ATM fraud on the rise in the UK

British banks are planning to increase the amount of money they spend on ATM security following a rise in the number of 'card skimming' incidents over recent months.

The fraudulent activity involves attaching a small electronic device to the inside of the card slot on an ATM, which is able to read the information from the card.

The details collected can then be used by the fraudsters to create cloned cards, allowing large sums to be withdrawn from the victim's account without their knowledge.

Using this method, it is estimated that around £21.4 million was stolen from UK bank accounts in only the first quarter of this year, accounting for the majority of cash machine fraud.

The rise demonstrates the increasing sophistication of fraud attempts being made, with the development of new technology providing new opportunities for fraud, which banks are anxious to keep on top of.

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