We've all heard this advice when withdrawing money from an ATM: "After completing a transaction, press the Cancel button two or three times before leaving the ATM, or your PIN could be stolen." This advice went viral so quickly that people started following it as a rule. Even today, many people press Cancel first after withdrawing cash from an ATM before leaving the machine.

But is the Cancel button really connected to your PIN security? Could not pressing it lead to a hacking of your account? But this is just your misconception. In reality, the Cancel button is installed for a different purpose. Let's learn more about this and understand the real function of the Cancel button in an ATM.

How does an ATM work? Understand the technology first.

It's important to understand ATM transactions to understand the role of the Cancel button. You insert your card, and the ATM asks for your PIN. The PIN is sent to the bank server in an encrypted format, meaning it cannot be read by any other machine or device. The machine processes your request—cash, balance, or statement. As soon as the card comes out, your entire transaction session is automatically logged out.

Most importantly, after this process is complete, your PIN and other information are not saved in the ATM's memory. The machine deletes all information as soon as the card comes out. Therefore, even if you don't press Cancel, your PIN remains secure.

So, what is the real purpose of the Cancel button?
The Cancel button's purpose is not to save the PIN, but to cancel the transaction. This is useful when:

You've entered the wrong amount.

You think someone is viewing your PIN.

There's a network problem, and you want to stop the transaction.

Once the transaction is complete and the card is removed, pressing Cancel has no technical significance.
Understand when the real danger lies?

1. Card Skimming
Fraudsters install fake skimmers on the ATM slot that copy information from your card's magnetic strip.

2. Hidden Cameras
A small camera is hidden near the keypad that records your PIN.

3. Shoulder Surfing
A person standing behind you secretly observes your PIN.

4. Fake Keypad
An additional fake layer is applied to the keypad that records your PIN. The Cancel button does not affect any of these things.

Follow These Safety Rules
Enter the ATM cabin alone.
Try gently shaking the card slot—if it feels loose, do not perform the transaction.
Cover the keypad with your other hand while entering your PIN.
If you see a camera or anything unusual nearby, replace the ATM.
Do not throw the receipt away; destroy it.

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.