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ATM Fraud: What You Need to Know About Its Legal Definition
Definition & Meaning
ATM fraud is a type of financial crime where an individual unlawfully accesses another person's bank account using their ATM card and personal identification number (PIN). This crime typically involves the theft of the ATM card, allowing the perpetrator to withdraw funds directly from the victim's account at an automatic teller machine (ATM). One common method of committing ATM fraud is through a device known as a "Lebanese loop," which traps the card inside the ATM. When the victim leaves the machine in frustration, the fraudster retrieves the card and makes unauthorized withdrawals.
Table of content
Legal Use & context
ATM fraud is primarily addressed in criminal law, as it involves theft and unauthorized access to financial accounts. Victims of ATM fraud may pursue legal action to recover lost funds or report the crime to law enforcement. Legal forms related to reporting fraud or disputing unauthorized transactions may be available through platforms like US Legal Forms, helping individuals navigate the process of addressing such incidents.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A person finds their ATM card missing and later discovers that someone used it to withdraw cash from their account without permission. This is a clear case of ATM fraud.
Example 2: A fraudster places a Lebanese loop device on an ATM, trapping a customer's card. When the customer leaves the ATM, the fraudster retrieves the card and uses it to access the victim's account and withdraw funds. (hypothetical example)
State-by-state differences
Examples of state differences (not exhaustive):
State
Key Differences
California
Stricter penalties for identity theft related to ATM fraud.
New York
Specific laws addressing electronic fraud and penalties.
Texas
Increased penalties for repeat offenders of ATM fraud.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Credit Card Fraud
Unauthorized use of a credit card to make purchases.
Involves credit cards rather than ATM cards.
Identity Theft
Stealing personal information to commit fraud.
Broader scope, can include ATM fraud as a subset.
Common misunderstandings
What to do if this term applies to you
If you believe you are a victim of ATM fraud, take the following steps:
Contact your bank immediately to report the unauthorized transactions.
Change your PIN and monitor your account for further unauthorized activity.
File a police report to document the fraud.
Consider using legal forms to dispute the charges or pursue recovery of lost funds.
For complex situations, seeking professional legal assistance may be necessary.
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