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Generally, automatic teller machines (ATMs) can be a safe way to access money en route to a cash-only restaurant, say, or to conduct other banking transactions. But that doesn’t mean that theft, fraud, or other issues never crop up. They can and sometimes do.
That’s why it’s important to practice safe habits when using ATMs. Learn the ground rules here.
Key Points
• ATMs offer convenient cash access but require caution to avoid theft and fraud.
• Use ATMs in well-lit, busy areas, and cover the keypad when entering your PIN.
• Card skimming is a risk. Using ATMs inside banks may help you avoid this issue vs. using outdoor ATMs.
• Verify receipts and account balances to catch transaction errors when using an ATM.
• Avoid ATMs late at night or in isolated areas to reduce the risk of getting robbed.
What Are the Pros of Using ATMs?
ATMs can really come in handy in a pinch. For example, if you’re heading to a tag sale or the farmer’s market, chances are you’ll find an ATM on the way to take out some cash.
Here’s a closer look at why people use ATMs and what their advantages are:
• Easy to locate and are accessible in banks, stores, airports, and other locations
• Provide access to cash accessible when going to the bank isn’t possible
• May not charge fees if the ATM is in-network
• Makes depositing cash and checks possible
• Allows you to check your account balance on the go
For these reasons, ATMs can play an important role in facilitating your access to cash every day.
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What Are the Risks of Using ATMs?
As helpful as ATMs can be, people do look to take advantage of consumers using these machines. Unfortunately, ATM fraud and theft is common enough that consumers need to approach these devices with a measure of caution.
These are some of the risks associated with using ATMs that consumers need to be aware of to ensure their safety and financial well-being:
• Fraudsters can attach a card skimmer (thin, plastic devices that slip over the card slot) to an ATM to collect debit card information, which can lead to the debit cardholder’s financial loss.
• Errors can occur, such as deposits being counted incorrectly or checks being read wrong, which can cause problems with bank accounts.
• Power outages in the midst of a transaction can cause technical glitches and prevent deposits from registering.
• ATMs can dispense too much money, which may seem like a money windfall for the user but can result in legal trouble if the consumer fails to report the error.
• Because the person using the ATM has the ability to access cash quickly, they can be a target for robbers (especially late at night or at locations without much foot traffic).
• It’s possible to hit an ATM withdrawal limit or to overdraft, which can result in fees and other issues with your financial institution.
It’s wise to keep these downsides in mind so you can take steps to avoid them.
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Keeping Yourself Safe While Using an ATM
To stay safe and protect their financial health when using an ATM, consumers can practice the following habits:
• Use ATMs within bank branches, where card skimmers are much less likely to be found.
• Cover the keypad when entering a PIN to block others from seeing the code.
• Scope out any ATMs that aren’t inside a bank to see if there are any misaligned card readers or other signs of tampering.
• Always try to use ATMs during the day or in well-lit and trafficked locations.
• Visit ATMs with another person or when other people are around to reduce the likelihood of being a robbery target.
• Use an in-network ATM if possible to avoid ATM fees, which can add up and hurt your budget.
• Do a cardless withdrawal, which relies on mobile phone technology instead of a debit card so you’re not vulnerable to card skimming.
These steps can help you keep yourself and your money safe when using an ATM.
Are ATMs Safe From Being Hacked?
The practice of card skimming is the main reason some consumers wonder if ATM machines are safe from hacking. As briefly noted earlier, ATM machines can have card skimmers attached to them. These devices collect debit card information and can allow fraudsters to access the associated bank account. Unfortunately, skimmers can be quite sophisticated and hard for consumers to detect. Here are some ways to protect yourself:
• Using an ATM located within a bank can significantly lower the odds of interacting with a skimmer compared to accessing more isolated ATMs. Examples of isolated ATMs would be those located outside gas stations or similar sites.
• It’s also possible to find ATMs in other, safer locations, such as busy grocery stores and airports, where fraud may be less common due to the visibility of ATM machines or good security measures in place.
It’s worth noting that freestanding ATMs, the kind you might find at a convenience store or outside at a self-service gas station, may be hacked by criminals with wifi scanners and other tools to get past any less-than-optimal security protocols. For this reason, it’s wise to use ATMs that are part of a major network and securely built into a location whenever possible.
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The Takeaway
ATMs can offer a convenient way to quickly access essential banking services (and get cash) when you’re on the go. While usually a safe option, using an ATM does come with some risk of fraud and theft. Because of this, it’s important to practice safe habits when using an ATM, such as visiting one at a well-trafficked location and/or during the daytime.
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FAQ
Can you use an ATM at any time?
Some ATMs are open 24 hours a day, seven days a week, so it’s often possible to find one that’s accessible all the time. But because others can be located within larger retail spaces (such as malls) or banks, they may have limited operating hours. ATMs may also be closed during less popular hours (such as the middle of the night) due to higher crime rates in a specific area.
When is the safest time to use an ATM?
The safest time to use an ATM is during the daylight hours and in well-trafficked locations when there are many people around. Whenever possible, try to avoid using an ATM after dark, and if you must, it’s best to park close to the ATM and use it only if it’s in a well-lit area. Ideally, you should also bring someone else with you to help you appear less vulnerable to a would-be thief.
How can ATMs be made safer?
ATMs are safest when they are in highly visible, well-lit areas that make committing a crime less appealing to robbers due to an increased likelihood of being caught. Having security cameras surrounding the ATM can also help discourage criminals, including those who may want to apply a card-skimming device. In general, it’s wise to use ATMs that are inside financial institutions or in well-trafficked locations (such as your supermarket) vs. freestanding ATMs or ones found outside, say, self-service gas stations.
Using cardless withdrawal methods can also help you avoid the threat of card skimmers stealing your data.
About the author
Jacqueline DeMarco
Jacqueline DeMarco is a freelance writer who specializes in financial topics. Her first job out of college was in the financial industry, and it was there she gained a passion for helping others understand tricky financial topics. Read full bio.
Photo credit: iStock/Zorica Nastasic
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