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Young homeowners are more likely to use their home as an ‘ATM’ than their Boomer parents. Here’s why

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/rachel-ong-viforj-113482">Rachel Ong ViforJ</a>, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a> and <a href="https://theconversation.com/profiles/christopher-phelps-378137">Christopher Phelps</a>, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a> For many Australians, the family home is their largest financial asset. With an increasing variety of ways to tap into home equity, the temptation to access this wealth is ever growing. Homeowners increase the debt owed on their home when they borrow against their <a href="https://doi.org/10.1080/02673037.2013.783202">equity</a>. Standard mortgage home loans now provide facilities for relatively cheap or free withdrawals of equity from the home. This turns the <a href="https://theconversation.com/your-home-as-an-atm-home-equity-a-risky-welfare-tool-22000">home into an ATM</a>, which borrowers can access when they choose. Our new <a href="https://doi.org/10.1080/02673037.2024.2400158">study</a> asks what motivates Australians to tap into their home equity, and how does this behaviour change with age? Surprisingly, despite having much lower housing equity levels, younger homeowners borrow often, and borrow more, than their Boomer parents. <h2>How common is equity borrowing?</h2> Using 15 years of data from the government-funded <a href="https://melbourneinstitute.unimelb.edu.au/hilda">Household, Income and Labour Dynamics in Australia </a>(HILDA) survey, we tracked the mortgage debt and repayments of homeowners aged 35 and over. The chart below shows younger owners are far more likely to engage in equity borrowing. In 2006, nearly 39% of the youngest homeowners, aged 35–44, borrowed against their home equity. By 2021, this number had dropped to 29%. Despite the decline, it’s still 24 percentage points more common than those aged 65 and over. The older group has remained steady at about 5% over the years. <hr /> <iframe id="Ll9Cw" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/Ll9Cw/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <hr /> <h2>How much do equity borrowers withdraw from their home?</h2> Among those who use their home like an ATM, younger borrowers now withdraw larger amounts than older borrowers. In 2006–07, equity borrowers aged 35–44 and 45–54 withdrew on average $43,000 and $57,000, respectively (expressed in real values set at 2022 price levels). By 2021, the amount withdrawn by these two age groups had climbed to $70,000 and $100,000. On the other hand, the amount withdrawn by borrowers aged 55 or older fell from more than $50,000 to less than $40,000. <hr /> <iframe id="ujq3S" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/ujq3S/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <hr /> <h2>What motivates equity borrowing?</h2> Young homeowners’ equity borrowing behaviours are sensitive to changes in house prices and debt values, and their financial risk preferences. Among those aged 35–44, a $10,000 increase in the primary home value raises the likelihood of equity borrowing by ten percentage points. Every $10,000 in debt against the primary home reduces the likelihood by 2.8% percentage points. Those willing to take substantial financial risk are eight percentage points more likely to borrow against their home than those who are risk-averse. Those aged 65+ are not inclined to borrow, and exhibit little change in equity borrowing behaviour with variations in asset, debt, income or financial risk preferences. <h2>Why borrowing practices differ between age groups</h2> As well as being more likely than older homeowners to borrow against equity, the younger group also withdraws higher amounts than their Boomer parents. This is despite younger borrowers already carrying much higher debt against their primary home. Among those in our study who engaged in equity borrowing in 2021, the median debt before borrowing was $401,000 for 35-44 year-olds compared to $0 for those aged 65+. As real house prices have risen over decades, the current generation of young homeowners has had to invest more money into purchasing their first home than previous generations. It’s therefore not surprising the primary home is now widely viewed as a financial resource to be <a href="https://theconversation.com/your-home-as-an-atm-home-equity-a-risky-welfare-tool-22000">tapped into to meet spending needs</a>. On the other hand, most Baby Boomers bought their first home at more affordable prices than their children, and at lower levels of debt. Now they don’t appear to be spending their kids’ inheritance by drawing down housing wealth. In fact, older parents may shy away from equity borrowing to <a href="https://www.pc.gov.au/research/completed/wealth-transfers/wealth-transfers.pdf">bequeath wealth to children</a>. Some also <a href="https://doi.org/10.1017/S0047279417000058">dislike passing debt</a> on to their children. Older people may also avoid equity borrowing due to concerns about <a href="https://treasury.gov.au/sites/default/files/2023-08/p2023-435150.pdf">aged care costs</a>. Some may be hampered by <a href="https://doi.org/10.1016/j.jue.2013.08.003">poor financial literacy</a>. <h2>More debt ahead without policy changes</h2> Present trends suggest young homeowners will remain indebted for longer periods, and more and more will <a href="https://theconversation.com/more-of-us-are-retiring-with-mortgage-debts-the-implications-are-huge-115134">retire with mortgage debt</a>. For indebted retirees, there are real prospects of <a href="https://theconversation.com/fall-in-ageing-australians-home-ownership-rates-looms-as-seismic-shock-for-housing-policy-120651">drawing down of superannuation</a> to pay off mortgages in retirement. This may impose extra burdens on the age pension system. Another unwelcome consequence, which may add to health costs, is the prospect of <a href="https://www.ahuri.edu.au/sites/default/files/migration/documents/AHURI-Final-Report-319-Mortgage-stress-and-precarious-home-ownership-implications-for-older-Australians.pdf">debt-related psychological distress</a> among those who can’t pay off their mortgage in old age. If the current trends continue, the <a href="https://www.afr.com/policy/economy/what-happens-when-australia-s-boomers-hand-5-trillion-to-their-heirs-20240515-p5jdvf">great wealth transfer</a> that has already begun looks set to <a href="https://theconversation.com/not-everyone-wins-from-the-bank-of-mum-and-dad-73842">further entrench inequality</a> between those who have access to the bank of mum and dad and those who do not. Encouraging older people to use their housing equity to fund their needs in old age may lighten fiscal burdens on younger generations. But policy reforms will be needed to relieve concerns about the risks of equity borrowing in old age.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/238924/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/rachel-ong-viforj-113482">Rachel Ong ViforJ</a>, ARC Future Fellow & Professor of Economics, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a> and <a href="https://theconversation.com/profiles/christopher-phelps-378137">Christopher Phelps</a>, Research Fellow, School of Accounting, Economics and Finance, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/young-homeowners-are-more-likely-to-use-their-home-as-an-atm-than-their-boomer-parents-heres-why-238924">original article</a>. </div>

