Banking ombudsman report reveals rise in ATM fraud cases

Ombudsman (OBO) revealed that 21 speaking orders were issued by the office to banks against which complaints were received and an amount of Rs 9,52,200 was subsequently paid by the banks to the account holders.

Around ten complaints related to ATM fraud were also recorded in the previous year by the Ombudsman.

The nature of complaints that fall under the categories of ATM fraud are related to suspected cloning of ATM cards or fraudulent withdrawal. ATM card cloning follows a pattern and is not an individual incident. “If someone implants a device for ATM card cloning or skimming in a machine,within a few days many people will complain of fraudulent withdrawal from their accounts and the entire money in their account will be withdrawn,” said J Tashi,Banking Ombudsman.

However,not all cases eventually turn out to be genuine complaints. “There have been instances where a member of the family had withdrawn money from another’s account without their knowledge and a complaint was lodged for fraudulent

withdrawal,” said Narinder Singh,Deputy General Manager of Office of the Banking Ombudsman.

Singh elaborates that in a case of skimming,the colour of the ATM card is white and withdrawal is done at unguarded machines.

“These miscreants usuallywithdraw money during odd hours,they take a long time inside ATM kiosks,hide their faces with helmets or handkerchiefs and also cover the CCTV camera during the transaction,” Tashi added.

“The officials,therefore,advice that vigilance on part of the consumers is the best protection and that they should refrain from sharing their PIN number or transfer their card to any other person. They should visit the same ATM regularly and report any suspicious behaviour by anyone and should report any suspected fraud withdrawal from their account to the bank as soon as possible,” stated the Banking Ombudsman.

Tashi also advised that ATM fraud should be reported within a month to the issuing and acquiring bank. “If the claim is accepted and not resolved within ten days,then they are required to pay Rs 100 for each day,post the delay. This is done to ensure that the crucial time after the fraud is not lost as most ATM machines do not retain CCTV footage older than three months,” he added.