ATM FRAUD

In a span of three days Punjab National Bank’s (PNB) 61 account holders have lost approximately Rs 15 lakh due to fraudulent transactions.

• Crimes on account of online banking, mobile banking, phone banking and during usage of Automated Teller Machines (ATMs) are on the rise.
• People find the ATMs most convenient option for withdrawing cash using ATM cum debit cards or credit cards.
• Several instances are observed when fraudsters withdraw money from somebody else’s account.
• One such incident which has come to light is that of Punjab National Bank.
• PNB -Delhi’s Vasant Vihar branch has approached the police complaining that 61 of its account holders have lost approximately Rs 15 lakh to fraudulent transactions in a span of three days.

How it happened?

1. Account holders started complaining about the bank about ATM transactions which were carried out without their knowledge.
2. This was informed to the Police and a case was registered at the Vasant Vihar police station.
3. According to the reports, several customers approached the Manager of PNB’s Vasant Vihar branch in New Delhi on April 8, complaining about the unknown transactions being carried out from their accounts.
4. Police informs that the account holders witnessed multiple transactions being carried from various ATMs and which bank compiled a list of complainants and found that 61 people have lost the money from their accounts.
5. The bank further adds that the statement submitted to the police, reads the amount siphoned off as Rs 14, 97,769.
6. The team probing the matter is investigating from two angles. They suspect that
   1. This incidence is an act of skimming or
   2. There has been an internal leak od customers’ data from the bank.
7. Police are also looking at the possibility of an internal leak of the customers’ data, and are waiting for the report of an internal inquiry by the bank’s senior officials.
8. It is to be noted that the last year, diamantaire fugitive Nirav Modi and his uncle Mehul Choksi duped the PNB Rs 14,000 crore.

What is skimming

• The tricksters steal the card information by using a small device (skimmer) during a legitimate ATM transaction.
• Whenever the card is swiped at the merchant’s machine, skimmer steals the information stored on the card’s magnetic strip.
• It transmits the information to the fraudster, who then clones the card using this information.
• Tricksters attach the skimmer in the card slot of ATM’s or merchant payment terminals.

The Bank has informed that it is warning public from time to time about the identity theft and phishing scams.  Recently PNB has advised the customers to protect themselves from the theft of information and breach of data in three easy steps viz:

• Step 1: Enable auto lock for your devices
• Step 2: Use a PIN for your SIM to prevent people from making use of it, if stolen.
• Step 3: Set a password for your memory card