Play your ATM card close to your chest and keep your code number secret - nobody is safe from ATM crime and it has cost some consumers their life savings.
ATM (Automatic Teller Machine) crime has been described by the Banking Adjudicator as one of the most frustrating problems with which his office has to deal.
Only 19 percent of ATM complaints reported to the adjudicator's office in the 18 months to April 1999 were resolved in favour of consumers, according to the first report of the Banking Adjudicator.
Neville Melville, who took up his position a few months ago as an independent adjudicator to deal with consumer complaints about banks, says ATM crime is widespread and victims are often very angry after being ripped off.
Consumers believe that banks have persuaded them to use ATMs (rather than tellers) and that this puts them at risk, he says. Banks, on the other hand, say it is up to consumers not to lose or lend their ATM cards or disclose their PINs (Personal Identification Number) and, if they do whether knowingly or unknowingly, a bank is not responsible for any losses suffered.
The Banking Code does not deal with the issue satisfactorily either, Melville says.
In terms of the code - to which all the banks subscribe - your bank will compensate you for any losses after you have reported your card lost or stolen.
But, even if people phone a bank to cancel their cards, it takes time to lodge a complaint and there are disputes between the banks and consumers as to exactly when the complaint was lodged.
What compounds the problem of ATM crime, Melville says, is that consumers do not realise how much money they stand to lose.
Many believe it is possible to make withdrawals of only R1 000 at a time, but are not aware, or have forgotten, that a bank may have waived this limit.
Melville says he knows of account holders who have to repay their banks amounts of R20 000 or R30 000 and yet earn only a few thousand rand a month.
If you are a victim of an ATM scam or if your card is lost or stolen, report it to your bank and cancel your card as soon as you can. Make sure that you keep a note of the name and telephone number of the person to whom you spoke.
Melville says he has seen cases where consumers have reported a loss or theft to a police station and the policeman has telephoned the wrong bank.
If your card is swallowed by an ATM, do not assume your bank has it. Criminals sometimes jam machines and retrieve your card after you walk away from the ATM.
Melville and his staff are putting together proposals for the banks on how the deal with rampant ATM crime. His long-term aim is to get the banks, the Banking Council, the justice system and the police involved in solving the problem.
The Australians, for example, have a comprehensive manual stating how such complaints should be investigated, he says.
Complaints to the Banking Adjudicator
You can take any problem you have with your bank to the Banking Adjudicator at no charge. The office of the adjudicator is open to individuals and to businesses which have a turnover of up to R3 million a year.
But Melville says he is not keen to take up complaints from organisations and individuals who clearly have the means to seek alternative remedies, such as going to court, to resolve their problems.
Larger companies have legal services as part and parcel of their business operations.
We would like to concentrate on assisting people who have no alternative avenues open to them, Melville says.
The Banking Adjudicator can be contacted by telephone at (011) 838-0035, fax at (011) 838-0043, or e-mail [email protected].
TIPS
Safeguard yourself against ATM crime by taking the following precautions:
* Carefully guard your card and Personal Identification Number (PIN);
* Make sure you leave an ATM with your own card in your possession. Card- swopping thieves are very slick;
* Arrange with your bank to lower your cash withdrawal limit to the minimum amount it allows;
* Only use well-lit, publicly-visible ATMs after hours;
* Be wary of people loitering at ATMs. Remember that criminals can be well dressed and very presentable;
* If you feel crowded by the people standing behind you while you are using an ATM, cancel the transaction and go back later;
* Check that you have removed your card from the ATM after you have finished your transaction;
* Do not let anybody distract you or assist you when using an ATM;
* Do not let anybody see you key in your PIN. Criminals sometimes watch machines with binoculars from surrounding buildings to obtain your PIN;
* If you lose your card or it is stolen, report this to your bank at once; and
* Keep a record of the name and contact numbers of the person to whom you reported the loss.