U.S. Security Alert: Recent Transaction Reversal Fraud (TRF) activity

U.S. Security Information Alert

U.S. Security Alert: Recent Transaction Reversal Fraud (TRF) activity

Recently there has been a great deal of activity on social media regarding fraud that uses prepaid cards.  A withdrawal is being made, followed by a fraudulent reversal, quickly after the cash is dispensed.

Some of the chat has referred to this as “jackpotting”.  By definition, jackpotting involves compromise of ATM internals, resulting in a “cash-out” of the ATM.  This is not jackpotting, but rather a potentially new type of Transaction Reversal Fraud (TRF).  The loss for each transaction is limited to the value of the card being used.

We do not have complete clarity as to the detail of how this fraud is taking place and why it is being successful.  It does not appear that it is due to any fault or negligence on the part of the ATM operator.  Therefore, based on what we are able to determine, losses should be the responsibility of the issuer or processor – not the ATM operator.

ATMIA and ASA will continue to monitor this activity. Updates will be provided as more information becomes available.