A surprising case of ATM fraud was reported in Thiruvananthapuram, where two unidentified men managed to steal ₹2.52 lakh from an SBI ATM over a year, between June 2022 and July 2023. Here’s a breakdown of how they did it and what it means.
How Did the Fraud Happen?
The two men used stolen or lost ATM cards to withdraw money. But they didn’t take all the cash dispensed by the ATM. Instead, they left one currency note in the machine’s cash slot.
This tricked the ATM into thinking the transaction wasn’t completed, causing a “Timeout Error.” As a result:
- The withdrawal wasn’t recorded as successful.
- No money was deducted from the linked bank account.
This clever trick went unnoticed for almost a year because customers’ balances weren’t affected, and the discrepancy was only visible when the bank reconciled ATM cash records.
How Was It Discovered?
The fraud came to light when bank officials noticed differences between the cash loaded into the ATM and the recorded withdrawals. Initially, suspicion fell on bank staff due to the lack of evidence pointing to outsiders.
The investigation moved forward when CCTV footage was reviewed. The footage revealed two individuals frequently visiting the ATM and using multiple cards, some of which were stolen. Their behavior raised red flags, leading the bank to file a complaint with the Fort police.
What Legal Action Was Taken?
The Fort police registered the case under two sections of the Indian Penal Code:
- Section 406: Criminal breach of trust.
- Section 420: Cheating.
The police are working to identify and catch the fraudsters while trying to recover the stolen money.
What Can We Learn?
This case highlights how creative and sophisticated financial fraud can be. Here are some lessons and preventive measures:
- Banks:
- Conduct regular audits to catch discrepancies early.
- Implement advanced monitoring systems to detect unusual ATM transactions.
- Public Awareness:
- Report lost or stolen ATM cards immediately to your bank.
- Be cautious of where and how you use your ATM cards.
- Technology:
- Improve ATM error detection to prevent misuse of technical glitches like “Timeout Errors.”
This incident reminds us of the importance of staying vigilant, both as customers and financial institutions, to protect against fraud.
-
-
-
-
-
-
-
-
-
-
