NEW YORK — Dozens of banks are testing out a new ATM where users can withdraw money using their smartphone.
Chase, Wells Fargo and Bank of America are in the process of testing out the "cardless" machines. International Business Times reports that around 2,000 machines be placed in 28 banks.
Security experts believe the new machines will help reduce credit card fraud by preventing skimming. IBT estimates that skimming, a technique used to steal data and money with by attaching an illegal device to an ATM, costs the banking industry billions of dollars a year.
Customers using the new ATMs would scan a code to receive their money instead of inserting a card and entering a PIN.