In India, Banks are pushing Customers to interact with them only through ATMs. Even RBI is encouraging this mode of interaction and discouraging customers from visiting bank branches.
As a result of this policy, Bank customers are being exposed to increased levels of insecurity in their Banking transactions. Apart from the various incidents reported in India involving skimmers and hacking of ATMs, the video in this link provides a clear indication of how unsafe are the current systems.
In one of the attacks, the demonstrator reprogrammed the ATM remotely over a network, without touching the machine; the second attack required he open the front panel and plug in a USB stick loaded with malware.
The ATM fraud is therefore a threat looming large in Indian Banks. Hence there is a need for a special ATM security mechanism to be introduced by the Banks to protect themselves and their customers.
Hope RBI will take note.