Does your bank have a cardless ATM? Cardless ATMs interact with your smartphone to let you withdraw cash from your bank’s enabled ATMs without inserting a card into a card reader.
With some ATMs, your smartphone app generates a QR code for your withdrawal, and the ATM scanner reads the QR code off your phone. Other ATMs use near-field communications (NFC), the same technology that allows you to avoid slot readers by tapping your card or phone against a receiving sensor (think Apple Pay and digital wallet apps).
In either case, your smartphone substitutes for your card. However, that adds another avenue for fraudsters to trick you out of personal information and drain your bank account.
From a technology standpoint, cardless ATMs are relatively safe. They use tokenization to provide a random number for each transaction, avoiding transmission of the card number. The…