As fears grew that scamsters have been at work in the Highland capital, ATM users were this week warned to be alert when they withdraw money. The Nationwide Building Society has decided to go public and warn of the scam risk uncovered by the Highland News after at least three of its customers in the city reported transaction irregularities with their accounts during the past month.

And clients of other banks and building societies in the city may also have been victims. Financial institutions often do not report such problems to the police.

But the situation emerging in Inverness has prompted the Nationwide to urge the public to be extra vigilant when using the hole-in-the-wall machines.

The building society fears the thieves could be using a hi-tech system to clone cards and copy the account details as well as secretly observe victims inputting their PIN numbers.

The method, known as ‘skimming’, involves a small device attached to the front of the cashpoint which looks similar to the original machine.

When a user inserts their card into the machine the device reads it as normal and allows the unsuspecting card holder to withdraw money. While the victim is using the machine, the card is being copied with all the details automatically recorded and saved. This allows the fraudsters to make a duplicate card and then empty the bank account.

A Nationwide spokesman told the Highland News it suspects skimmers are at work and there may be more victims out there.

He said: ‘Judging by the evidence presented to us, it is possible that a card cloning device could be in operation in Inverness.

‘We would ask the public to be extra vigilant when using any ATM, check statements for any irregularities and contact your bank if any are discovered.’ The spokesman added: ‘Card cloning and all other cases of identity fraud are industry-wide issues, the industry is working together to combat it and minimise the amount of incidents.

‘Cards can be compromised at cash machines - through skimming equipment, pin-hole cameras and other devices attached to ATMs to observe someone’s secret PIN code’

According to the Association of Payment Clearing Services, around £439 million was lost to card fraud in the UK in 2005 and cloning cost £96 million, 25 per cent down on the previous year’s total of £129 million.

The reduction has been attributed to the introduction of ‘chip and pin’ cards.

Evidence of this kind of crime first came to light in Scotland in 2004 when a customer discovered a tiny digital camera attached to a cash machine in Aberdeen.

The battery-operated device ‘ which took the form of a 30cm strip stuck to the top of the machine ‘ gave police a vital breakthrough in the fight against identity fraud.

Other incidents were reported throughout the country and the culprits were thought to be of Mediterranean or Eastern Europe origin.

Now there are real fears that slick operators are targeting bank customers at the Highland capital’s ATMs.

The Nationwide spokesman, however, had some comfort for victims of the scam.

He said: ‘If it can be proved the customer is completely innocent then we will refund the money to them. It would be very unlikely that an innocent victim didn’t get their money back.

‘The advice we give to people to keep their details as safe as possible is to follow the advice given on the Home Office website.’

Northern Constabulary community safety officer PC Donald MacDonald admitted this type of crime has been present in the country’s Central Belt for some time. However, he claimed there was no evidence of such a crime being perpetrated in Inverness.

He said: ‘Northern Constabulary do not believe this is an issue in the city because we have no records of any incidents of card skimming reported.

‘If any member of the public believes they have been a victim of this type of crime then they should come forward and we will deal with it appropriately.'

c.hay@highland-news.co.uk

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