ATM Fraud Law and Legal Definition
ATM fraud refers to fraud with the use of an ATM card whereby the perpetrator of the crime uses the card to immediately withdraw funds from a consumer account using PIN based transactions at the ATM. For instance, a perpetrator who manages to get an ATM pin number will use the ATM card at any automatic teller machine (ATM) to withdraw money from an innocent user’s bank account. Through ATM fraud, a perpetrator can even access the line of credit that is attached to an account. The common method adopted to get an ATM card by such perpetrator is to steal a customer's card. However the new technique adopted is to trap the card inside the ATM's card reader with a device called a lebanese loop. When the customer gets frustrated by not getting the card back and walks away from the machine, the perpetrator of the crime will remove the card and withdraw cash from the customer's account.