13:03 24 November 2010
More and more people are falling victim to a cashpoint scam where fraudsters not only take your card details, but they also copy the card whilst memorising your PIN.
Experts are warning that, worryingly, those who use the faulty cashpoints have no warning signs that it has been tampered with until after they have inserted their card.
Even worse, some banks have been refusing to refund the money back to the account holders. Follow our guide on the warning signs and legal rights you have if you have been subject to card fraud.
How they get your details
Most fraudsters use cashpoints which are not attached to banks in order to carry out their deeds; they usually insert a device into the card slot which is able to read the card and its details.
When the victim enters their PIN, someone nearby may be looking over their shoulder to memorise it. After they receive their funds, the device holds on to their card in a loop whilst it finishes copying the details. Some fraudsters may at this point ask the victim if they want assistance and tell them to re-add their PIN so they can get a better look at what it is.
Technology now also allows conmen to place a fake keypad over and existing one which looks exactly the same and is impossible to spot. The keypad will then capture the PIN itself.
They can also gain the card by the customer walking away after they think their card has been eaten up by the machine.
Copying the card
The magnetic strip on your card is quite easy to clone and devices are often placed inside the card reader that can copy them.
These can be used in the US or other countries where the chip and PIN system has not yet been enforced.
The good news, however, is that the chip is harder to clone and therefore the fraudster would need extra skills in order to do this.
Since last November when the FSAs Payment Services Regulations was introduced, banks must now refund your money straight away if you have been a victim of fraud.
If they are unwilling to do so, they must first prove that you did authorise the transaction and that also you were careless in losing your information.
It is therefore essential that you alert your bank as soon as you notice something wrong with your account.
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