Money & Banking

Can you spot the illegal ATM camera?

Withdrawing cash from an ATM is a convenience we really do take for granted these days. But, as new photo doing the rounds on Twitter this morning proves, we really shouldn’t be so blasé when using these easily-manipulated machines. This photo, which was shared by London’s Metropolitan Special Constabulary, depicts what appears to be a pretty standard ATM. But, as one off-duty officer discovered, there’s much more to this photo than meets the eye. Can you see the hidden camera mechanism? <img width="500" height="664" src="https://oversixtydev.blob.core.windows.net/media/7818174/card-machine_500x664.jpg" alt="Card -machine"/> Image credit: Twitter / MPS Specials If not, don’t worry. You’re not the only one. To see where this hidden camera is located, scroll through the gallery above. “Off duty @MPSNewham Special Constable has sniffed out a covert camera recording the pin pad of this ATM in @MPSWestminster. This is why it is so important to #CoverYourPin when taking out cash,” London's Metropolitan Special Constabulary wrote. We couldn’t agree more! Have you ever had your cash skimmed at an ATM? Image credit: Twitter / MPS Specials

Legal

10 countries with the worst ATM fees in the world

Withdrawing money from an ATM while you’re overseas can be an expensive experience, particularly if you haven’t done your research prior. There are parts of the world, many of them popular with tourists, where travellers are taken to the cleaners by excessive ATM fees. But which countries are the worst culprits? We’ve narrowed our list down to 10 countries with the worst ATM fees in the world. If these destinations are on your itinerary, you might want to change your money prior to arrival. To see them all, scroll through the gallery above. Have you ever been stung by excessive ATM fees?

Travel Trouble

Bank to sue customer who withdrew $18K from faulty ATM

An American bank has announced plans to sue a customer who withdrew $18,000 from a faulty ATM, which was dispensing $100 bills instead of $5 bills. The Wichita Eagle reports the Central National Bank in Wichita contends Christina Ochoa knew the ATM wasn’t functioning properly but continued to withdraw. Documents obtained by the Eagle suggest Ochoa made more than 50 withdrawals over five days in mid-January, with several transactions processed in the middle of the night. The bank now wants her to pay back $14,795.21 plus interest. The case has also implicated Ochoa’s mother, Christy, who is believed to have driven her daughter to the bank to commit the fraudulent transactions. “The first time the ATM dispensed more money than what was due … Christina and Christy had a duty to return the surplus funds to the bank. … Not only did they fail to (do) so, but they capitalised on the situation by making a series of over fifty structured withdrawals, most within minutes of each other, and transacted at all hours of the night in order to expose Central to more loss,” court documents reportedly said. What are your thoughts?

