Cardless ATMs Will Make Hacking Much More Difficult

Mobile banking apps are becoming more and more common; which is swiftly making debit and credit cards unnecessary. But perhaps a more well-known physical banking object is now going the way of the dinosaur: the ATM. What’s replacing them? The better, new cardless ATM. However, this change to ATMs will likely not happen quickly, especially if it follows in the steps of chip technology. The following will discuss the invention of the new cardless ATM and describe why this kind of ATM machine — perhaps counterintuitively — will be so much harder to hack.

What Are Cardless ATMs?

At their most basic, cardless ATMs will not be ATMs in a traditional sense. Instead, banking mobile apps will generate a code that consumers use to unlock their bank accounts. They can then use this code to withdraw money (yes, physical, paper money) from their accounts by tapping their phones when they are in front of an ATM. Then, the ATM will dispense money in the same way it would with a debit card.

Read More: A Brief Guide to Using Mobile Banking Apps

What Banks Are introducing Cardless ATMs?

Major American banks like Wells Fargo, J.P. Morgan Chase, and Bank of America have all designed plans for cardless ATMs. More major banks should be adding this technology to ATMs soon, too, if they want to remain competitive.

When Will These ATMs be introduced?

If you’re excited to use card-free mobile payments with ATMs, then you won’t have to wait much longer, especially if Wells Fargo is your bank. Wells Fargo users can withdraw money at any of the Wells Fargo ATMs around the country using their smartphone app. After a pilot program, the company implemented the phone-reading technology at its 13,000 ATMs around the country.

Why Are These ATMs Much Harder to Hack?

The reason why cardless ATMs will reduce fraud is primarily because they’ll reduce skimming, which is the practice of copying card and ID numbers from the magnetic strips on plastic cards used in ATM machines. In skimming, scammers use electronic devices, specifically fake card readers, to copy your personal information and your PIN number. Users wanting to withdraw money put their debit cards into the fake device, which, in turn, relays their information. At the same time, the scammers use cameras hidden near the ATM to record users’ pin numbers to use in conjunction with the card itself.