European Crime Information

We continue to note the changing crime patterns, primarily caused by “displacement” crime. While Western Europe moves towards completing “Chip & PIN” at the ATM’s we have noted that skimming continues on other magnetic stripe devices particularly POS and unattended ticketing/petrol payment terminals. Shell have recently announced an initiative involving biometrics in order to reduce crime.

Displacement crime has fallen into two categories:

• Increase in physical attacks with a reported 60% increase (approximately 1800 incidents in the first six months of 2007 value €15m).
• The use of skimmed cards in countries which are still predominantly magnetic stripe, and cards used in “card not present” (various reports from €350m - €500m).

Recent meetings in Eastern Europe also confirmed crime migration to those countries which have now changed to the Euro, but which have not implemented the successful security counter measures now introduced in many Western European countries.

It is important that all ATMIA members who provide security solutions and equipment, continue their efforts to assist both Western and Eastern European ATM deployers, to understand the merits of good security practice as recommended by GASA, and to use the “Best Practice” manuals as sales leverage.  

Pro – Cash Lobby

ATMIA are joining forces with ESTA in support of the pro cash lobby. The cost effectiveness of the ATM in distributing cash is well proven, but the potential replacement of cash using card technologies remains unproven. The card technology is currently the major weakness in identification/verification as noted by the significant “card not present” losses given above.

A meeting has been organised by ESTA for mid November, the results of which will be summarised in our next newsletter.

SEPA & BASEL II

Costs associated with meeting both SEPA and BASEL II requirements, continue to impact investment in future self service technologies. Currently dates established by the European Central Bank for SEPA compliance appear likely to be delayed as most of the banking systems appear to be spreading cost. Currently across Europe less than half of the ATM’s and POS devices are EMV compliant with wide variations between countries, with UK, France, Belgium, Ireland well advanced, but Italy, Germany, Greece, and Spain lagging behind.

Members involved in providing “upgrade” systems and programmes should focus on assisting those countries which are still below the EU target schedule.

Future

Continued interest in new technologies will begin to influence self service strategies, with both the new card technologies (contactless payments and pre-paid debit cards), and mobile banking (m – commerce).

Security will continue to be a top priority during the assessment and potential introduction of such technologies, and ATMIA are discussing the setting up of a group in order to address concerns. These groups will be an off-shoot of GASA, following the same process as the introduction of current “Best Practice Manuals”.

For further details, or to participate please contact mike@atmia.com.