Legal

The devious new trick ATM skimmers are using to steal your PIN

ATM skimmers are using a devious new trick to swipe the PIN details of innocent New Zealanders, and they can do it without even having to lay a hand on your card. The newest scam comes in the form of an infrared camera, which picks up the heat signature of objects through the lens. While this technology isn’t new, it has been slowly perfected and shrunken over the years for nefarious purposes. Jet propulsion laboratory engineer Mark Rober explains just how dangerous these devices can be in the video below, and the simple but important things you have to do if you want to keep yourself and your bank account safe. <iframe width="560" height="315" src="https://www.youtube.com/embed/8Vc-69M-UWk" frameborder="0" gesture="media" allow="encrypted-media" allowfullscreen=""></iframe> As you can see in the video, scam artists can easily use their devices to figure out which keys you’ve pressed when keying in your PIN code at the ATM machine. And as Rober explains, outsmarting the scammers is simple “When you’re punching in your PIN on the key pad, rest some of your other fingers across the other keys. This way, you’ll throw off the infrared image and a thief won’t be able to distinguish which numbers you pressed,” he explains.

Money & Banking

The massive catch behind banks removing ATM withdrawal fees

Consumer group Choice has revealed the massive catch behind banks removing their ATM withdrawal fees after the big four’s surprise announcement this week. Commonwealth Bank made headlines on Sunday when it announced that it would be abolishing additional ATM withdrawal fees for customers from other banks, with NAB, ANZ and Westpac quickly following suit. But as Choice points out below, it would be a mistake to think that the big four banks have completely abandoned the idea of <a href="http://www.oversixty.com.au/travel/travel-tips/2017/08/travellers-warned-about-currency-conversion-swindle/" target="_blank">slugging customers with extra fees</a>. <blockquote class="twitter-tweet"> .<a href="https://twitter.com/Bankwest">@Bankwest</a> still charges you $2.50 to use their ATMs if you’re not customer. Tell them you want an end to ATM fees: <a href="https://t.co/qfy9aupRVY">https://t.co/qfy9aupRVY</a> <a href="https://t.co/URHNqQzr9b">pic.twitter.com/URHNqQzr9b</a> — CHOICE (@choiceaustralia) <a href="https://twitter.com/choiceaustralia/status/912180052791406592">September 25, 2017</a></blockquote> While additional charges for non-customer ATM withdrawals have been abolished at 3,400 CommBank machines, 2,300 ANZ machines, 2,925 Westpac machines and 1,300 NAB machines across the country, Commbank subsidiary Bankwest will retain the charges. In addition, 3,100 NAB-branded rediATMs located at pubs, clubs and stores around the country will continue to charge extra fees for non-customers. That said, the bank’s decision has still been widely applauded, although consumers have been warned to be wary and check if other fees have been increased. Australian Bankers’ Association chief Anna Bligh told <a href="http://www.skynews.com.au/" target="_blank">Sky News</a>, “Customers can look at their own statements and see whether any other fees have been increased. But banks have made it clear that that’s not what they’re going to do, that they will take this as a cost of keeping their customers, and getting the best opportunity to win more customers.” What are your thoughts?

