ATM Criminals Never Give Up – And We Can't Either

The news lately has been quite full of reports about a new (sort of) ATM crime, which is popping up primarily at banks. The fraudsters begin by seeking out ATMs that can accept contactless card transactions for cash withdrawals. And they glue shut the card reader.

When they can’t get the card reader to work, frustrated consumers are then approached by a “friendly passer-by”, who suggests that they can complete their transaction using the “tap” functionality. Said consumer completes his/her transaction and leaves – quite pleased with the advice they received. Until they discover the next day that hundreds of dollars more – perhaps as much as $1,000 – has been withdrawn from their account.

In particular, consumers who have seldom or never used the contactless option for an ATM withdrawal may not be aware that additional transactions can still be performed – unless the card holder has deliberately ended the session. A valid PIN still must be entered. But it is suspected in these cases that the passer-by is either shoulder-surfing or transmitting images to their phone from a pinhole camera.

This is just the latest example of how criminals can re-work very old fraud techniques into something new. With the success of new high-tech countermeasures, we see many criminals going back to low-tech alternatives.

The most common type of ATM attack in Europe is Cash Trapping, which involves gluing shut the cash dispenser. Sound familiar? Low-tech and low return, but it gets the job done.

What the industry does have in its favor today that wasn’t there even a few years ago, is the ATM Security Association. Want to keep up to date with ATM crime trends? Attend an ASA committee meeting – they’re open to both ATMIA and ASA members. If you want more detailed information about what the bad guys are up to, though, you will need access to the CCMIS – the only global ATM crime database. That may be the only law-enforcement resource that you have access to, as well.

More good news. ASA annual subscriptions start at only $250 for small businesses. And even more good news. The promotional discount on new subscriptions has been extended – 25% off through May 12 use link https://www.atmsecurityassociation.com/subscription/join/?code=us2023 and promo code us2023. Reach out to me for more information.

Best regards to all,

David