud could occur at ATMs whereby the bank accidentally stocks the ATM with bills in the wrong denomination, therefore giving the customer more money than should be dispensed.[73] The result of receiving too much money may be influenced on the card holder agreement in place between the customer and the bank.[74][75]
In a variation of this, WAVY-TV reported an incident in Virginia Beach of September 2006 where a hacker who had probably obtained a factory-default admin password for a gas station’s white label ATM caused the unit to assume it was loaded with$5 USD bills instead of$20s, enabling himself—and many subsequent customers—to walk away with four times the money they said they wanted to withdraw.[76][77] This type of scam was featured on the TV series The Real Hustle.
ATM behavior can change during what is called "stand-in" time, where the bank’s cash dispensing network is unable to access databases that contain account information(possibly for database maintenance). In order to give customers access to cash, customers may be allowed to withdraw cash up to a certain amount that may be less than their usual daily withdrawal limit, but may still exceed the amount of available money in their account, which could result in fraud.[78]
n some cases, bank fraud could occur at ATMs whereby the bank accidentally stocks the ATM with bills in the wrong denomination, therefore giving the customer more money than should be dispensed.[73] The result of receiving too much money may be influenced on the card holder agreement in place between the customer and the bank.[74][75]
In a variation of this, WAVY-TV reported an incident in Virginia Beach of September 2006 where a hacker who had probably obtained a factory-default admin password for a gas station’s white label ATM caused the unit to assume it was loaded with$5 USD bills instead of$20s, enabling himself—and many subsequent customers—to walk away with four times the money they said they wanted to withdraw.[76][77] This type of scam was featured on the TV series The Real Hustle.
ATM behavior can change during what is called "stand-in" time, where the bank’s cash dispensing network is unable to access databases that contain account information(possibly for database maintenance). In order to give customers access to cash, customers may be allowed to withdraw cash up to a certain amount that may be less than their usual daily withdrawal limit, but may still exceed the amount of available money in their account, which could result in fraud.[78]