Over three quarters (76%) of Britons say that they are concerned about withdrawing money from cash machines due to worries about fraudsters copying their card details, according to a new report from Lloyds TSB.

People surveyed said that they would feel more confident using a cash machine if they knew it was fitted with an anti-skimming device while only 3% said that it wouldn’t make any difference.

To tackle the problem directly, Lloyds TSB has now introduced anti-skimming devices at many ATMs. The anti-skimming device, fitted to the cash machine, thwarts fraudsters’ attempts to capture customers’ card details using sophisticated technology.

In a skimming scam fraudsters typically attach a skimming device to the entry slot of the cash machine to record the electronic details from the magnetic stripe of genuine cards as they are inserted into the cash machine and a miniature camera is hidden overlooking the PIN pad. This enables the criminal to produce a counterfeit card and withdraw money at a cash machine using the legitimate PIN.

As skimming only works with mag-stripe cards, the roll out of chip and PIN was meant to eradicate cash machine fraud in the UK. The introduction of the technology helped cut ATM fraud by 12% in 2005, but losses from the crime still totalled £65.8 million, according to figures from Apacs.

Lloyds TSB says the new devices will protect those consumers without chip and PIN cards, including foreign visitors to the UK, as well as customers with damaged chip cards which, in some cases, can revert to working via the magnetic strip.

Cash machine fraud totalled £65.8 million in 2005 according to APACS and almost a quarter (23%) of those say that they are more nervous about using cash machines than they used to be.

A further 15% say that they have started withdrawing cash from machines inside branches and shops, as they think they are safer. One in ten (13%) admitted that they use cash machines less frequently than they used to, as they think it reduces the chances of becoming a victim of fraud.

Overall, Britons are becoming much more vigilant when withdrawing cash, with 81% of people claiming that they check that there is nothing unusual or suspicious about the machine before inserting their card. But, despite taking the time to check, only two fifths (37%) feel confident that they’d be able to tell if a cash machine had actually been tampered with.

More than a fifth (22%) of people surveyed say that they have changed their mind about using a particular cash machine, as they thought it had a skimming device attached to it.

Matthew Timms, Internet & ATM director, Lloyds TSB said: "Cash machine fraud is a concern and we need to use all available weapons to fight back. There are over two billion ATM cash withdrawals every year and while the vast majority of these are problem free, there is no room for complacency."

"We are doing everything we can to ensure that our cash machines are safe to use but we also need customers’ help and we urge people to be vigilant when using cash machines and report anything suspicious by either using the 24 hour phone number we provide on our ATM screens or by contacting the police."

Barclays Bank has also rolled out anti-skimming devices across its cash machine network in the UK and limited daily withdrawals from ATMs in a bid to cut fraud levels.

• Be aware of others around you and put your personal safety first. If someone close to the cash machine is acting suspiciously or makes you feel uncomfortable, just cancel the transaction and go to another machine.
• If there’s anything unusual about the cash machine or there are signs of tampering, don’t use it – report it to the bank or police as soon as possible.
• Give other users enough space to enter their PIN in private. Ideally stand about two metres away from the user in front of you until they have completed their transaction. Some cash machines may have a privacy zone marked out on the ground around the machine.
• Do not accept help from ‘well meaning’ strangers and never allow yourself to be distracted.
• Stand close to the cash machine and always shield the key pad to prevent anyone seeing your PIN.
• Once you have completed your transaction, put your money and card away before you leave the cash machine.
• If the cash machine does not return your card, report its loss to the bank straight away.
• Take care when disposing of your cash machine receipt, mini statement or balance enquiry.