2015 has highest rate of ATM fraud ever recorded

We all hope to open our bank accounts and see familiar transactions, but fraud can happen to anyone. According to FICO, 2015 had the highest number of reported ATM machine connected cases of fraud than ever before.

FICO card alert service reports ATM compromises in the United States rising 546% from 2014 to 2015. Most of these incidents occurred at non-bank ATM machines.

“What we mean by ATM compromise is physical locations that had a skimming device installed where we have confirmed fraudulent activity having taken place,” explained TJ Horan, Vice President of Fraud Solutions at FICO.

People trying to steal data install skimmers on ATM card slots or even at gas station pumps. In an effort to reduce fraud, many credit card companies have transitioned from magnetic strips to chip cards, which are more difficult to steal information from.

FICO recommends using only bank located ATM’s when possible to avoid fraud and also to have a security camera presence. They also encourage consumers to look for signs of tampering before inserting or sliding their card anywhere.

Typically by law, consumers are not liable for stolen funds from fraud as long as they are reported within 60 days of the skim.