No Card ATMs Are Here, As Well As No Card ATM Scams

Trying to ease your peace of mind by leaving your home? Leave your hefty wallet at home and take advantage of mobile technology to refill your empty pockets with cash.

Right. You no longer need to have a debit card with you to withdraw cash from an ATM. You just need your smartphone.

Major US banks began testing cardless ATMs in 2017. Look for the nearest ATMs on your bank’s website or app and you will likely find that most of them offer cardless cash withdrawals. Here’s what you need to know before you try.

How cardless withdrawal works

First, your debit card must be stored in the wallet app on your mobile phone. When you walk to an ATM, you hold your phone over the contactless symbol on the machine and access the corresponding card in your wallet. From there, you need to enter your regular PIN and choose how much money you want to withdraw.

Another type of ATM without a card works like this: you log into your bank’s app to request a one-time access code. You then use that code and your PIN to withdraw cash from the ATM.

Internationally, some ATMs have even more futuristic cardless features. In Brazil, you can scan your palm (it defines the pattern of your veins!) To get cash, reports the New York Times ; in some other countries, a fingerprint can be used instead of a card.

Security flaws of cardless ATMs

Although cardless ATMs are considered safer than using your physical card, the security of this method is still controversial. If you are worried about ATM skimmers or theft, you might feel relieved without risking it with your physical card. (You will, however, need to keep an eye on the phone, if you’re wallet is free.)

One early horror story about cardless ATMs was highlighted by the New York Times : A thief obtained a login to log into customer Chase’s online banking system, downloaded the bank’s mobile app to his phone, and used it at the cardless ATM. Almost $ 3,000 was stolen from this buyer.

New types of phishing scams have emerged that target these modern ATM machines. In one scam previously highlighted by Lifehacker, the scammers send customers text messages to the bank saying their account has been blocked. When you click the included link to enter your account information and “unblock it,” the scammers receive your information. Banks may send you alerts, but never those that ask for your account number or social security number to verify your identity.

In a more sophisticated crime, scammers who gain access to your account can add their phone number to your account and then use their own phone to access your ATM cash.

How to use cardless ATMs safely

The healthy financial security habits we generally recommend, such as checking bank accounts frequently and freezing credit, may not be enough to identify the immediate problems that arise from cardless ATM fraud.

To keep your information and valuable liquid assets safe, use 2-Step Verification, if available, to log into your online bank account. If you receive a text message with a code you did not ask for, please ignore it.

Using biometric authentication – fingerprint or face – to access your mobile wallet is a good rule of thumb (pun is absolutely accurate).

Finally, subscribe to security notifications for your bank and credit card accounts. The most common fraud alert is when your bank sends you a text message if it notices an unusual transaction. But you can also set up notifications for various trigger actions, for example, every time a debit or credit card is charged, or if there is an ATM charge in excess of a certain amount that you have set. You may be trying to turn off notifications on your phone , but when it comes to financial institutions, it’s better to get more information than just forget about the problems.

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