How did robbers trick SBI ATM machine with ‘Timeout’ error to steal money?

Two unidentified men are reportedly accused of stealing Rs 2.52 lakh from an SBI ATM in Fort, Thiruvananthapuram by manipulating the cash distribution system. Fort police have registered a case under IPC Sections 406 (criminal breach of trust) and 420 (cheating) and are investigating the matter.

How did robbers fool SBI ATM machine?

The fraud, which occurred between June 2022 and July 2023, involved the suspects withdrawing money from the SBI ATM on Padmavilasam Road using multiple stolen or lost ATM cards. They implemented a clever technique: After withdrawing the money, they would leave a single bill in the cash dispensing slot of the machine. This trick caused the ATM to record the transaction as incomplete and display a Timeout Error, preventing the amount from being deducted from the account holders’ balance.
This meant that no reports of ATM fraud were made as no money was deducted from any bank customer’s account. However, there was a discrepancy between the money deposited into the ATM and the amounts withdrawn from customers’ accounts.

How was ‘ATM fraud’ detected?

The fraud was detected when discrepancies were found between the total cash deposited into the ATM and the amounts withdrawn. A bank committee initially investigated the irregularities but was unable to pinpoint the cause. Unable to find any evidence or clues, the committee even suspected bank employees.
However, a development occurred when the investigation team examined the CCTV footage and identified the suspects and that they were using more than one stolen card. The teams saw that the suspects frequently visited the machine and determined that they were using various stolen or lost ATM cards. Later, SBI officials submitted a report to the Fort police and provided the photographs taken of the suspects to VVTV.