Why it's not true for the USA:
FTC (page 12) states they do not use this because people would have a hard time under duress/stress to recall their pins in reverse.
Why it's not true for the UK:
On the UK Crimestoppers page, under Cash Point Fraud it explains that the information is a hoax and false information. Do not act on it.
Why it's not true for Canada:
Welland Tribune (Niagara Region) spoke with Derek Watson, spokesperson for the Niagara Region Police who confirms this is simply not true.
Also the Canadian Bankers Association here in Canada says, "This myth is completely untrue. There is no way for an ABM to decrypt a PIN entered backwards, it will simply direct you to re-enter your PIN."
The only truth is that the technology exists for this to "become" true. But what happens when your PIN is a palindrome (i.e. 1221, 2332). Chances are if this technology becomes true, then PIN's that are palindromes would have to be changed. Oh, and your BANK would tell you.
If this information is not enough to prove to you that this is NOT true, then please put your pin in backwards. However if you do this 3 times, your account becomes frozen and your card is taken by the ATM.
My thoughts:
If you are going to take out money in a some what unsafe neighborhood, you are probably better off getting "cash back" from your grocery store, even if it means you have to make a small purchase to get it.
Also, there is not many real reasons to carry cash on you these days. For your own safety, why not just use your debit. You can get free banking from places like ING Direct (Tangerine) as well as PC Financial in Canada.
Mugging/thefts are crimes of opportunity so don't make yourself a target. Use ATM's that are well-lit and are inside. If you feel unsafe, just don't. If you are forced to, simply do as they ask, money is NOT worth your life.
As for PIN reversal, it does not make a lot of sense to use this. I know my PIN well, but under pressure I PANIC, many do. Because of this, you would take longer. The longer you take, the more the criminal is nervous and more likely to shoot you even if that was not his/her intent.
