Jonathan Hall Uncovers: Counterfeit cash machines

Take a look at this ATM. It's on the sidewalk, right next to a restaurant. It looks like any other one you might see, right?

But be warned. If you try to use this machine, you won't get any cash, and you might get your identity stolen.

That's because this ATM is not legitimate. It's a used ATM that was sold online.

Robert Siciliano, IDTheftSecurity.com
"The ATM itself cost me $750 off of Craigslist. It was from a bar that was closing down."

Security expert Robert Siciliano bought the machine as research for his job, and when he got it home, he made a frightening find.

This device was full of stored data that was never deleted by the former owner. It still contained the credit card and debit card numbers of the people who used it. There was over 1000 numbers in five months in that machine.

7News found dozens of ATMs, both new and used, for sale online. And, what's more, Massachusetts has no rules about who can buy them or where they can be set-up.

So with the permission of the Wakefield Police, we set up this ATM to see just how easy it is to get people to use it.

Our expert outfitted the ATM with extra equipment that can steal a person's financial information and installed a tiny hidden camera behind the mirror.

Robert Siciliano, IDTheftSecurity.com
"That pinhole camera then takes a picture of your pin as you're punching it in."

It didn't take long before people, like this couple and this woman, approached looking to get some cash.

They were about to swipe their cards, but we stopped them.

Jonathan Hall, 7News
"Excuse me m'am. Hi. I'm from Channel 7."

We explained the situation and they were stunned.

Woman Trying To Use ATM
"That's crazy!"

Man Trying To Use ATM
"I think that's pretty awful."

Jonathan Hall, 7News
"Take a look under here with me, can you see that camera?"

Woman Trying To Use ATM
"Oh my God, yeah, I do see it."

Jonathan Hall, 7News
"Did this seem kind of out of the ordinary, having it sit here on the sidewalk?"

Woman Trying To Use ATM
"ATMs are everywhere, why not?"

In many cases, before a person even realizes their financial info has been stolen, the crooks are cashing in.

Robert Siciliano, Security Expert, IDTheftSecurity.com
"You can empty their bank accounts overnight."

In Massachusetts, the Division of Banks is responsible for ATMs. And there are no regulations about who can buy one.

Barbara Anthony, Undersecretary, Mass. Office of Consumer Affairs
"In terms of purchasing an ATM, you know, I suppose anyone can buy an ATM."

But the Commonwealth does require that any non-bank ATM must be licensed before it can legally dispense cash.

Barbara Anthony, Undersecretary, Mass. Office of Consumer Affairs
"We have very stringent requirements that we have people go through. We do thorough background checks for criminal record histories. We investigate the companies who would hold the license to the ATM."

To keep your finances safe, the experts recommend that you always try to use a reputable bank's ATM and look for anything suspicious on any ATM you use, like something attached to the front or something that looks removable.

Robert Siciliano, Security Expert, IDTheftSecurity.com
"You can't just walk up to any ATM machine, put your card in, and expect that thing's gonna be legit."

And, they say, always check your bank and credit card statements for any unusual activity.

That way, criminals can't cash in on your money.

(Copyright (c) 2009 Sunbeam Television Corp. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)