You have cash in an ATM. Don’t touch it!

Cash still plays an important role in Spain’s everyday life despite the rise of mobile wallets and contactless payments. Whether it’s for small purchases, tips or local shops, many people continue to rely on banknotes — which means ATMs remain more important than ever. And unfortunately, they are also a popular target for criminals seeking quick and discrete opportunities.

The truth is, while we tend to think of ATM fraud as being complicated and involving technical attacks or hacking, many of the most efficient scams can be quite simple. One of these, the “banknote fraud,” is a scam that has fooled people because it appears harmless.

The “Banknote Scam”, a scam that targets cash machines

The scam begins even before the victim approaches the cash machine. The scammer places a partially inserted banknote into the money slot. He then walks away and waits near.

The next customer will usually notice the note immediately. The majority of people believe that someone else has already forgotten the note. Out of basic honesty, they might look around to return it – or, tempted by unexpected luck, they might simply pick it up and slip it into a pocket.

The reaction is the exact same in both cases: the attention is diverted for a short time from the ATM display, keypad or card slot. Criminals wait for that moment of distraction.

Experts in security have repeatedly warned that you should not leave the transaction when using an ATM. The banknote trick has only one goal – to break your concentration at precisely the wrong time.

What scammers do with that moment of distraction

While your attention is drawn to the “lost” cash, scammers stay close enough to watch – often without being noticed.

The criminal will carefully watch as you enter your PIN. If you do not shield the keypad properly with your hand, just one glance can be enough for the criminal to memorise the PIN.

Sometimes, the setup can be even more deliberate. Fraudsters might have hidden cameras placed near the machine and pointing at the keypad or card slot. Fraudsters use the banknote as a distraction to make you forget to look around.

The scam can also take on a more brazen form. The stranger could claim that the banknote belongs to them or say the ATM doesn’t work properly. They might offer “help” and suggest that you cancel the transaction and start again. The opportunity is there if they can convince you to leave the ATM without completing the transaction. The criminals can drain your account in seconds by using the details exposed or by stealing your card.

What makes this scam particularly effective is that it exploits very natural human instincts – honesty, politeness and the desire to help – turning good intentions into an opening for theft.

Use ATMs safely

Security professionals have a clear message: Stay focused throughout the entire process.

If you notice anything unusual around a cash machine – whether it’s a banknote lying nearby, unfamiliar attachments on the machine or someone hovering too close – do not engage with it.

You should always shield your hands when entering your PIN even if it appears that the ATM is empty and secure. Avoid conversations with strangers who claim to be able to assist you and do not take any instructions from them.

Do not touch the banknote if you find it near an ATM. After you have completed your withdrawal, make sure to secure your card and your money. Only then should you consider giving the banknote to the nearby staff at the bank or police.

No matter how overwhelmed or confused you feel, it is important to never leave the ATM in the middle.

ATMs are one of the safest ways to deal with cash. Still, technology isn’t the only risk factor – old-fashioned distraction remains one of the most powerful tools scammers use.

One moment of distraction can be enough for criminals. If you see a “forgotten banknote” near a cash-machine, stop, breathe, and focus on what you are doing.

Attention is the strongest protection you can have at a ATM.