When the Automated Teller Machine, or ATM, was introduced some years ago, it was meant to facilitate financial transactions, decongest the banking halls, and for their owners to have quick access to their money as well as make life more convenient, among other factors. The introduction of ATM terminals as a banking instrument at designated public buildings was therefore proved to be a welcome relief to customers because of its utility as an alternative to the frustrating queues that hitherto characterized banking services, especially in developing countries such as Nigeria.

The ATM uses a computer chip with embedded data that provides bank customers with easy access to financial transactions in a public space without the need for direct contact with a cashier or bank teller. For a customer to cash money from his account through the ATM, he requires to insert the plastic ATM card which contains unique and supposedly secure information such as the holder’s Personal Identification Number (PIN) and expiration date. Given the benefits of ATMs, it came as a surprise when the Central Bank of Nigeria (CBN) issued a deadline (extended to August 31, 2009) for banks to remove ATMs from public buildings, including hotels and airports.


In spite of the convenience provided by ATMs, the rate at which cases of ATM-related frauds are reported by customers to their banks has become a source of serious concern to the users and the banks that provide such services. The incidence of ATM frauds has grown to become one of the most common white-collar crimes confronting the banking industry in recent times. Some of the frequent causes of ATM frauds have been identified to include customers’ carelessness with their smartcards and PIN details as well as their indiscrete response to unsolicited electronic mails and text messages. IT-savvy fraudsters send scam e-mails to extract card information from unsuspecting people. The banks, too, open a window for fraudsters in their indiscriminate issuance of cards to customers without regard to their ability to utilize them. Furthermore, it was recently noted at the 12th Quarterly General Meeting of the Committee of Chief Inspectors of Banks in Nigeria (CCIBN) that the lack of co-operation among banks in the fight to stem the incidence of ATM frauds plaguing the industry is helping to abet it. The various ATM service providers, whose fierce competition for market share makes the possibility of a united attack on the menace of ATM fraudsters impossible, are another factor that sustains the peril. The responsibility for keeping people’s money safe whether in the vaults or embedded in ATM cards, rests squarely with the banks. , Dailytrust


Tell us your story if you were once a victim of ATM fraud

The latest technology with ATM now allows you to pay bulk money into the machine without going to queue at the bank. That's a trend we should be treading, not saying that ATMs should be removed from the streets. Are we going forward or backward? This is 2009. Set up practices to combat with the growing crime rates and put up practices that will encourage we Nigerians to grow in science and technology plus arts (i.e our culture not left out). But first of all, we need Electricity to be Electricity. Now, its Eccentricity. aghhhhh! - This is 2009