Bankers, when was the last time your team checked the ATMs? Did they actually check it by putting a card in the slot? Often, bankers will go out every few days to make sure a scammer has not put a skimming device or mini cameras somewhere on, or near the ATM. But this story is something new that has not been seen before.
A San Francisco scammer recently targeted Chase Bank ATMs, using a clever scheme to defraud users of thousands of dollars. abc7’s Renee Koury reports that the thieves disabled ATM card readers by filling the slots with glue, forcing customers to rely on tap authentication instead.
Exploiting Tap-to-Pay for Easy Cash Withdrawals
The ATM ruse unfolded through an accomplice, stationed nearby, who would approach frustrated customers and suggest using the ATM’s tap feature. When customers completed their transactions and left, many unknowingly left their accounts open, allowing the scammer to withdraw cash immediately from the unattended machine.
How the Scam Affected Bank Customers
- Pamela Bonjourno, one of the victims, lost nearly $1,000. When her card wouldn’t work, a stranger advised her to use tap authentication. “It worked, and I got my cash,” she said. But the next day, she was stunned to find her account down by $940, with three unauthorized withdrawals following her own.
- Stephanie Berry was also taken, losing $400 after tapping her phone to withdraw $20. She noticed a man lingering nearby but didn’t think much of it. Shortly after, a fraud alert notified her of the theft.
- Gary Lee was similarly victimized. Struggling to use his card, he accepted help from a man who tapped it for him. The next day, Lee discovered his bank account had been drained, leaving only $5.
Safeguarding ATMs: Recommendations for Bankers
JPMorgan Chase has faced scrutiny in the past for various issues, including an unfair fees lawsuit. Initially, the bank was hesitant to reimburse victims of this ATM scam without clear evidence they hadn’t made the withdrawals themselves. However, as complaints grew, the bank refunded all reported losses and issued these safety tips for ATM users:
- Cover the keypad when entering your PIN.
- Check for hidden cameras attached to the machine.
- Avoid engaging with strangers at the ATM.
The complete details on this scam can be found at abc7.
