In a move meant to fight fraud, BMO Harris Bank of Chicago is prepared to allow customers to withdraw cash from ATMs by using their smartphone. The service will require a device-side app. BMO customers can prepare the app for a withdrawal, selecting the amount they want, before they reach the ATM. When the customer arrives at the ATM, they specify a mobile withdrawal and hold up a QR code generated by the app. The code is scanned by the ATM and the ATM dispenses the cash -- no debit card required. The idea is to reduce the reliance on debit cards, which are a weak link in the process thanks to skimmers and other methods for stealing the data stored on the card's magnetic stripe. According to BMO, the account holder's card details aren't stored locally on the phone, the bank can remotely delete the app if the phone is lost or stolen, and the information passed between the phone and ATM is encrypted and used only once. The service will initially launch at 750 BMO Harris Bank ATMs across Illinois and Wisconsin, and increase to 900 ATMs by June. BMO Harris is owned by Canada’s Bank of Montreal.


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