ATM CASH-TRAPPING: THE ATM MAY HAVE YOUR MONEY–EVEN IF YOU NEVER RECEIVE IT
A warning from a lawyer: If an ATM doesn’t give you the cash you requested, don’t simply assume the transaction failed.
Most of us use ATMs without giving the machine much thought. We insert our card, enter our PIN, request cash, take our money and leave.
But criminals have developed a deceptively simple way to exploit that routine: cash trapping.
The concept is disturbing because the victim may believe the ATM malfunctioned when, in reality, someone may have deliberately interfered with the machine to prevent the cash from being dispensed.
How the scam works
In a cash-trapping scheme, criminals interfere with the ATM’s cash-dispensing opening so that the machine appears to operate normally but the money does not actually reach the customer.
The customer may see the transaction processed on the screen or even see the ATM attempt to dispense the cash. But the cash remains trapped.
The criminal’s objective is simple: get the victim to leave without realizing that the money is still inside or otherwise inaccessible.
Once the victim walks away, the criminal may return to the ATM and retrieve the trapped cash.
That is why this scam can be particularly effective. The victim may initially blame the bank, the ATM, or a technical malfunction.
The most important warning: Don’t walk away too quickly
Here’s my advice as a lawyer:
If an ATM does not dispense the cash you requested, treat the situation as potentially serious until you know what happened.
Do not assume that because the ATM says the transaction was completed, your money actually came out.
Before leaving:
1. Look carefully at the cash-dispensing slot.
2. Determine whether the ATM actually dispensed any cash.
3. Do not allow yourself to be distracted by another person while completing the transaction.
4. If something appears unusual, do not continue using that ATM.
5. Contact your bank or financial institution promptly.
6. Make a record of the ATM’s location, the date and time, and the amount involved.
7. Keep your receipt, if one was provided.
8. If appropriate, take photographs of anything visibly unusual without touching or attempting to repair the machine.
If you believe someone has tampered with the ATM, consider notifying the bank and local law enforcement.
Don’t let embarrassment work against you
One of the problems with scams like this is that victims sometimes hesitate to report what happened.
They may think:
“Maybe I made a mistake.”
“Maybe the ATM just malfunctioned.”
“I’ll call the bank tomorrow.”
That delay can make it more difficult to establish exactly what occurred.
If an ATM debits your account but you did not receive the cash, report it promptly.
Your bank may have transaction records, ATM logs, surveillance footage, electronic records and other information that can help determine what happened.
What about your legal rights?
This is where the situation becomes more complicated.
If your account was charged but you did not receive the cash, there can be a dispute over whether the transaction was properly completed, whether the ATM malfunctioned, or whether someone fraudulently interfered with the machine.
The legal and financial issues can depend upon the particular facts, the financial institution involved, the type of transaction and how quickly the problem was reported.
That’s why I would not recommend simply accepting an unexplained ATM debit as your loss.
Document it. Report it. Preserve the evidence.
And don’t wait unnecessarily.
A few seconds can make a difference
There is a larger lesson here.
Criminals often don’t need sophisticated technology to steal money. Sometimes they exploit something much more basic: our assumptions and our routines.
We assume the ATM worked.
We assume the money wasn’t dispensed because of a harmless malfunction.
We assume nobody is watching.
And we assume that walking away is harmless.
Those assumptions can cost you money.
Before you walk away from an ATM, look.
If you requested cash and didn’t receive it, stop.
Make sure you understand what happened before leaving the machine.
If your account has been debited for cash you never received, contact your financial institution immediately and document the incident.
And if something about the ATM looks suspicious, don’t touch it or try to fix it yourself. Move to a safe location and report it.
The bottom line
You don’t have to be paranoid to be careful.
You simply have to remember that an ATM is a machine handling your money—and, unfortunately, criminals sometimes target those machines and the people using them.
The best defense is awareness.
The next time you use an ATM, take a few extra seconds before walking away.
Those few seconds could save you far more than the inconvenience of making a phone call.
This article is intended for general educational purposes and is not a substitute for legal advice concerning a particular situation. If you believe you have been the victim of fraud or an unauthorized transaction, promptly contact your financial institution and, where appropriate, law enforcement.
