The incident occurred yesterday on Sunday, September 13, at around 1.45pm when the 90-year-old was using the ATM at Tesco Express in Stenhouse Place East.
When the cash dispensed from the ATM, the man waiting behind him grabbed the money and made off. He was last seen running towards the Saughton area, along Stevenson Drive.
The victim was not harmed as a result of the incident and contacted police immediately.
The suspect is described as a white man with a slim build. He is in his early 30s, has fair short hair and is around 5ft 6/7inches in height. It appears his nose has been broken several times. He was wearing a blue padded light jacket with a cord collar and blue jeans.
Inspector Bob Innes said: “This was a frightening attack on an elderly man, which has left him badly shaken.
“We are eager to trace the man responsible as soon as possible. Anyone who was in the area at the time, and saw anything suspicious, is asked to contact us immediately.”
Those with information can contact Police Scotland on 101 or anonymously through Crimestoppers on 0800 555 111.