Skimming scares off cash machine users

Lloyds TSB is installing anti-skimming devices on all its UK ATMs, as research reveals fraud is scaring people away from cash machines.

The bank conducted research that showed three out of four people worry about fraudsters copying their card details when they use a hole in the wall.

Lloyds TSB internet and ATM director Matthew Timms said in a statement: "There are over two billion ATM cash withdrawals every year and while the vast majority of these are problem free, there is no room for complacency."

Cash machine fraud totalled £65.8m last year, and one in four of those surveyed is more nervous about using cash machines than previously.

One in eight has started withdrawing cash from machines inside branches and shops - thinking these ATMs are safer - and one in 10 is now using cash machines less often.

Only just over a third reckon they'd spot a cash machine that had been tampered with, the Lloyds TSB research revealed.

In a skimming scam, fraudsters typically attach a device to the entry slot of the cash machine to record the details of cards' magnetic strips as they are inserted into the machine. A miniature camera is hidden overlooking the PIN pad which allows the criminals to capture the PIN number as well.

Fraudsters can then build cloned cards which they can use in ATMs to steal from accounts. Although many ATMs have been upgraded to accept chip and PIN cards, which should offer greater levels of security, if there isn't a chip on the card the machine will then read the magnetic strip instead.