Sainsbury's Bank: ATM fraud up 260%

August 30, 2006

By Peter Kenny

Sainsbury's Bank: ATM fraud up 260%

New research from Sainsbury's Bank, show that cash machine fraud rose by 260% between 2000 and 2005.

In a further move Sainsbury's Bank have announced a £3.5 million investment on cash machine security for all of its 885 cash machines. The Bank aims to install additional CCTV and add new and updated anti-skimming devices. Over the last 7 months, Sainsbury's Bank has seen an increase of 7.5 per cent in the number of withdrawals made from their cash machines.

Sainsbury's Bank say that cash machine fraud amounted to £21.4 million in the first three months of 2006 alone, which is an increase of 54% for the corresponding period in 2005. Figures also show that ATM fraud has increased each year from 1996 to 2005.

ATM "skimming" is blamed for the majority of cash machine fraud. A criminal can "skim" a card by attaching a device to a cash machine, which records details of any cards used without the cardholders knowledge. A counterfeit card can then be produced and used to withdraw money from the unsuspecting victims account.

Sainsbury's Bank offers the following advice to cardholders on how to protect themselves from cash machine fraud:

  • If someone stands too close when using an ATM, walk away and use another
  • If there is anything unusual about the ATM, do not use it and report your suspicions to the bank
  • Never accept help from strangers when using an ATM
  • If a card is not returned by a cash machine, immediately report it to the bank
  • Check bank statements regularly and ensure that old statements are shredded
  • Report any lost or stolen cards as soon as possible
  • Memorise the card PIN – do not keep it with the card

Head of Channels at Sainsbury’s Bank, Kevin Barrett, said, “ATM fraud is a growing problem and one that we take very seriously.  We are committed to ensuring that through major investment in CCTV and new anti-skimming devices, our cash machines are among the safest in the country.  This, and the fact that we do not charge customers for accessing their money, has meant that over the last seven months, we have seen a 7.5% increase in the number of withdrawals made from our cash machines.”

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