ATM Fraud Explained: Common Types, Risks and 5 Effective Ways to Protect Your Money

by Jobuza Team | Jul 1, 2026 | BLOG, Trending News

Automated Teller Machines (ATMs) have transformed the way people access banking services. They provide quick, convenient and paperless banking facilities, allowing customers to withdraw cash, check account balances and view recent transactions anytime without visiting a bank branch.

However, the growing use of ATMs has also increased the risk of financial fraud. Fraudsters use advanced techniques to steal sensitive banking information such as ATM PINs, card details, and OTPs, which can lead to unauthorised transactions and financial losses.

With the rise in digital banking scams, it has become important for every bank customer to understand how ATM fraud works and learn the right ways to keep their money safe. Staying informed about new fraud techniques and following basic security practices can help prevent such incidents.

What Is ATM Fraud?

ATM fraud refers to illegal activities where criminals steal money or confidential banking information from ATM users. Fraudsters often use hidden devices, fake equipment, or social engineering techniques to access card details and misuse them for unauthorised transactions.

These scams can affect anyone using an ATM, making awareness and caution essential while carrying out banking transactions.

Common Types of ATM Fraud

Card Skimming

Card skimming is one of the most common ATM fraud methods. In this technique, fraudsters install illegal devices on ATM card slots to secretly capture card information. The stolen data is then used to create fake cards or make unauthorised transactions.

Card Trapping

In card trapping scams, criminals use physical devices to block or trap a user’s card inside the ATM machine. When the customer leaves to seek assistance or contact the bank, fraudsters remove the card and use it to withdraw money or access banking information.

Shoulder Surfing

Shoulder surfing involves secretly watching a user’s activities while they enter their ATM PIN. Fraudsters may observe PIN details directly or use hidden cameras to record sensitive information. They later use these details to access the account and carry out fraudulent transactions.

Phishing Scams

Phishing scams involve tricking users into sharing confidential banking details through fake calls, messages, emails or websites. Fraudsters often ask for information such as ATM PINs, OTPs, CVVs or card details by pretending to be bank representatives.

Once these details are obtained, criminals can misuse them for unauthorised transactions.

How Can ATM Fraud Affect Customers?

ATM fraud can cause serious financial and emotional difficulties for victims. Some common impacts include:

• Loss of money through unauthorised transactions
• Theft of personal and banking information
• Stress and anxiety while recovering funds
• Risk of identity theft
• Damage to financial security and confidence

Victims often spend considerable time reporting fraud, blocking cards, contacting banks and trying to recover lost funds. In severe cases, such incidents can create major financial challenges for individuals and their families.

5 Smart Ways to Protect Your Money from ATM Fraud

1. Check the ATM Before Using It

Always inspect the ATM carefully before starting a transaction. Look for unusual devices, loose card slots, damaged keypads or suspicious attachments that may indicate tampering.

Avoid using ATMs that appear damaged or located in isolated areas.

2. Protect Your PIN While Entering It

Always cover the ATM keypad while entering your PIN. This prevents hidden cameras or nearby individuals from viewing your confidential information.

If someone is standing too close while you are making a transaction, maintain a safe distance and avoid sharing any banking details.

3. Use ATMs in Safe Locations

Prefer using ATMs located inside bank branches, shopping centres, busy markets or areas with proper CCTV surveillance and security arrangements.

Avoid using ATMs in poorly lit or less crowded locations, especially during unusual hours.

4. Enable Transaction Alerts

Activate SMS alerts, mobile banking notifications and email alerts for your bank account. These notifications help you identify suspicious transactions quickly and take immediate action.

If you notice any unauthorised activity, contact your bank immediately.

5. Do Not Take Help from Strangers

If your ATM card gets stuck inside the machine, do not accept help from unknown people nearby. Fraudsters often use such situations to steal card details or money.

Always contact your bank’s official customer support number or visit the nearest bank branch for assistance.