Money & Banking

The ATM celebrates 50 years but we’re using it less

Steve Worthington is an Adjunct Professor at Swinburne University of Technology. As the Automatic Teller Machine (ATM) celebrates its 50th birthday, it’s actually being used less and less to withdraw cash in Australia. There are currently more than 32,000 ATMs across Australia and <a href="http://www.rba.gov.au/payments-and-infrastructure/resources/statistics/payments-data.html" target="_blank">cash withdrawals</a> in February 2017 were A$9,924 million, down 10% from the previous year and just above the total of February 2005. ATM’s (Automatic Teller Machines) were first introduced at the end of June 1967 and were welcomed by both bank customers and the banks themselves. This “hole in the wall” enabled customers to access their cash 24/7. The ATM’s self-service nature enabled the banks to reduce their costs, by closing bank branches, reducing opening hours and laying off staff. But the Reserve Bank of Australia’s <a href="http://www.rba.gov.au/publications/bulletin/2017/mar/7.html" target="_blank">2016 Consumer Payments Survey</a> reported that cards were used more often than cash for in-person payments, as well as online payments. This is facilitated by Australian consumers and merchants’ rapid adoption of contactless. The July 2017 changes to the level of merchant service fees for accepting payment cards might even further reduce our reliance on these machines. The changes should reduce surcharging and minimum spends for accepting cards (in theory) and we will then have even less reason to carry cash. ATMs will need to evolve to remain relevant, perhaps taking on other services entirely. Lots of cash, just not from ATMs Paradoxically, there has never been so much cash available in Australia. By April 2017 there were <a href="http://www.rba.gov.au/publications/annual-reports/rba/2016/banknotes.html" target="_blank">1.5 billion individual banknotes</a> on issue, an average of 62 notes for every Australian. The RBA has recently opened a new super bank vault to store <a href="http://www.rba.gov.au/about-rba/corporate-plan.html#7-banknotes" target="_blank">its contingency reserves of banknotes</a>. There are similar patterns in other countries. For example, the <a href="http://www.bankofengland.co.uk/banknotes/Pages/about/stats.aspx" target="_blank">Bank of England notes in circulation rose</a><a href="http://www.bankofengland.co.uk/banknotes/Pages/about/stats.aspx"></a> by 10% in 2016, the fastest pace in a decade. This is despite technological advances that now allow people to pay by contactless cards and digital devices, such as mobile phones. Why then is cash still so popular? The RBA’s <a href="http://www.rba.gov.au/publications/bulletin/2017/mar/7.html" target="_blank">2016 survey</a> concluded that cash is widely held as a store of value. If found 70% of respondents to the survey held cash in places other than their purses and wallets. The government’s <a href="https://www.google.com.au/search?q=black+economy+taskforce+interim+report&oq=black+economy&aqs=chrome.1.69i57j69i59l2j0l3.8227j0j4&sourceid=chrome&ie=UTF-8" target="_blank">Black Economy Taskforce estimates</a> that the Australian black economy is around 1.5% of GDP, or A$25 billion per year. Much of this is enabled by the use of hard cash, as opposed to electronic payments. <a href="https://www.amazon.com/Curse-Cash-Kenneth-S-Rogoff/dp/0691172137" target="_blank">Harvard professor Kenneth Rogoff wrote</a> that physical cash can facilitate corruption and tax evasion. In his view, many of the disadvantages of cash could be reduced if larger denomination notes were withdrawn from circulation. As an example, the Euro 500 note is due to be withdrawn from the end of 2018, however it may take more than this to reduce the underlying attraction of cash. There are many assumptions, attitudes and beliefs which legitimise and perpetuate participation in the black economy. Questioning these will require behavioural change from all citizens, according to the <a href="http://kmo.ministers.treasury.gov.au/media-release/040-2017/" target="_blank">Black Economy Taskforce’s interim report</a>. As an example, if someone else is avoiding GST by paying in cash, others might think “well if they are doing it, I would be a fool not to do it myself”. Other uses for the ATM These are services available to bank customers through their ATMs in countries other than Australia. For example, ATMs could be made more efficient by encouraging more customers to deposit cash into the ATM and then recycling that cash in the machine to be used by those seeking to withdraw cash. This would remove many of the costs and security risks of constantly replenishing ATMs with cash. Additional functions could be added to the ATM. In the United States you can buy postage stamps at the ATM; in Spain tickets to football matches; in Dubai bars of gold; in California fresh cupcakes and elsewhere fishing licenses and tax bills can all be accessed through ATMs. As regards customer security to ward off identity theft, biometric measures could make access to the ATM more secure. In Japan finger vein scanning is already in use in many ATMs. These developments could put ATMs in the forefront of an enhanced customer experience, giving the ATM reasons to survive for another 50 years. Written by Steve Worthington. First appeared on <a href="http://www.theconversation.com" target="_blank">The Conversation.</a><img width="1" height="1" src="https://counter.theconversation.edu.au/content/79847/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation"/>

Retirement Life

Chaos as money goes missing from bank accounts

A major Philippine bank was forced to shut down online transactions and their ATMs on Wednesday after money went missing from customer accounts, triggering fears the major bank had been hacked. Customers of Bank of the Philippine Islands (BPI) discovered on Wednesday morning unauthorised withdrawals and deposits from their accounts. BPI said in a statement the problem was caused by an "internal data processing error" that had been identified, although did not explain why the glitch occurred. But the bank had to tell its eight million customers that they could not use ATMS or conduct online transactions on Wednesday as they fixed the problem. "Please do not panic... we will make sure that your money is there," BPI senior vice president Cathy Santamaria said at a news conference. There are fears the error was caused by hacking after the world’s biggest ransomware attack last month that affected hundreds of thousands of computers worldwide. Nestor Espenilla, the incoming governor of the Bangko Sentral ng Pilipinas, the country's central bank, said he had accepted "for now" BPI's explanation that no hacking was involved. "We have no reason to believe otherwise at this point of time, but as I said this is standard operating procedure, we always verify every incident that we are aware of," Espenilla said in a radio interview. "For now I think it's important that BPI resolves it as quickly as possible. We take their assurance that this is not a hack and no money will be lost."

