Tiny camcorder steals information from ATM cards in San Luis Obispo

Posted: Jan 21, 2011 6:53 PM by Nancy Chen
Updated: Jan 21, 2011 9:18 PM

Sophisticated techniques in debit card skimming machines

A.T.M.s are full of cash, ready to be easily withdrawn.

The problem comes when it's not actually you getting your money.

Three out-of-towners were arrested this week in the theft of information from about a hundred A.T.M. cards in San Luis Obispo; it was through skimming devices at Chase Bank on Madonna Road.

The suspects withdrew about $58,000 in cash from those cards; they also targeted another A.T.M. machine in Atascadero.

"They literally go to the A.T.M. like it was you, put in the card, put in the PIN and get the money," said San Luis Obispo Police Lt. Bill Proll.

Police say that the suspects put a skimming device inside of a card reader used to get inside of an A.T.M. vestibule after hours.

Police say the suspect first got card numbers from the device and recorded PIN numbers from a tiny camera installed onto a panel above the A.T.M.

"So now, the crooks had both parts," Proll said. "They had your number that's on your magnetic strip that's on your A.T.M. card, and they had your pin number. And that's all they need."

Police say they then transferred that information to a blank A.T.M. card to withdraw money from accounts.

They also say there's really only a few ways to protect yourself.

They say to completely cover your hand when entering your pin number and use A.T.M.s during business hours so you don't have to swipe your card through anything.

They also say to double check your statements for anything unusual.

Still, some Chase Bank customers say they still won't be on high alert.

"You're doing something that you engage in on a daily basis," said Brian Lee, who says he uses the A.T.M. there frequently. "It's like using the restroom, you know what I mean? I'm not trying to use the restroom secretive, you know? It's like, yeah, there could potentially be cameras when I'm using the bathroom, but you get what I mean?"

Not all of the victims have been contacted yet.

The second A.T.M. was in Atascadero at the Chase Bank on El Camino Real.

Atascadero police are still processing how many cards--if any--were compromised there.

The three people arrested for using the A.T.M. skimmers are from Southern California; police found about $20,000 in cash in their belongings.

This wasn't the first case of skimming to hit the Central Coast; investigators found an illegal credit-card reading device installed in Atascadero in 2009.

It was at the Tesoro gas station on Morro Road; a technician found internal wiring issues that likely came from a skimmer.