Cashpoint criminals are scanning your PIN code

Criminals have stolen thousands of pounds from cash withdrawal machines using a hi-tech trick that leaves bank users unaware they have been robbed, the Evening Standard reveals today.

The thieves are fitting micro scanners and cameras to hole-in-the-wall machines in a swindle that marks a new level of sophistication in bank card fraud.

Previously criminals have actually had to get their hands on a victim's card but the new scam allows them to clone cards and record PIN codes without having to be in the vicinity of the cash machine.

With a dummy card and the cloned PIN code, the victim's bank account can then be emptied. The criminals have targeted cash machines at supermarkets and petrol stations, which are under less supervision than automated telling machines at bank branches.

Detective Inspector Roger Cook, from City of London Police's fraud squad, said five people have recently been arrested for taking part in card skimming using the new card readers fitted to cash machines.

"The gangs involved are mainly Eastern European and are connected to people smuggling," said Mr Cook. "Many of the people they use have entered the country illegally and have become involved in order to pay off debts to the gang. Much of the money that is gained appears to be invested in sophisticated new equipment such as pin-hole cameras that relay images of the person tapping in their PIN numbers to laptop computers," he said.

The scam is part of a dramatic increase in fraud at cash machines, which has risen from £21.2 million to £29.1 million in the last 12 months alone.

HSBC bank admitted its customers are among those who have fallen victim to the new fraud.

A spokesman for the bank said: "We are aware of this problem and our machines are among those that have been targeted. We have been in touch with the police about it and it is something that we are working with them to tackle."

A National Westminster bank spokesman said it had also been hit by the scam and urged customers to be vigilant. He added: "These devices have been fitted to our machines. If you are at all concerned that something is wrong or suspicious about the ATM you are using, do not leave the machine or your card.

"Ask someone else to go into the bank for you to alert a member-of staff - or phone the bank or police from the machine. If this is not possible, contact your bank and the police as soon as possible."

The Association for Payment Clearing Services (Apacs), which represents the banking industry, said the problem of fitted devices had become more serious in recent months. A spokesman said: "We are seeing that criminals are targeting machines that are not as regularly checked by bank staff.

"We would urge owners of supermarkets and petrol stations to keep an eye on them to make sure they have not been tampered with."