Money & Banking

5 signs you shouldn’t use that ATM overseas

Gone are the days where the smartest way to manage your funds overseas was by stashing a wad of foreign cash in the bottom of your sneakers and hoping for the best. The widespread prevalence of ATMs and travel money cards has made accessing money on holidays easier than ever. But with that ease, comes a degree of risk. Scam artists are increasingly coming up with more sophisticated ways to nab the cash of tourists making withdrawals at ATMs. So how do holidaymakers stay one step ahead? Well, we’ve put together a list of danger signs in the gallery above. If you notice any of these signs at the ATM your using, you should head somewhere else. To see the signs, scroll through the gallery above. Have you ever had your card skimmed overseas? Have you arranged your travel insurance yet? Tailor your cover to your needs and save money by not paying for things you don’t need. <a href="http://www.oversixty.com.au/travel/travel-insurance/?utm_source=over60&utm_campaign=travel-insurance&utm_medium=content&utm_content=travel-insurance%20%20%20" target="_blank">To arrange a quote, click here.</a> For more information about Over60 Travel Insurance, call 1800 622 966.

Travel Insurance

Wiggling your card can protect you from ATM skimmers

As scammers become increasingly sophisticated, a technology expert has outlined an odd but effective way to protect your money when withdrawing from an ATM. In a report from <a href="http://au.pcmag.com/" target="_blank">PC magazine</a>, Kaspersky Lab security researcher Stefan Tanase suggested the best way to protect yourself from card skimmer’s who grab data off your card’s magnetic strip, is by wiggling it as you insert it into the ATM. Tanase says wiggling your card as you insert it into the reader prevents the skimmer from being able to read the card’s data correctly, which can potentially save you a bundle. Tanase also suggests wiggling the whole machine (ever-so-slightly) to see if you can discern any signs of tampering or foul play before you make an initial withdrawal. Tanase adds, “If you don't notice a card skimmer and your card data does get stolen, take heart. As long as you report the theft to your card issuer (for credit cards) or bank (where you have your account) as soon as possible, you will not be held liable for the lost amount and your money will be returned. Business customers, on the other hand, don't have the same legal protection and may have a harder time getting the money back. “Just remember: If something doesn't feel right about an ATM, don't use it.” Have you ever fallen foul of card skimmers?

Money & Banking

Fraudsters hiding tiny cameras hidden at ATMs

This ATM appears to be like every other ATM but it has been tampered with by fraudsters. A small pinhead-sized hole in the casing shows the tiny camera that has been inserted into the ATM. <img width="498" height="315" src="https://oversixtydev.blob.core.windows.net/media/34294/london-atm-2_498x315.jpg" alt="London ATM 2"/> The London ATM was discovered by police investigating cashpoint tampering who found a tiny hole near the cash dispenser. This tiny camera records ATM users putting in their pin number. This ATM in St Paul’s Churchyard, is just one of the several tampered ATMs that have been discovered in the last month. At the beginning of the month, Police found an ATM where the camera hole was placed in the plastic above the keypad. Behind the plastic were mini-recording devices which could also easily record pin numbers. <img width="496" height="185" src="https://oversixtydev.blob.core.windows.net/media/34295/london-atm-3_496x185.jpg" alt="London Atm 3"/> Police are publishing the photos to show the public just how subtle these cameras are to the untrained eye. PC Matt Clarke, from the City of London Police Crime Squad, said, "If you spot anything unusual about a cash machine, or if there are signs of tampering, don’t use it. If in doubt, try and use a machine inside a branch.” Have you ever seen an ATM that had been tampered with? Let us know in the comments below? Image credit: City of London Police

