ATM Scams in South Africa: Discovery Bank Warns of Growing Threats

ATM Scams on the Rise in South Africa: How to Protect Yourself

South Africans are facing a surge in ATM scams, with criminals employing increasingly advanced tactics to defraud unsuspecting consumers. Discovery Bank has issued an urgent warning, highlighting the need for vigilance against methods such as shoulder surfing, tampered ATMs, and money mule schemes.

Common ATM Scam Tactics

1. Shoulder Surfing
   Fraudsters observe victims entering their PINs at ATMs or on mobile devices. Once they have the PIN, they steal the card or device to execute unauthorised transactions.
2. Tampered ATMs
   Criminals manipulate ATMs to trap cards or cause malfunctions. They then offer to “help” the victim, discreetly swapping the real card for a counterfeit one. Armed with the PIN, they can drain accounts or make fraudulent purchases.
3. Money Mule Schemes
   Individuals are recruited to open bank accounts for criminal use, often under false pretenses or with financial incentives. These accounts are then used for illegal activities such as money laundering, exposing the account holder to severe legal consequences.
4. Card Skimming
   Skimmers are discreet devices attached to ATMs to capture card data. Paired with hidden cameras, fraudsters clone cards for unauthorised transactions.
5. Cash Trapping
   ATMs are tampered with to prevent cash from dispensing. After the frustrated victim leaves, the fraudster retrieves the trapped money.

Staying Safe at ATMs

To protect yourself from these scams, follow these precautions:

• Shield Your PIN: Always cover the keypad when entering your PIN, even if you appear to be alone.
• Inspect the ATM: Look for unusual attachments or signs of tampering before use.
• Avoid Suspicious Machines: If an ATM behaves abnormally, avoid using it and report it to your bank immediately.
• Decline Help: Never accept unsolicited help from strangers at an ATM, no matter how genuine they may seem.
• Secure Personal Information: Refrain from sharing banking details or transacting on behalf of others.

The Bigger Picture

ATM-related fraud is part of a broader challenge facing South Africa. According to the South African Banking Risk Information Centre (SABRIC), thousands of ATM fraud incidents are reported annually, with criminals constantly adapting their tactics.

Financial institutions, like Discovery Bank, urge South Africans to remain vigilant and proactive in safeguarding their finances. Simple practices like being cautious with personal information, avoiding suspicious ATMs, and rejecting offers of help can go a long way in preventing scams.

As criminals refine their strategies, consumers must stay one step ahead. Awareness and vigilance are key to protecting yourself from financial fraud. If you suspect any suspicious activity at an ATM, report it to your bank immediately and educate others about these threats.