Author: Charles Joe

                  HOW TO ENSURE SAFE SECURE ATM TRANSACTION

 The ATM is the new technology built for Quick, Easy cash transaction. Since it was invented, it has reduced long queue in the Banking halls worldwide The introduction of the Automated Teller Machine (ATM) brought succors to Nigerian banking environment as long queues in the banking halls began to decrease as most customer opt to transact through that direction. This relief however, did not last long as incident of fraud resulted in a decline in customer confidence on ATMs. This article identifies some of the common tricks that ATM fraudsters are using to fraud innocent victims.They uses the Mobile platform instead of the internet to complete the carding process.The following tips will Safe you from falling into fraudsters:First, be vigilant when you are in crowded ATM machine. Keep an eye out of the people around and note if there is any around who is not making any transaction or who appears to be working in a gang.Secondly, take out your card only when you reach the ATM machine and donot disclose the front or back of you card to any one.

Thirdly, shield the ATM keypad before entering your PIN.

1. Finally, choose a PIN that is not easy to guess and that involves the rapid movement of your hand across the keypad of the machine. Do not choose number such as 1111, 0000, 2233 but choose numbers that are very difficult to guess and that will move you hands all around the machine. Regulators als                                PHISHING

Recently, several ATM card customers have has received e-mails purportedly from Inters witch (The switching company in Nigeria) and the Central Bank of Nigeria, stating that there are has been an upgrade of service and in some instances that the company has improved it’s security features and hence the need for the customer to click on the link to ensure that he/she card is usable. The link appears to be very authentic and details requested on the website includes card number, card holder’s name, Personal Identification Number (PIN) and other details that the fraudster needed to make a copy of the card. Ones this data is received by the fraudster on this bogus website, the details are feed into a card encoding machine and encoded into the magnetic strip of any plastic card. This card becomes the ‘clone’ of the individual ATM card and is thereafter used by the fraudster to withdraw funds from any ATM machine across the country. These fraudulent e-mails are also called ‘Phishing’ e-mails. Years ago, they were in bad broken English and emanated mostly from Central and Eastern part of Europe and the erstwhile soviet Bloc Countries using ‘Yahoo’ or ‘Hotmail’ e-mail identities. More recently, the fraudsters have become more sophisticated in creating authentic looking e-mail IDs of the CBN and Interswitch. They have also created websites that appears genuine to the ordinary consumer. Consumers must be aware that Banks and card companies will never asked for a card holder’s PIN number and therefore are urged to call their bank on a Bank customer service line not on the number provided on the fraudulent e-mail and confirm the authenticity of the request. Consumers are advised to immediately delete such e-mails and advise friends to do same.

                             SURFING

Fraudster needs some critical data such as card number, expiry date, and the PIN number before they can clone the card. One of the simplest ways to get the information is to observe the card holder at ATM machine. Quite often, there are one or two members of the gang watching at ATM machine when it is crowded by customers. In most instances, these fraudsters are baby faced youngsters who one will never suspect. Quite often, they are seen punching away numbers in their mobile phones with the information that they have gained. The data is sent to a gang member who is typically in another state. Who rapidly prepares a clone card ( it only takes a few minutes to clone a card ones the data are been received) and he/she will set off to the closest ATM for withdrawal.

                       SOCIAL ENGINEERING

 In some instances, the fraudster tricks the card holder to show him/her the card. He lures the customer into conversation and comments on the state of the card-for example, that the card looks damaged and that the customer should change the card. The fraudster would then ask the customer to check the card for damage. The fraudster would have gained confidence from his pre using various tactics such as offering assistance to the customer who perhaps would have tried to use the ATM without success or perhaps the customer is not familiar with the use of ATM and needs assistance.

Social engineering is all about gaining trust hence, the fraudster poses himself as a member of the staff or even security guard, quite simply, and customers should not compromise their card to anybody. It is akin to cash-would you handover you wallet to a person you don’t know?

                                         SKIMMING
Skimming is a process where the magnetic strip at the back of your card is copied using a skimming machine. The major source of skimming is through merchant establishments where you hand over your card to the merchant and in some instances the card is taken out of your sight for a moment.

It is during this period that fraudsters are likely to copy the data from the magnetic stripe of your card after having watched you enter your PIN when he brings across the terminal to you. Restaurants, hotels and bars are the most common place where these types of transactions occur and skimming is likely to take place through assistance from dishonest employees. With card details and the PIN number, the fraudster is able to prepare a counterfeit card that is used to defraud the account.

More sophisticated skimming fraud occurs when a fraudster attaches a skimming device to the receptacle that receives the card at an ATM machine. This device is configured to look like a part of the ATM machine. The PIN number is observed by a member of the fraud ring and in the more sophisticated crimes, through a camera fixed by the fraudster in such a way that the key pad is tracked and the PIN is captured on camera. This sophisticated type of ATM fraud is popular in off-site ATMs where there is less security around the ATM.

Banks are however able to detect it nowadays through the use of Fraud Early Warning Systems (FEWS) which have the capability to data mine the transactions from a defrauded account over a period of time to arrive at the possible points of compromise.
There are a few simple precautions that can help you to avoid falling prey to skimming.

1.  When you use the ATM machine, check that the card slot does not have any attachment – most ATMs look similar. If you are uncomfortable – use another ATM machine.

At present, there is little evidence to suggest that skimming is prevalent in Nigeria. However, to be forewarned is to be forearmed!
Hacking – Online Purchases

The internet is now frequently used to make purchases and other transactions where the card is not physically presented to the merchant. These transactions are called Card Not Present (CNP) transactions.

All that is required for a purchase over the internet, email or telephone are your card details and PIN. Some cards have an additional 3 or 4 digit security code at the back which is used on such transactions.

The site where you use your card to make purchases may not be a secure site and any data that you enter onto that site could be compromised. In more sophisticated hacking crimes, websites of genuine and high profile merchants have had their systems hacked with fraudsters stealing thousands of customers’ card data in one attack. This data is then used to either prepare counterfeit cards or for further web purchases.For more and quick info www.affilliatecashpoint.blogspot.com

To protect against this type of theft, do not visit web sites that are not ‘secure’. Look for sites that have a ‘Verified by Visa’ or ‘MasterCard Secure Code’ sign for example. If you are unsure of a site, avoid making that purchase.

Carding
Carding is a process where the fraudster tries to verify the card details that are in his possession through making a small transaction, typically on the web, to check if the card details are genuine and that the card is not closed. Quite often a charitable institution website is used and a small charitable contribution is made by the fraudster. Once the transaction is successfully consummated, the fraudster knows that the card account is active and proceeds to defraud the account.

This is a common occurrence today where a number of websites are continuously used by fraudsters to break into customer accounts. Sometimes, the fraudster may only have the card number but does not have the PIN details and he keeps trying out different combinations in an attempt to guess the PIN. Alternatively, the fraudsteo have a role to play with regards to easy availability of card Encoding machine. In developed countries, these devices are illegal. However, today, they are available freely in Nigeria and off the Internet.

As an industry, Nigeria is moving towards a more secure ‘Chip and PIN’. The chip and pin stores data on the chip of the card rather than the magnetic strip of the card. This chip is similar to the chip used on mobile SIM card an is more difficult to clone. This the standard that the entire industry is moving towards. Pretty soon, magnetic strip cards will not be in use in Nigeria any more and consumers will once again enjoy the convenience of ATM transaction.www.mazimuminternetsecurity.blogspot.com

Be vigilant and make sure you protect your ATM card at all times.

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Article Source: http://www.articlesbase.com/technology-articles/secure-atm-transaction-1579810.html

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