Read a very interesting article about card cloning in Germany. In order to clone bank cards, fraudsters need the card details and the code. They get both by applying extremely sophisticated fake fronts to ATMs. For example, they have a magnetic card reader that looks exactly like the tiny colored border that's around the slot of real ATMs. They have mini cameras that read the passcodes. And last not least fake keyboards on top of the ATM keyboard, custom made for each ATM model, also to read the code.

Once they have the data, it's off to the card cloners who withdraw as much as they can in some foreign country.

Articles has pictures of how these fake ATM attachments look like:

http://www.heise-security.co.uk/articles/100187

My wife saw something like this on TV and is in total panic mode.  She won't use an ATM thats outside a bank or not inside a large store like Lotus.