Money & Banking

5 ways to protect yourself from ATM fraud

Nothing quite ruins a day like realising you’ve become the victim of ATM fraud. Scammers claim <a href="/news/news/2016/04/5-signs-your-atm-has-been-tampered-with/" target="_blank">millions of dollars every year</a>, often because people aren’t vigilant enough. Here are five simple measures you can take to protect your money. 1. Be on the lookout for spy cameras Most ATM scams consist of two parts, one that steals data from your card and the other that obtains your pin number, often through the use of hidden camera. If you notice any objects in and around the ATM that seem a little out of place, treat them with caution. The prevalence of hidden cameras means you must always cover your hand when entering your pin. If you think there’s one around it may be best to withdraw elsewhere. 2. Be aware of signs of shoddy workmanship Banks are generally pretty good with the maintenance and upkeep of their ATMs so if you see any signs of shoddy workmanship including off-colour plastic or inconsistent details, it could be a sign that this particular machine has become compromised. Before inserting your card have a quick look around the machine for anything that feels a little off colour. If it doesn’t seem right it’s best to take your card somewhere else. 3. Keep your eye on suspicious characters around the ATM Often fraudsters are not working alone, so if you’re withdrawing from an ATM you’re not familiar with be on the lookout for any suspicious characters lurking around. They may be in cahoots with the fraudsters who are looking to swipe your personal details. 4. Pay attention to the card slot If anything seems a little odd about the card slot of the ATM, such as an irregular protrusion or inconsistent design it’s important to be wary of this. Fake card readers are often installed over the original slot of regular ATMs to capture your private information. 5. Pay attention to how the PIN pad feels If the PIN pad feels loose, thick or spongey that’s not a good sign. Many fraudsters use a pin-pad overlay technique to capture and record people’s personal details. As with some of the other steps in the list if it doesn’t feel right you’re best going to another ATM. Have you ever fallen victim to an ATM scam, or know someone who has? Do you think you’re going to start following our tips when you withdraw money? Let us know in the comments. Related links: <a href="/finance/money-banking/2016/07/how-to-pick-the-quickest-line-at-your-supermarket/">How to pick the quickest line at your supermarket</a> <a href="/finance/money-banking/2016/07/10-simple-tips-for-fuel-efficient-driving/">10 simple tips for fuel efficient driving</a> <a href="/finance/money-banking/2016/06/10-foods-you-must-stop-buying-at-the-supermarket/">10 foods you must stop buying at the supermarket</a>

Money & Banking

5 tips to safely use ATMs abroad

If you’re on a holiday and looking for euros, pounds, yen or even peso, using an ATM can be one of the quickest, most-convenient ways to access your cash. We’re going to take you through our top tip for using ATMs overseas, so you can be confident you will be securely accessing your money. 1. Know what you balance is and check it regularly Sometimes people only realise they’ve been scammed when it’s far too late. It’s important to make sure you’re aware of your bank balance at all times, and monitor it regularly for suspicious activity. 2. Try to minimise the time you spend at an ATM Lingering around ATMs can leave you open to scams and theft. Before approaching a foreign ATM, work out exactly how much money you want to withdraw and then spend as little time at the machine as possible – but also be sure not to rush and forget anything. If the machine is too confusing, find another one. Lingering too long at an ATM can potentially expose yourself as a tourist to scammers or thieves. 3. Avoid non-bank ATMs Independent ATMs are not only more susceptible to fraudsters, they’re also likely to charge exorbitant fees for accessing your money. Try to avoid these non-bank ATMs wherever possible and only access your money from the major outlets. 4. Withdraw during bank hours near banks Plan ahead and withdraw larger amounts of cash during day hours. Not only will the bank staff be working and on hand to assist you if anything goes wrong, you’re far less likely to be approached by assailants while you’re during daylight hours. 5. If something seems wrong, don’t panic There could be any number of reasons why you can’t withdraw cash from a particular ATM, so if you’re having troubles don’t panic straight away. Sometimes the issue could be simpler than you think. Monitor your balance and try another ATM. Have you ever used an ATM overseas? Did you run into any problems, or was it a seamless process? What advice would you give? Share your thoughts in the comments. Related links: <a href="/travel/travel-tips/2016/06/5-international-cities-you-should-never-visit-alone/">5 international cities you should never visit alone</a> <a href="/travel/travel-tips/2016/06/mastering-the-art-of-bartering/">Mastering the art of bartering</a> <a href="/travel/travel-tips/2016/06/23-items-you-must-have-in-your-carry-on-luggage/">23 items you must have in your carry-on luggage</a>

