ATM fraud is a generalized fraud covering many sub-types of frauds regarding physical ATM attacks. But most often, they involve hacking nowadays, since ATM machines are controlled with software, which might be vulnerable if exploits are found. Of course, there are also attacks which are more on the primitive side, like placing physical readers on the ATM to record the cards.
Skimming – This is a device that records both your card’s magnetic strip, and has a camera to record your pin. From both of those, they can create a duplicate card which they can use to withdrawal from even on the same machine. The issue here is that everything will look and act normal. You can make a deposit or withdrawal and you will still be able to do those actions just like if they weren’t there.
Shimming – Advanced form of skimming, but a lot dangerous, simply because, for skimming there are ways to detect if there is any devices on top of the ATM, while on shimming there are no such devices, because they are hidden inside the machine itself. That’s why they’re one of the most dangerous types of frauds.
Jackpotting – Does not affect the clients of the ATM in any way, rather, a hacker breaches into the ATM software to command it to give money out on demand.
You can protect yourself by inspecting the machine before using it. Skimming readers will always be on top of the keypad and the card reader. Against shimming, you can inspect the ATM machine closely for any cracks or if it looks like it has been modified, for example, the keyboard to be in worse shape or if it looks like it has been opened.