Ninja Money Masters

ATM Now Means Automated Theft Machine

This week’s Time Magazine explains why the US is such a hot spot for crooks intent on turning bank ATMs into automated theft machines.  The main reason is that many European countries have stopped using cards with magnetic strips and have replaced them with cards that have embedded microchips.

The new type of card makes it  much harder to steal your information.  Canada is switching to these kinds of cards, too.  According to the VP for risk management policy at the American Bankers Association, US banks aren’t upgrading because it costs too much.  Surprised?!?  I’m not.

How to Protect Your Identity

Here are some precautions you can take to prevent identity theft:

• Carefully inspect the ATM before using it
• Shield your hand when typing your PIN
• Avoid ATMs at high traffic locations (they’re much easier to tamper with than ATMs at the bank)

If you see any glue marks or find any loose parts when you pull on the card reader slot, don’t use the ATM machine.

Limit Your ATM use

Here’s my advice:

• Use ATMs to get cash only in true emergency
• Get cash from bank teller instead or cash back from purchase at grocery store
• Carry traveler’s checks

In short, plan ahead to prevent disaster.

Here’s  more information on how to avoid identity theft.