Most people are aware of the growing issue with cashless or ‘smagicless’ ATM withdrawals in the UK. On rare occasions, people are targeted for ‘bankfraud’ where cash is unlawfully obtained from ATMs. This is usually performed by individuals in a ‘posh mob’ type of behaviour where the suspect is seen ‘parking’ in a prominent location and ‘paparazzi-ing’ cash out of ATMs in a busy and fashionable area. However, many people have no idea that this is even a problem and certainly don’t know what to do about it.
Many major UK banks have stopped issuing cashless authorisations for withdrawals from ATMs. This is because they have been targeted by ‘bankfraudsters’ who have used the absence of funds to create fraudulent accounts in people’s names. While this might sound like a problem solely affecting the UK, the fact is that the issue has been growing rapidly around the world.
The Problem
There are a number of reasons why cashless ATM withdrawals are becoming a problem. One of the main reasons is the explosion of cryptocurrency usage across the globe. This is evident in the growing number of ‘ATM hacks’ where fraudsters have used cryptocurrency to perform illicit transactions. For example, in September 2018, Northumbria Police in the UK investigated a ‘mansion’ crime where £500,000 worth of Bitcoin was stolen from an individual’s home on the night of 11th September 2018. The police are still searching for the culprit or culprits responsible for this incident.
Many large cities have witnessed a rush of individuals purchasing cryptocurrencies in the past two years, leading to a huge spike in the number of ATMs available to the public. The reason behind this is simple; cryptocurrency provides a level of anonymity which allows people to purchase whatever they want without fear of being monitored by security forces.
The Solution
If you encounter this issue yourself, this article is for you. Here we’re going to discuss how to fix it and how to prevent it from happening again.
Firstly, you will need to contact your bank or credit card company and dispute the suspicious transaction. In some cases, customers have had to go through several months of rigorous bank reviews before the issue is resolved and the funds are returned to them. In the meantime, they have incurred costly fees and charges from both the bank and credit card companies.
Secondly, you need to contact the company which issued the cashless ATM card for your bank account. In many cases, these are credit card companies and in some instances, banking institutions. In both cases, they will need to verify that you are a legitimate account holder and that the money withdrawn from the ATM is rightfully yours. In some cases, this can be a lengthy and problematic process which is why we recommend contacting a professional debt advice service for help.
When To Worry
Although the above examples are of ‘bankfraudsters’ targeting UK banks, this is definitely not a problem which only affects the United Kingdom. In fact, the issue is growing rapidly throughout the world as more and more individuals look for ways to remain anonymous when conducting financial transactions. This is why we recommend contacting a professional debt advice service if you encounter this issue yourself.
We now live in a digital world where our every move is tracked by cameras and our every speech is saved for posterity. More and more individuals are seeking ways to stay anonymous when conducting financial transactions which is why many large banks have restricted the use of cashless cards to specified locations and times. In some instances, customers have been refused service entirely if they try to use a cashless card at an ATM which is also a bank.
Withdrawing cash in large amounts from ATMs in non-cashless environments is also becoming a criminal offence; this is known as ‘cash withdrawal lounges’ where individuals are allowed to withdraw large amounts of cash from ATMs in a ‘cashless’ environment. In some instances, offenders have been apprehended and jailed for their crimes. While this is a positive development, it highlights the growing desire for anonymity which individuals are seeking to maintain when conducting financial transactions. In some areas, this has led to ‘cashless cafés’ where customers can buy food and beverages using cryptocurrency instead of cash. In the same way, many travel agencies are now accepting cryptocurrency as a means of payment for airfare and hotels.
Global Issues
It is important to note that this is not a problem solely affecting the financial industry. In fact, the desire for anonymity when conducting financial transactions is extending to all walks of life. We’re seeing a lot of interest in ‘cashless holidays’ where instead of exchanging cash at each transaction, visitors to a certain location will be required to use cryptocurrency to make purchases. In some cases, this involves using a smartphone to perform complex financial transactions via a contactless chip in order to avoid touching the card and leaving a digital trail. This chip can be used to make purchases at retail venues and online markets.
Along with the increase in the use of cryptocurrency is the increasing popularity of ‘private’ or ‘encrypted’ wallets. These wallets are stored on a customer’s smartphone. While they provide a safe and secure way to store cryptocurrency, owners of private wallets must ensure they keep their device password-protected and secure from anyone who could steal their holdings. In order to transfer funds using a private wallet, the device must be unlocked and the PIN or pass phrase needed in order to access the wallet in question. This means the owner’s personal information is at risk of being accessed by someone who might steal their identity along with the their cryptocurrency.
The Bottom Line
In short, the issue is growing and it’s affecting individuals and businesses across the world. In some cases, ‘cashless ATM withdrawals’ have led to people being subjected to identity fraud where their personal information is used to commit crime. This includes theft and fraudulent activity where the individual is targeted for their wealth or to steal their cryptocurrency. Additionally, large-scale cash withdrawals are also an issue where ‘paparazzi-style’ behaviour is used to make off with large sums of cash. In some jurisdictions, this is a criminal offence.
While this might not affect you directly, it’s important to understand the reasons behind this increase in crime. Ultimately, we live in a world where everyone wants to be accepted and paid without having to provide too much information about themselves. This is creating a greater desire for privacy when conducting everyday transactions. Withdrawing cash in large amounts at ATMs has always been a source of criminal activity where anonymity is desired. In the near future, we’re likely to see this issue continue to grow and cause more problems for individuals and businesses alike.