ATM FRAUD: METHODS, PREVENTIONS, AND THE LEGAL FRAMEWORK

ENTRANCE

ATM fraud refers to illegal activities carried out through automated teller machines (ATMs). With advancements in technology, fraudsters have diversified and sophisticated their methods. This article will discuss common ATM fraud methods, preventative measures against such fraud, and relevant legal regulations.

ATM FRAUD METHODS

SKIMMING (CARD COPYING)

Skimming is one of the most common ATM fraud methods. Fraudsters copy card information using special devices they place in ATMs and use this information to produce counterfeit cards. This method is carried out especially by reading the information the moment users insert their cards into the ATM. Skimming devices are usually placed in the card slot and copy the card information without the user's knowledge.

SHIMMING

Shimming is a more sophisticated method similar to skimming. In this method, fraudsters steal information from chip cards through a thin device placed in the ATM card slot. Shimming devices have become increasingly popular because they are smaller and harder to detect. This method allows fraudsters to bypass the security of chip cards and steal cardholder information.

Card trapping

In card trapping, fraudsters use a device they insert into the ATM card slot to trap users' cards inside the ATM. When the user is unable to retrieve their card and is forced to ask for help, the fraudster takes advantage of the situation to learn the user's PIN or to retrieve and use the card. This method poses a serious risk, especially for users who are not careful.

SHOULDER SURFING

Shoulder surfing is when scammers stand physically near an ATM user, secretly observing them to learn their PIN. This method is often used in conjunction with other methods to obtain PIN information after card details have been stolen. Shoulder surfing is a simple but effective method used by scammers and requires users to be vigilant.

PHISHING

Phishing is a method where scammers attempt to obtain users' personal information by sending fake emails or messages. In this method, users are redirected to a fake bank website where they enter their card details and passwords. This information is then used by the scammers.

MEASURES THAT CAN BE TAKEN AGAINST ATM FRAUD

TECHNOLOGICAL MEASURES

• EMV Chip Technology: EMV chip cards are more secure than magnetic stripe cards. Banks encouraging the use of EMV chip cards and making ATMs compatible with this technology reduces the risk of fraud. EMV chip technology makes it more difficult to copy card information and provides an additional layer of security against fraud.
• ATM Camera Systems: Security cameras installed in ATMs help detect fraud attempts. They also make users more cautious when using ATMs. Camera systems are an important tool for identifying and apprehending criminals.
• Anti-Skimming Devices: Anti-skimming devices installed in ATMs detect and neutralize skimming devices. These devices enhance ATM security and prevent users' card information from being stolen.
• Password Security: It is important for banks to advise their customers to use strong, difficult-to-guess passwords. Additionally, changing passwords regularly is also crucial for security.

USER AWARENESS

• Password Secrecy: Users should cover their keyboards when entering their PINs at ATMs to prevent PIN theft through methods like shoulder surfing. Users should also check their surroundings and maintain privacy while entering their PINs.
• Suspicious Situations: Users should immediately report any suspicious devices or situations they notice at ATMs to their bank. Suspicious situations help in the early detection of fraud attempts.
• Choosing an ATM: If possible, ATMs located in bank branches should be preferred as they are generally more secure. ATMs in bank branches are usually better protected and have higher security measures.
• Education and Awareness: It is important for banks to educate their customers about fraud methods and how to protect themselves from them. This training helps raise user awareness and reduce the risk of fraud.

LEGAL REGULATIONS AND STRUGGLE

LEGISLATION IN Türkiye

Türkiye has various legal regulations in place to combat ATM fraud. Article 244 of the Turkish Penal Code regulates the crimes of unlawfully entering an information system and obtaining data. ATM fraud can also be punished under this article. Furthermore, institutions such as the Banking Regulation and Supervision Agency (BDDK) and the Central Bank of the Republic of Turkey (TCMB) have implemented various regulations to ensure the security of the financial system.

EXAMPLE OF A SUPREME COURT DECISION

The 15th Criminal Chamber of the Court of Cassation, 2014/19878 E., 2014/20238 K. , stated: “In the concrete case, following the appeal review conducted by our chamber of the court's decision dated 11.12.2007, the judgment dated 11.12.2012 was overturned on the grounds that the defendant's actions, taken as a whole, constituted the crime of theft by using information systems as defined in Article 142/2-e of the Turkish Penal Code. Following the reversal, the court found no error in its decision to punish the defendant for the crime of theft by using information systems.
Based on the trial conducted after the reversal, the evidence gathered and presented in the decision, the court's opinion and discretion formed in accordance with the results of the prosecution, and the scope of the examined file, the appeal objections of the defendant's counsel, which were deemed unfounded, are rejected, and the judgments are AFFIRMED unanimously on 02.12.2014.”

INTERNATIONAL REGULATIONS

ATM fraud has an international dimension, making international cooperation crucial. International security organizations such as INTERPOL and Europol cooperate in combating such crimes. Furthermore, international banking regulations and standards play a significant role in fighting fraud. For example, regulations like the European Union's PSD2 (Payment Services Directive 2) aim to enhance security in financial transactions.

INTERNATIONAL COOPERATION

International cooperation is a crucial factor in combating ATM fraud. Information sharing and joint operations between countries help prevent fraud attempts and apprehend criminals. This cooperation provides an effective defense against cross-border fraud activities.

TECHNICAL AND LEGAL SUPPORT

International organizations and financial institutions contribute to the fight against fraud by providing technical and legal support. This support helps banks and other financial institutions enhance their security measures and reduce the risk of fraud.

CONCLUSION

ATM fraud poses a serious threat to both individuals and financial institutions. Technological measures, user awareness, and effective legal regulations are critical in preventing such fraud. Cooperation among all stakeholders and continuous preparedness against new threats will increase the success of the fight against ATM fraud. Therefore, both individuals and institutions should increase their security measures and act consciously. Furthermore, international cooperation and regulations will continue to play a significant role in combating fraud. All these measures and efforts are necessary to ensure the security of the financial system and protect users. Since there are criminals who specifically target our elderly population, we must take steps to raise awareness among them. We should also urge young people and adults, in addition to our elderly, to be cautious when using ATMs and provide necessary warnings. When these measures are taken, the losses can be minimized.

Law Student Intern

Osman Recep Gülşen