HSBC UK pilot of new, industry-first technology reduces ATM “cash-trapping” fraud losses by 50%
HSBC UK is improving safety and service for customers with the roll out of new, industry-first technology across its ATM network following a successful pilot in the Central London area earlier this year.
An investigation triggered by an increase in the number of reported cash machine failures late last year suggested cash-trapping criminals were targeting a number of ATMs in Central London.
Cash trapping is one of several types of ATM fraud, and it’s not always easy to spot. Criminals will tamper with an ATM, preventing money from being dispensed to customers and making it appear as if the machine had simply gone out of service, leaving customers frustrated. The criminals then later return to collect the cash that had been trapped in the machine.
To help tackle the issue, HSBC UK teamed up with ATM industry partner Cennox to pilot new software specifically designed to prevent cash trapping.
The results were impressive: a 50% decrease in ATM cash trapping losses to criminals and an 80% reduction in data disputes across 50 cash machines in the Central London area.
Richard Harrison, Head of Branch Network, HSBC UK said: “Protecting our customers against the distress and inconvenience of ATM fraud is very important to us.
“We’ve now deployed the new technology to cash machines across the country, helping deter fraudsters and in turn improving safety and service for the public who rely on our ATM network.”
HSBC UK and Cennox are also collaborating with other financial institutions and law enforcement to share the learnings of the project, helping reduce fraud across the industry.
HSBC UK’s Top 5 ATM Fraud Prevention Tips:
- Never divulge your PIN to anyone, not even the bank or police, and always shield your hand when entering your PIN into a cash point or ATM keypad.
- Always look closely at the card insertion point of a cash machine before using it. If it looks like it may have been tampered with, do not use it and call your bank if it is safe to do so.
- If you realise the cash machine has been tampered with after you have inserted your card, contact your bank while still standing at the cash machine if it is safe to do so.
- If an ATM fails to dispense your cash, unexpectedly retains your card or appears to become “out of order”, contact your bank while still standing at the cash machine if it is safe to do so.
- Program your bank’s phone number into your mobile phone (usually found on the back of your card) so you’ll have it handy should you ever need it.
The team at Cennox are very proud to have worked in partnership with HSBC and achieved such impressive results. We are looking forward to continuing to help reduce fraud across the industry in the future.
Managing Director, Cennox
For more information on the different types of fraud and how consumers can protect themselves, visit HSBC UK’s online Security Centre.