Javelin Strategy & Research has released on Tuesday a report regarding ATM fraud :In 2009, 10% of Fraud Victims in the U.S. Fell Prey to Increasingly Costly Fraudulent ATM Withdrawals.

The report is based on a telephone and online survey of 8,168 consumers . Twenty-three percent of those who experienced fraudulent withdrawals left their primary financial institution.
Key Report Findings – ATM and PIN Fraud

•    Nearly one in five fraud victims reported having their credit card PIN or debit card ATM PIN information stolen in 2009, which is a considerable increase over 2008.
•    Over seven in ten consumers have some level of trust of bank-branded ATMs at branch locations. Bank-branded ATMs in stores or unbranded ATMs garner much lower levels of trust.
•    More than half of consumers use an ATM each month.
•    Consumers aged 18 to 24 use ATMs more often, sometimes share their PIN and are more trusting of unbranded, non-bank ATMs, making them particularly vulnerable to ATM PIN fraud.
•    Consumers are not consistently protected on ATM PIN losses. The research found Bank of America, Chase, Citibank and Wells Fargo are among the leaders covering debit ATM PIN losses; in general, other institutions cover PIN transactions at the register or online, but may not necessarily do so at the ATM.

“U.S. financial institutions should consider this a cautionary tale and learn from it,” said Robert Vamosi, Analyst, Risk, Fraud and Security. “They can reduce their own losses, build consumer trust and slow the exodus of defrauded customers by adopting progressive security technologies, covering ATM PIN losses and educating consumers.”