I did some snooping around the internet and found that even though this kind of ATM fraud those occur there has been no indication that this is prevailant in India or Pune for a matter of fact
According to hoax-slayer.com
This warning is legitimate and was published on the University of Texas website and other online locations including the Dedhams Savings Bank website
Therefore the letter I got was either a warning from ICICI Bank to it's customers or an attempt by someone to spread rumours or create a popular email forward. Since no such warning is listed on the ICICI Bank website I would think it's the latter.
Bank ATM's Converted to Steal IDs of Bank Customers
A team of organized criminals are installing equipment on legitimate bank ATM's in at least 2 regions to steal both the ATM card number and the PIN. The team sits nearby in a car receiving the information transmitted wirelessly over weekends and evenings from equipment they install on the front of the ATM (see photos). If you see an attachment like this, do not use the ATM and report it immediately to the bank using the 800 number or phone on the front of the ATM.
The equipment used to capture your ATM card number and PIN are cleverly disguised to look like normal ATM equipment. A "skimmer" is mounted to the front of the normal ATM card slot that reads the ATM card number and transmits it to the criminals sitting in a nearby car.
The thieves copy the cards and use the PIN numbers to withdraw thousands from many accounts in a very short time directly from the bank ATM.
Equipment being installed on front of existing bank card slot.
The equipment as it appears installed over the normal ATM bank slot.
At the same time, a wireless camera is disguised to look like a leaflet holder and is mounted in a position to view ATM PIN entries.
Suprisingly this happens only in Pune for some reason. Pune India's high tech crime capital.
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