Stolen Chip & PIN: Can Cash be Withdrawn?

TL;DR

Generally, it’s very difficult to withdraw cash from an ATM using a stolen chip and PIN card without knowing the actual PIN. Modern ATMs have multiple security layers designed to prevent this. However, techniques like shoulder surfing, keyloggers (if used at compromised terminals), or sophisticated skimming attacks *can* compromise PINs. Contact your bank immediately if your card is lost or stolen.

How Chip & PIN Works

Chip and PIN cards store your account details on a microchip. When you insert the card into an ATM, the chip communicates with the ATM to verify the card’s authenticity. The PIN is used as an additional security check. The process involves dynamic data authentication (DDA) which makes it hard to clone cards.

Why It’s Difficult to Use a Stolen Card Without the PIN

1. Chip Authentication: ATMs verify the chip’s authenticity during each transaction. A simple copy of the magnetic stripe won’t work.
2. PIN Verification: The ATM sends encrypted data to your bank for PIN verification. Incorrect PIN attempts will block the card after a few tries (typically 3).
3. Online Processing: Transactions are processed online in real-time, meaning the bank checks if the card is valid and not reported lost or stolen.
4. EMV Standards: EMV chip technology creates a unique transaction code for each purchase, making it difficult to reuse stolen data.

Ways a Thief Might Try (and How They’re Prevented)

1. Shoulder Surfing: A thief watches you enter your PIN.
   Prevention: Shield the keypad when entering your PIN. Be aware of your surroundings.
2. Skimming: Thieves attach a device to an ATM that reads the chip data and records your PIN (often with a hidden camera).
   Prevention: Check for anything unusual on the ATM, especially around the card reader and keypad. Look for loose or damaged parts. Report suspicious ATMs to the bank.
3. Keyloggers: A device is installed inside the ATM to record keystrokes (including your PIN).
   Prevention: This is less common now due to increased security checks on ATMs, but still possible at compromised terminals. Use ATMs in secure locations.
4. Malware: Malware can be installed on the ATM software to capture card data and PINs.
   Prevention: Banks regularly update ATM software to prevent malware attacks.
5. Card Cloning (Less Effective Now): While cloning used to be a bigger threat, EMV chips make it much harder. However, older magnetic stripe data can still sometimes be misused.
   Prevention: Report lost or stolen cards immediately.

What Happens if the Card is Blocked?

If you enter an incorrect PIN three times, your card will usually be blocked by the ATM and your bank. You’ll need to contact your bank to request a replacement card.

Steps to Take If Your Card Is Lost or Stolen

1. Contact Your Bank Immediately: Report the loss or theft of your card. They will block it immediately.

   Call your bank's 24-hour hotline.

2. Check Your Account Statements: Look for any unauthorized transactions.
3. Report to the Police (Optional): If you suspect fraud, file a police report.
4. Monitor Your Credit Report: Check your credit report regularly for suspicious activity.

cyber security Best Practices

• Never share your PIN with anyone.
• Be cautious when using ATMs in public places.
• Cover the keypad when entering your PIN.
• Regularly check your bank statements for unauthorized transactions.