International Travel

5 signs your ATM has been tampered with

It’s the stuff of every card owner’s nightmares, but the grim reality is millions of dollars are skimmed from ATMs by fraudsters around the world every year. Here are five signs the ATM you’re using has been tampered with. 1. ATM has a “false front” While more prevalent overseas, criminals are becoming increasingly adept and placing card or cash capture devices on ATMs, sometimes even installing “false fronts” onto existing machines. Look for obvious signs like shoddy workmanship. 2. The card insert slot is unusually bulky Sometimes this suggests the presence of a skimmer, which is a device that can be attached to an ATM to secretly swipe card details while you’re making a withdrawal. Misaligned, misprinted stickers and inconsistent logos are generally an indicator. 3. Loose or blocked card slot Take a quick look at the card slot before you put your card in. If it’s loose or somewhat blocked there may be a tiny device or sleeve with a barb that catches your ATM in the machine, but prevents the machine from reading your card. You think it’s been swallowed, leave and in the intervening moment’s fraudsters come and take it. 4. The PIN pad feels thick, loose or sponge-like If the PIN pad feels thick, loose or sponge-like it might be a fake. This method of catching people’s information is known as ‘pin-pad overlay’, where the true PIN pad is covered by a counterfeit that captures your details for criminals to use. 5. A lot of people are lurking around This one seems simple enough but it’s always important to be mindful of your environment surround the ATM. Even well-meaning strangers offering help may be in cahoots with other fraudsters looking to access your card details. Related links: <a href="/lifestyle/family-pets/2015/12/life-lessons-from-grandparents/">Top 10 life lessons kids learn from grandparents</a> <a href="/lifestyle/family-pets/2015/10/quotes-about-siblings/">9 heart-warming quotes about siblings</a> <a href="/lifestyle/family-pets/2015/09/kids-addicted-to-technology/">How kids have fun today is alarmingly different to the good old days</a>

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This video explains how ATMs work

Automatic Teller Machines (ATMs) are a part of our everyday life. But have you ever wondered how they really work? For a look inside this process, check out the video above. Video credit: YouTube / Largest Dams Related links: <a href="/finance/money-banking/2016/02/10-extremely-charitable-celebrities/">10 extremely charitable celebrities</a> <a href="/finance/money-banking/2016/02/story-of-the-first-atm-in-the-world/">The story behind the world’s first ATM</a> <a href="/finance/money-banking/2016/02/tips-for-picking-the-right-charity/">5 tips to find a good charity to help out</a>

Money & Banking

How to safely use ATMs abroad

The thought of a debit card being skimmed (or worse) eaten up by a foreign ATM is enough to send shivers down the spine of even the most carefree traveller. It’s never been easier to access money abroad, but doing this is not without its risks. We’ve put together a best practice guide for withdrawing cash from ATMs abroad. Follow our advice and you can access your funds without the mini-heart attacks. Cover your pin code This one goes without saying (and you should really be doing it when you withdraw cash at home). By covering your pin code as you enter it you protect your account from anyone who might be watching your transaction a little too closely. Be mindful of your surroundings Make sure you’re paying attention to the surroundings of the particular ATM you’re withdrawing from. Go with your gut, and if something feels a little bit amiss there’s every chance that’s because it actually is. Withdraw during the day, close to a branch Don’t take your chances when you’re taking cash out. By withdrawing during the day at an ATM that is close to a branch you can ensure that if something does go wrong (like a hungry, card-eating ATM) you can go inside for immediate assistance. Be aware of your balance Sometimes your card might’ve been skimmed and you might not even know it. By being aware of your balance and checking it regularly you can know straight away if a few hundred dollars here or there has gone missing and you need assistance. Additional tips <ul> <li>Notify your bank/card provider before you travel. They can track your funds.</li> <li>Try to lock in a foreign currency when the exchange rate is strong.</li> <li>Carry multiple cards in different parts of your luggage to avoid pickpockets.</li> <li>Inform your bank/insurer as soon as you notice something wrong.</li> </ul> No matter where you’re travelling to, making sure you know how to access your cash while away – and in the most affordable way – is very important. Easy to use and with countless benefits, the Over60 Cash Passport allows you to securely access your cash in the same way you use an ATM or credit card. <a href="/%20https:/oversixty.cashpassport.com.au">To apply for a card today, click here.</a> Related links: <a href="http://www.oversixty.co.nz/travel/international-travel/2015/12/7-iconic-public-transport-experiences/">7 of the world’s best iconic public transport experiences</a> <a href="http://www.oversixty.co.nz/travel/international-travel/2015/12/top-10-amazing-festivals/">10 most amazing festivals in the world</a> <a href="http://www.oversixty.co.nz/travel/international-travel/2015/12/shibuya-pedestrian-crossing-japan/">The busiest pedestrian crossing in the world</a>

