The RBI Ombudsman Manual of 2010-11 discusses an interesting case of Fraudulent ATM withdrawals while ATM Cards are Safely in the Hands of Owners and they have not disclosed any PIN. This is for not just one or two customers but around 100 customers siphoned this way.
A series of complaints were received against a few banks alleging unauthorized debits in complainants’ accounts as a result of fraudulent withdrawals through ATMs. Considering the volume, value, timing and modus operandi of disputed transactions, the bank was advised to preserve camera footage and submit all documentary evidences relating to these transactions.
It was observed in all the cases that, a suspicious looking person having covered his face was in possession of multiple cards and he had made withdrawals of ` 20,000/- in successive transactions. In the absence of SMS alert facility, he succeeded in withdrawing almost ` 40,000/- every day using most of the cards till almost entire balance in the account was withdrawn or the accounts were blocked by the customer or bank.
Video footage also revealed that he chose midnight or early morning hours for these operations which allowed him considerable time to be alone inside the ATMs. On one occasion he carried out almost 40 transactions in a row using more than 25 cards.
RBI investigated the case and in view of the overwhelming circumstantial evidence suggesting that the withdrawals from ATMs were of fraudulent nature, awards were issued in all cases and banks were advised to pay the complainants.
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