Financial institution advises of potential scams
In a recent warning, the Sparkasse has alerted its customers to the recurring Cash Trapping fraud scheme. This scam involves criminals attaching a cover over the cash dispenser of an ATM, preventing money from being dispensed [1].
Perpetrators of Cash Trapping typically remove the cover and take the money left in the slot after customers leave the ATM. The cover used in Cash Trapping is lined with adhesive film on the inside, giving the machine the appearance of being defective [2].
If money is not dispensed, it is crucial to stay on the spot and inform a bank employee or call the police, especially if the machine does not display an error message on the screen [3]. If you suspect you have been a victim of fraud, immediately block your card and file a report [4].
Modern ATMs are equipped with security mechanisms to prevent fraud, but it is still important to remain vigilant and report any suspicious activity [5]. The Police Criminal Prevention Office of the Federal and State Governments emphasizes the importance of reporting any such incidents.
The Sparkasse offers several tips for protecting oneself from ATM fraud, though the specific tips are not detailed in this paragraph. These could include covering the keypad with your hand when entering your PIN, checking the cash dispenser of the ATM before withdrawing money by gently pulling or shaking the flap to see if it has been tampered with, and avoiding allowing strangers to approach you or lead you away at an ATM [6].
Banks can be held liable if an account is emptied through a Cash Trapping ATM scam, depending on the circumstances and applicable regulations. For example, in India, the Delhi State Consumer Commission ordered the State Bank of India (SBI) to refund a customer the full amount withdrawn fraudulently via ATM, plus 10% interest and compensation, after the customer proved unauthorized ATM withdrawals occurred and the bank failed to prevent or address them in a timely manner [1]. This ruling reflects the Reserve Bank of India’s "Zero Liability" guidelines protecting customers from fraud losses when they take reasonable care [1].
However, banks may not be liable if customer negligence is evident (e.g., sharing PINs or ignoring ATM security warnings) [2]. Therefore, it is essential to act responsibly and report any suspicious activity promptly to protect oneself from ATM fraud.
[1] Source: Reserve Bank of India’s "Zero Liability" guidelines [2] Source: Banking and ATM security guidelines [3] Source: Sparkasse's ATM security advice [4] Source: Sparkasse's fraud prevention advice [5] Source: Police Criminal Prevention Office of the Federal and State Governments [6] Source: Sparkasse's ATM security advice (implied, not explicitly stated)
- Stay vigilant and report any suspicious activity related to personal-finance at ATMs, such as Cash Trapping, to the bank or the police to prevent potential risk of loss.
- In case of any unauthorized transactions or ATM fraud, quickly block your card and file a report with the bank to minimize harm and ensure compliance with general-news regulations like the Reserve Bank of India's "Zero Liability" guidelines.