Travel Tips

The story behind the world’s first ATM

Of all the baths that have been taken in the history of the world, few have had the effect on our spending habits as the one taken by John Shepherd-Barron in the sixties. It is said that during this particularly inspired soak Mr Shephard-Barron had a moment of inspiration when he thought to himself – well, if vending machines have the ability to dispense chocolate bars, why couldn’t they dispense my cash? Mr Shephard-Barron pitched the idea for his machine to Barclays, a London bank, who absolutely loved it and the first model was installed at a Barclays’ London outlet in 1967. Although, it should be noted that the first ATM was quite different to the ones we know and recognise today. The first ATM used cheques that were impregnated with a radioactive isotope carbon 14 to initiate a withdrawal, as the original machines predated the use of magnetic coding for modern ATM cards. Oh yes, and another difference, the original ATM didn’t charge a fee to withdraw your money - now wouldn't that be nice! Mr Shepherd-Barron also thought up the idea for a personal identification number or PIN, which was revised by his wife Caroline who changed the original idea of a six digit identification number to four digits as it would be easier number for someone to remember off the top of their head. But perhaps the most startling thing about the whole story is that Mr Shephard-Barron never patented his invention, decided instead to try and keep it a trade secret. It is said that Mr Shephard-Barron was concerned after consulting with lawyers that, “applying for a patent would have involved disclosing the coding system, which in turn would have enabled criminals to work the code out.” Mr Shepard-Barron would eventually be awarded an OBE in 2005 for his efforts. Today there are millions of ATMs spread around the world, and while their use has admittedly declined somewhat over the years as people increasingly adopt credit cards and other contactless paying methods<a href="/finance/money-banking/2015/11/is-australia-becoming-cashless/"></a> as their main transaction tools, ATM machines still remain an important part of modern society and a luxury that we perhaps take for granted sometimes. So the next time you’re withdrawing some cash from your local ATM, spare a thought for Mr Shephard-Barron who’s moment of inspiration (and cleanliness) would forever change the way modern society accessed, used and understood the movement of money. Related links: <a href="http://www.oversixty.co.nz/finance/money-banking/2016/01/facing-up-to-why-we-fail-with-money/">Excuses, excuses! Facing up to why we fail with money</a> <a href="/finance/money-banking/2016/01/10-important-quotes-about-money/">10 quotes that show money isn’t everything</a> <a href="/finance/money-banking/2015/12/10-apps-to-help-you-budget-this-year/">10 apps to help you budget this year</a>

Money & Banking

ATM fees are finally being investigated

You need cash out and your bank’s ATM is nowhere to be found. You withdraw your money and reluctantly pay the extra charge. But is it fair that you have to pay a fee to withdraw cash from another bank’s ATM? This is the very issue that Labor’s Sam Dastyari and the Greens’ Peter Whish-Wilson have asked the Senate to investigate. In the financial year up to July 2014, Aussies were slugged with around $630 million in fees for “other ATM use”. In some areas, particularly rural places, where access to ATMs is limited, the fees are even higher than the standard $2; as well as in petrol stations or non-bank ATMs. The case that Labor and the Greens want the Senate to investigate is that: <ul> <li>the fees are regressive as they affect those with small amounts of money in their account more than the wealthy.</li> <li>the fees don’t reflect the true cost of providing the service; and</li> <li>the fees greatly affect people in rural Australia as banks are closing and their nearest ATM may be far away.</li> </ul> When ATMs were introduced 30 years ago the banks believed they could save money on wages as it would reduce foot traffic into branches. But customers were so enthusiastic about ATM use that the banks found it was adding to their costs rather than reducing them. Australia, in particular, has one of the highest take-ups of mobile banking in the world. The banks are already displeased about Senator Dastyari’s call for an inquiry into credit card interest rates, but it’s the ATM fees that affect more people, more often. Related links: <a href="/news/news/2015/06/new-atms-to-combat-fraud/">New tap-and-go ATMs aim to combat skimming fraud</a> <a href="/finance/money/2015/05/hidden-cost-of-things/">7 things with hidden costs</a> <a href="/finance/money/2015/04/avoid-atm-fees/">Aussies hit with exorbitant ATM charges. Find out how to avoid them</a>

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