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All About SBI ATM Card Frauds

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Recently, several SBI bank account holders were panicked by viral post about SBI’s contactless card and SBI informed its customers about the ATM-related frauds. Read on to know more about it…

Recently, State Bank of India (SBI), sent mails to its customers warning them of ATM-related skimming frauds. The ATM skimming fraud have been on a rise since past several months. The SBI letter not only warns the users against this fraud, but also tells them how to report it and other redressal methods.

In fact, SBI lowered the ATM cash withdrawal limit to ₹20,000 a day, from ₹40,000 effective from October 31, 2018. It was due to ATM card skimming that SBI lowered the daily cash withdrawal limit for the ATM users.

Here is everything you need to know about ATM card skimming, how to report such frauds and more

Starting January 1 this year, RBI disbanded all magnetic stripe ATM cards. These have been replaced with new chip-based cards. Skimming is the most common ATM fraud these days. Either ATMs or POS machines can be rigged and personal information can be stolen.

Methodology
ATM skimming is simply stealing of the banking details from the users’ ATM card. Criminals install small devices called skimmers into the card slot of ATM machines or POS terminals.

These skimmers capture the information stored on the magnetic strip of an ATM card. A camera installed somewhere above the keypad captures the ATM pin as the user enters it in an ATM or at a shop. These details are then used to clone cards to withdraw machines from other ATMs or do online shopping. Sometimes, criminals place a thin film on the ATM keypad or POS machines to capture keystrokes.

Misleading FB Post
Recently, a Facebook post in Marathi has gone viral, cautioning people who use the SBI credit and debit cards with WiFi symbol on them. The video in the post claims that by using these cards one can rob off money from your bank account as these cards do not need a PIN number. The person says that just by waving the card over the PoS machine, his money gets deducted. It doesn’t even require the PIN to authorize the transaction, he adds. To prove his point, the person puts in ₹10 as the transaction amount, moves his credit card over the PoS and gets a receipt from the machine. With this, he asks people to return their cards to banks or block it so that they do not get cheated. This video is also doing the rounds on WhatsApp.

Based on this, SBI said that lately most debit and credit cards with the WiFi symbol have been issued by the bank. This is the contactless or NFC-enabled cards. It is not just the SBI but almost all banks, including HDFC and ICICI, have started issuing these cards. NFC-enabled card allows a customer to transact by tapping it at the PoS machine. So, the customer does not have to hand over the card physically to a salesman during a transaction.

According to SBI and other banks, as per RBI guidelines, transactions of up to ₹2,000 can be done without PIN using contactless cards. Any transaction of more than ₹2,000 does require a PIN even in these cards. SBI also clarified that SBI cards with WiFi symbol on them cannot be robbed and the money from your bank account is safe and secure. In fact, the Near Field Communication (NFC) enabled cards or contactless cards is perfectly safe. Only a transaction below ₹2,000 can be done through these cards without a PIN.

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