It happened to me in Capetown, South Africa, a few years ago. Same story. By the time I notified my US bank, there were $2600 in charges over six locations. It turned out to be an employee, an ATM technician, of the Capetown bank, who had rigged the machine to record the PIN when entered, and he just cruised by this ATM site and collected whatever cards had fallen into the collection box. An easy scam for an employee. Since your card was kept by the ATM after you, I assume, entered your PIN, then there aren't too many options for who was using it. I'd contact the bank.