How to avoid cash machine (ATM) fraud

Digital banking is the go-to for most people these days. It’s quick, convenient, and you can do it from your sofa. But it’s important to not forget that cash is still very much in use. Whether it’s for the local market, a taxi, or just having a bit of money in your wallet, making withdrawals from cash machines is still part of everyday life.

And unfortunately, they’re still a popular target for fraudsters.

In 2024, people in the UK lost £25.3 million to cash machine fraud. This big number is a reminder that even with all the tech security at our fingertips, we still need to be careful when it comes to cash.

What is cash machine fraud?

It’s when someone uses a cash machine to steal your money. But it’s not always as obvious as someone trying to grab your card. These scams are often subtle, fast, and easy to miss, until you check your balance and something doesn’t add up.

Here’s how they do it:

Shoulder surfing
This method is simple but effective. Someone stands close to you while you’re entering your PIN, memorises it, and then distracts you or pickpockets your card.

Entrapment devices
A sneaky bit of kit is placed in the card slot to trap your card. Meanwhile, a tiny camera or someone nearby watches you enter your PIN. Once you walk away, they retrieve the device – and your card.

Skimming devices
These are fitted to the machine to copy your card’s magnetic strip. A hidden camera captures your PIN. The data is then used to make a fake card, which is often then used abroad where chip and PIN isn’t standard.

It’s not just cash machines either…

Fraudsters will strike wherever they can:

• At the cash machine – someone hovering a bit too close.
• In shops – perhaps a quick glance over your shoulder or a phone camera aimed at your card.
• In public – entering card details on your phone or laptop? Be mindful that someone nearby might be watching.
• At parking terminals – a ‘helpful’ stranger offering assistance, who quickly vanishes with your card details.

How to protect yourself

Here are a few simple habits that can make a big difference:

1. Always cover your hand when entering your PIN.
2. Be aware of your surroundings. If someone’s too close, don’t be afraid to stop and wait.
3. Use contactless where you can – it’s quicker and safer.
4. Turn on transaction alerts so you’ll know immediately if something’s not right.
5. Use biometric security (like fingerprint or face ID) on your phone and in banking apps.
6. If your card gets stuck in a cash machine, contact your bank so they can immediately freeze your account and arrange a replacement. Or you can block it using your Online Wealth Services app.

Fraudsters rely heavily on distraction, speed, and our trust. But with a little awareness and a few smart habits, you can stay one step ahead. So next time you’re at a cash machine, take a moment. Look around. Cover your PIN. And if something doesn’t feel right, trust your instincts and walk away.

If you think you’ve spotted a fraud, block your card and report it immediately to your Private Banker or our Client Services Centre. If something doesn’t feel right, trust your instincts.

If you are ever unsure, Nedbank Private Wealth clients can contact us at +44 (0)1624 645000 (Monday to Friday, 8am to 8pm UK time, except for UK public holidays) or +44 (0)20 8167 3223 outside these hours.

For more tips and advice, visit our Protect Yourself from Fraud page .

References:
UK Finance Annual Fraud report 2025.pdf