Beware of ATM scam

Those evil syndicates have been very busy again lately, victimizing innocent depositors and keeping our banks busy. The ATM scam is now again a big problem of our banks, but a quick check shows that this scam is now also prevalent in the United States and elsewhere where ATMs are commonly used for quick cash.

One thing is for sure, these degenerates have gotten very good at their game.  Less than 15 years ago, my wife Babes was driving by herself along Sucat Road one Sunday afternoon, on her way to National Book Store when she stopped her car in front of a bank with an ATM machine and proceeded to use her ATM card to withdraw some cash for her purchases. No one else was there, and there was no guard at the bank, it being a Sunday. When she inserted her card and pressed the amount desired, nothing happened. Thinking the machine was not working, she decided to just cancel the transaction and eject her card, but again, nothing happened. At this point, a man who looked harmless and was decently dressed approached her and appeared to help her, pressing buttons and apparently trying to disengage her card. He asked her to get any stick because the card seemed easy enough to pull out. About a minute passed and she decided to leave the area, leaving her card behind.

The following day, Monday, she went back to the same bank to report that her ATM card had been captured the day before, and could the bank please open the ATM machine to retrieve it? The staff was helpful, but upon opening the ATM machine, she was told that there was no card there. The staff apparently sensed something amiss and offered to print out her latest transactions and lo and behold, the printout showed several ATM withdrawals between Sunday afternoon and Monday morning, cleaning out her account. It was curious to note that the withdrawals were done in different parts of the metropolis, even going as far as Novaliches.

What was also curious was the bank apparently knew that the scam was already perpetrated in several instances but has not warned its depositors.  If they had sounded the alarm, it would have made the depositors more wary, more mindful of anything and anyone suspicious. This infuriated me and I was relentless in my forthcoming columns to alert the public about the scam and press the bank to face up to their obligation.  It took several months for them to acknowledge their shortcomings and refund the full amount, but something positive came out of this. Soon after the incident, big signs were posted in all of their ATM machines:  if your card is captured, immediately call this number.

The bank’s investigation showed that selected ATM machines were outfitted with rubber gadgets that acted as stoppers so that cash would not come out, and the card would be “captured”. Somehow, the PIN would be known to the guy waiting in the wings, and when the card is finally abandoned, they would be able to consummate the withdrawals.

Well, the scam is back, and with a vengeance.  Fifteen years later, the syndicates have also stepped up their scheme, using the latest technology to siphon out your money. What is alarming about it is, your ATM account is being cleaned out while your ATM card is safely and securely tucked in your wallet!

Talk about bad luck, but again, my wife fell victim to this scam. She was only alerted to it when the bank called up to tell her that a check she issued had bounced which made her rush to the bank and request for a printout of her transactions. As she feared, the printout showed several unauthorized daily ATM transactions, numerous times in a day. The helpful bank officer was unperturbed, informing her that the main office will conduct an investigation and within two days, she will be advised.

True enough, within two days, she was informed by the bank that her full account will be returned to her, even the service fees incurred for ATM use. 

So how does the present scam work?  According to the bank, certain machines have been compromised.  Why was the public not informed?  The accounts of persons using these compromised machines were hacked, so even if your ATM card is in your possession, they can withdraw from your account. The bank is now in the process of identifying these compromised ATM machines and replacing them, this time with more security features.  What is scary about this, however, is the fact that my wife only used a “safe and secure” ATM machine, which was located within the bank, a security guard standing outside the glass door to secure it. It makes you wonder how the rascals were able to carry out their plan and get away with it.

Some lessons have been learned from this latest experience.  First, never link your checking account, and most especially your savings account with an ATM account.  Limit the funds in your ATM account, keeping this to a minimum, just enough to serve you in emergency needs. A bank’s daily limit for withdrawals is P20,000.00, which, in the face of all these scams, now seems too big. Maybe the banks can bring it back to its original limit of P10,000.00/day.

The credit card companies seem to be more alert, aware of the dangers of scams. Unusually big transactions or unusual spending raise a red flag for them, so when this happens, expect a representative from the credit card company to verify the transactions with you on your cell phone before giving their approval. The banks would do well to learn a thing or two from them. Unusual ATM transactions, with several happening in a day, every day for days on end should raise a red flag as well. The card could be blocked until the depositor is advised by a bank representative. And lastly, the banks should be more transparent: at the first sign of a scam, this should be shared with the public so that the depositors are informed and aware.

Have you checked your ATM account lately?

Mabuhay!!! Be proud to be a Filipino.

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