Watch out for glue and helpful strangers the next time you withdraw funds from an ATM machine – both are signs of the new “glue and tap” scam, according to reports.
ABC 7 and 7 On Your Side in San Francisco, Calif., reported about the scam in early March.
“So, I was using the ATM machine on the right-hand side,” Pamela Bongiorno told the outlets. “My partner was here, the guy next to him was here. I inserted my card, it didn’t work.”
Scammers have been putting glue inside the card reader to make sure it doesn’t work, a Chase bank manager explained.
“It looked like someone had stuffed a gift card in there and it was really sticky,” said Joey Mularky of his own experience getting scammed at Chase Bank.
Bongiorno said a man then offered advice, and told her to tap the card instead of inserting it. Tapping worked. However, when she looked at her bank account the next morning, she realized that $940 was gone.
Mularky and Bongiorno weren’t the only victims. Rob Bell lost $560. Justin Sindelar lost $960. ABC 7 reported others as well.
When they complained to Chase, the victims didn’t get far. Since the transactions were under $5,000, the bank would not review surveillance video. It said that police would need to request it.
“All three victims filed a fraud claim with Chase Bank,” said ABC 7. “All three were denied. The bank said the customers authorized those withdrawals.”
The ATM tap feature uses radio waves to allow bank customers to access their accounts. When this method is used, customers have to proactively log out of their account. Otherwise, it remains open.
“Chase did not say why multiple withdrawals did not trigger a fraud alert, or why the bank did not review surveillance video – but each transaction requires entering a PIN – which the thieves had apparently captured. So always, cover the keypad, and log out before you walk away,” said ABC 7.
Mularky decided to get his own proof of the scam after losing more than $1,600 and getting a claim rejection from Chase.
“They said the police have to request the surveillance video... it’s not stored at the bank,” he explained.
Every time he walked his dog, Mularky would secretly shoot video of the man who told him to tap his card before the money was drained from his account. Often, the man was lurking around the ATM and Mularky did get footage of the man scamming another customer.
“And then I told Chase (Bank), ‘Hey, I have this video, is this proof? And they said no. Just because you have proof of them doing it to someone doesn’t mean it happened to you,’” Mularky said.
That’s when ABC 7 and 7 On Your Side stepped in.
“We contacted Chase Bank,” said the outlets. “It reviewed his... case and this time he got a refund.”
Other scam victims were also refunded and Chase said it is making changes to prevent similar scams from happening in the future. However, ABC 7 said it is not clear how the bank investigates these claims or what the changes will be.
“It indicated it may change the way the tap feature closes out the transaction window,” said the outlet. ABC 7 also reported that consumer advocates said banks should not ignore evidence and are required by law to conduct a full investigation.
“When using an ATM, be vigilant in protecting your PIN number and making sure you have logged out of your account,” Chase said.
“I will never use that little tap function again,” said Bongiorno.
People can protect themselves from becoming a “glue and tap” scam victim by waiting “until the ATM displays the menu prompt asking if you are finished with your transaction,” according to Safe America Credit Union.
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