“…criminals retrofit ATMs with a card reader that stores the magnetic information of customer cards. They then put that data onto a blank card to make transactions — or 
cash withdrawals. For withdrawals, they also install a small camera to capture the customer typing in the PIN. Thus, with a small investment of time and equipment, they have everything they need to grab cash from the bank accounts of unsuspecting ATM users…”
According to the BBB alert, “ATM skimmers are close to reaping $1 billion annually from unsuspecting consumers. Javelin Strategy & Research estimates that one in five people have become victims.”
It’s hardly an urban myth. In fact, I think I am revisiting my previous paranoia and considering becoming yet more cautious. Installing a skimming device and a camera is a quick operation, so even the ATM I prefer in the well-lit parking lot of my own bank could fall prey. According to the BBB, in addition to using ATMs that are clean, well lit, and in good repair, I should give it a good visual examination each time I use it. If part of the reader apparatus seems loose, move on — or pull on it and see what happens.
In May, a Florida man did just that. His bank’s ATM looked wrong. He tugged on a part that looked loose — and it came off in his hand. It was a skimming device. His “paranoia” allowed police to shut down that particular operation a mere 10 minutes after it had been set up, thus saving any number of people from being scammed.
For more:Â http://www.pcworld.com/article/209959/atm_skimming_cash_machine_paranoia_justified.html
