"The fraudsters are using sophisticated handheld card readers or scanners which are placed in the card-slot of an ATM and which clones the ATM user's card," said Gilbert Swats, chief executive officer of Sabric.

The thieves gain access to a client's account by obtaining the PIN number from the user by "lending a friendly hand" to a client whose transaction cannot be process at the ATM they are using.

Victims don't realise

"Because the victim still has their original card with them, they are none the wiser."

Swats said criminals use other methods to skim victims' cards.

"In some instances they choose a site with two ATMs and jam one of the machines so a card cannot be inserted. At that point one of the fraudster acts busy with the other machine and offers to help the client by putting the client's card into the machine he is using."

Victims are persuaded to hand the card to the criminal, who may then scan the card with a tiny card reader hidden in his hand.

"Once read, the card is inserted into the ATM and the victim is instructed to enter their pin number in full view of the thief."

Technology 'sophisticated'

Card-scanning devices have also been reportedly placed inside or over the lip of ATM card-slots.

"The technology available to thieves is incredibly sophisticated yet a few simple precautions exercised by ATM users will stop them in their tracks," said Swats.

Sabric advisees ATM users to not give their pin number out or let anyone see it and if there is any sort of distraction, or if the ATM operates in an unusual way, cancel the transaction and go to another ATM where they can change your PIN number.

Moreover, Sabric advises never accept help from strangers or security guards. Instead you should go into the bank branch should you require assistance.