ATM FRAUD Meaning and
Definition
-
ATM fraud refers to a criminal act in which unauthorized individuals use advanced techniques and tactics to exploit the vulnerabilities of automated teller machines (ATMs) with the intent to deceive, scam, and unlawfully obtain money or personal information from unsuspecting bank customers. ATM fraud is a form of financial fraud that has seen an increase due to the widespread usage of ATMs globally.
This type of fraud involves various methods, including skimming, card trapping, cash trapping, and shoulder surfing. Skimming involves using a device to capture card data, such as card numbers and PINs, when customers swipe or insert their cards into an ATM. Card trapping refers to trapping the user's card within the machine, preventing them from retrieving it while the fraudster collects the trapped card later on. Cash trapping involves blocking the cash dispenser or diverting cash without the customer's knowledge. Shoulder surfing, on the other hand, occurs when fraudsters observe customers entering their PINs, usually from a nearby location.
ATM fraud can lead to financial losses, compromised personal information, and identity theft. It is important for individuals to remain vigilant while using ATMs, ensuring they are aware of their surroundings and check for any suspicious devices or behaviors that may indicate fraudulent activity. Additionally, banks and financial institutions continually strive to implement preventative measures, such as sophisticated security technologies, regular monitoring, and customer education initiatives, to combat ATM fraud and protect their customers' financial well-being.
Etymology of ATM FRAUD
The etymology of the word "ATM fraud" is derived from the acronym "ATM", which stands for Automated Teller Machine, and the noun "fraud", which originates from the Latin term "fraus" meaning "deceit" or "cheating". Therefore, "ATM fraud" refers to deceit or fraudulent activities related to Automated Teller Machines, such as unauthorized access, identity theft, card skimming, or other forms of illegal activities targeting ATM users.