Conclusion

ATM fraud methods are becoming more advanced with time, making awareness and careful banking habits more important than ever. By understanding different types of ATM scams and following basic safety measures, customers can significantly reduce the risk of financial fraud.

Protecting your money starts with staying alert, keeping banking information private and using ATMs responsibly.

RERA FAQs: 25 Important Questions Every Homebuyer Must Know Before Buying a Property

by Jobuza Team | Jul 1, 2026 | BLOG, Trending News

What Is RERA Act and Why Was It Introduced?

The Real Estate (Regulation and Development) Act, commonly known as RERA, was passed by Parliament in 2016 to improve transparency, accountability, and efficiency in India’s real estate sector. The main purpose of this law is to protect homebuyers and create a regulated environment where developers follow clear guidelines.

Before RERA was introduced, property buyers often faced problems such as delayed project completion, lack of proper information, changes in project plans, and financial losses due to developer-related issues. The Act was designed to address these concerns and provide better protection to buyers.

How Does RERA Help Homebuyers?

RERA gives homebuyers more confidence while investing in residential and commercial properties. The law ensures that developers provide accurate project details, follow approved plans, and complete projects within the promised timeline.

The Act also allows buyers to take legal action against developers in case of delays, misleading information, or violations of rules.

Which Projects Need Registration Under RERA?

According to RERA guidelines, residential and commercial projects with more than 500 square metres of land area or projects having more than eight apartments must be registered with the respective state’s Real Estate Regulatory Authority before they can be marketed or sold.

Developers are required to disclose important project details, including approvals, layout plans, construction progress, and expected completion dates, so buyers can make informed decisions.

What Information Must Developers Provide Under RERA?

Developers must upload complete project-related information on the RERA authority’s website. This includes approved plans, legal documents, project status, completion schedule, and details of the developer.

These disclosures help buyers verify project details before making an investment decision.

How Does RERA Prevent Misuse of Homebuyers’ Money?

One of the key provisions of RERA is financial security for buyers. Under the Act, developers must deposit 70% of the amount collected from buyers into a separate bank account.

This money can only be used for land and construction expenses of the registered project. This rule helps prevent fund diversion and reduces the chances of project delays.

What Rights Do Homebuyers Get Under RERA?

RERA provides several important rights to property buyers, including:

• Access to complete project information
• Right to receive possession within the agreed timeline
• Right to claim interest for delays
• Right to seek a refund in certain situations
• Right to file complaints against developers

These provisions ensure that buyers have legal protection throughout the property purchase process.

What Are the Responsibilities of Homebuyers Under RERA?

While RERA protects buyers, it also defines their responsibilities. Buyers must make payments on time, take possession of the property within the specified period, and complete required legal procedures such as registration of documents.

Are Real Estate Agents Covered Under RERA?

Yes, real estate agents dealing with registered projects are also covered under RERA. They must register with the concerned authority and follow the rules prescribed under the Act.

The law ensures that agents provide correct information and follow fair practices while helping buyers purchase properties.

How Does RERA Handle Delayed Projects?

If a developer fails to provide possession within the promised timeline, buyers have the right to claim compensation. They can either withdraw from the project and seek a refund with interest or continue with the project and receive interest for the delay period.

How Can Buyers File a Complaint Under RERA?

Homebuyers can approach their respective state RERA authority to file complaints against developers or agents. The authority is responsible for resolving disputes and ensuring compliance with RERA regulations.

What Are the Penalties for Violating RERA Rules?

RERA includes strict penalties for developers and agents who fail to follow the regulations. Penalties may apply for issues such as non-registration of projects, providing false information, or not following authority orders.

These penalties help maintain accountability in the real estate sector.

Frequently Asked Questions About RERA

The following 25 frequently asked questions explain important aspects of the RERA Act, including developer responsibilities, buyer rights, registration requirements, penalties, and complaint procedures. Understanding these rules can help homebuyers make safer and more informed property decisions.