ATM Fraudsters On Prowl, Banks Offer Cold Response To Victims

Have you ever experienced the distressing situation where your debit card gets stuck in an unguarded ATM, especially in an area prone to theft? If so, you are not alone. There are fraudulent individuals on two-wheelers who are targeting unsuspecting debit card users at unguarded ATMs, seeking to clone their cards or deftly replace them to steal their hard-earned savings.

However, the story does not end there. Moments after the card is replaced, the cardholder begins to receive notifications about unauthorized withdrawals from their linked bank account. By the time the victim realizes they have been duped, they have lost thousands to lakhs of rupees.

Although it may seem implausible, this scenario is indeed true. In various parts of the country, several gangs disguise themselves as helpers to assist debit cardholders who have forgotten their PIN for withdrawal. After dispensing the requested amount, the ATM screen displays the balance, phone number, and other account details. As soon as the victim realizes that something is amiss with the machine, two or three people intervene. While one of them engages the cardholder in conversation, the others replace the card with a fraudulent one.

Soon after, the funds will disappear and your registered mobile will receive notifications of withdrawals. By the time panicked customers contact the bank to block their card, they have already lost a significant amount of money. Unfortunately, deactivating the card is a complicated process as banks lack a dedicated line or team to manage such situations.

As you try to block your card, even more money is lost, leaving you feeling frustrated and helpless. You may recall the 'RBI Says...' or 'RBI Kehta Hai...', ad campaign, which urges you to approach your branch and file a complaint with the cyber crime branch to recover your funds. However, banks may respond with a standard answer that your PIN may have been compromised, making it impossible to refund your money. Similarly, the cyber crime branch may have a backlog of cases and may not be able to assist you.

If multiple banks are involved, coordination becomes another challenge. According to RBI data, in 2021-22, there were 65,893 fraud cases related to Card/InternetATM/Debit Card, Credit Card & Internet Banking, resulting in a loss of Rs 258.61 crore. Your case is just one among thousands, and getting your money back can be a daunting task.

Some customers have shared their experiences of being victims of card swapping at ATMs. For instance, a senior journalist in Delhi fell prey to this scam when his private sector bank debit card was replaced by a public sector bank's card at an ATM. The culprit pretended to help him retrieve his stuck card, but within 10 minutes of leaving the ATM, the journalist received withdrawal notifications on his mobile and realized that he had been duped. He immediately contacted the bank's helpline to block the card but was surprised to find that money was still being debited from his account as the bank's customer care took time to deactivate the stolen card. Despite having call details to prove his case, the concerned bank and the RBI Ombudsman did not take any action as the RBI had advised customers to file complaints as soon as possible.

The request for reversal of the money lost after the complaint deactivated the card was refused by the bank. "Complaint is rejected under Clause 16(2)(a) of the Reserve Bank - Integrated Ombudsman Scheme, 2021 : 'In the opinion of the Ombudsman, there is no deficiency in service," reply he received by the concerned Ombudsman.

On the same day, a comparable occurrence took place in East Delhi involving a housewife who visited an ATM of a public sector lender. Unfortunately, the fraudsters from the same bank replaced her stuck card and proceeded to make purchases by swapping the stolen card. The customers were alerted by a notification of the withdrawal, resulting in deactivation of the card after a loss of almost Rs 1 lakh. This incident highlights how fraudsters are constantly developing new tactics to cheat customers, while the grievance redressal mechanism is failing to keep up. To promote digital and cashless transactions, it is crucial for the grievance redressal mechanism to be more agile and responsive.