East (the European ATM Security Team) has reported a 32% increase in ATM related fraud attacks, despite a 9% fall in card skimming incidents.
This overall increase is due to a surge in the number of cash trapping and transaction reversal fraud incidents. 7,885 such incidents were reported, up 77% from the 4,464 incidents reported in H1 2012. While both these attack types can succeed in the EMV environment, as normal transactions take place on EMV cards, criminals get less from them than from high tech skimming attacks.
Overall ATM related fraud losses of €124 million were reported, down 5% from the €131 million reported in H1 2012. Of these losses the majority (€121 million) are still due to card skimming, mainly outside Europe. The USA, the Dominican Republic and Brazil are the top three reported locations for such fraud. Losses due to cash trapping and transaction reversal fraud rose 31% to just under €2 million.
ATM related physical attacks on European ATMs increased by 4% (up from 968 to 1,007 incidents), driven by an increase in solid explosive and explosive gas attacks at ATMs. These attacks rose 74%, from 194 in H1 2012 to 337, with one large country reporting this type of attack for the first time. Such attacks were reported by eight countries, four of them were countries with more than 40,000 ATMs installed.
Overall reported losses due to ATM physical attacks rose by over 25% to €10 million. The average cash loss for ram raids, ATM burglary and explosive attacks is €10,517 per incident.
EAST Director and Coordinator Lachlan Gunn said, "This rise in solid explosive and explosive gas attacks is of great concern to the industry. In addition to cash losses collateral damage can be significant, as can the risks to industry staff and other parties. As part of our strategic development we launched the EAST Expert Group on ATM Fraud (EGAF) this year, to provide a specialist expert forum for discussion of ATM related fraud trends, fraud methodologies and counter-measures. In 2014 we are planning to launch the EAST Expert Group on ATM PhysicaATM Physical Attacks (EGAP) to focus on all ATM related physical attack issues, including the solid explosive and explosive gas problem."
*EMV (also known as 'chip and PIN') is an industry standard for Smart Cards and card readers, supported by the European Payments Council and the major payment schemes.