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An article relating to this blog post on Finextra:

ADT unveils anti-skimming tool

Skimming - a way criminals use high-tech electronic tools to capture personal financial information and steal money from automated teller machine (ATM) customers - is one of the financial industry's f...

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Criminals Target ATMs to Steal Credit Cards

Skimming is one of the financial industry’s fastest-growing crimes, according to the U.S. Secret Service. Also, the worldwide ATM Industry Association reports over $1 billion in annual global losses from credit card fraud and electronic crime associated with ATMs.

Skimming is a relatively low tech crime. It can occur in a few different ways. The most common is when a store clerk takes a wedge card skimmer  and runs your card through and skims the information off the magnetic strip.

Once the thief has the credit or debit card data they can place orders over the phone or online.

They can also rip the data from the wedge and burn to blank “white” cards. These white cards are effective at self checkouts or when the thief knows the clerk and they “sweetheart” the transaction. These white cards can also be pressed with foils to look like a legitimate credit card.

Then there is a more sophisticated skim. Thieves actually place a hard device on the face of the ATM that looks like the ATM. It’s almost impossible for a civilian to know the difference unless they have an eye for security, or the skimmer is of poor quality.

Often the thieves will mount a small pinhole camera on the side of the ATM in a brochure holder to extract the victims pin number.

Its not just ATMs that are potential marks, gas pumps are just as vulnerable. See video of me discussing Here and another article Here

ADT Unveils Anti-Skim Tool

ADT has a new technology that prevents ATM of skimming. I haven’t seen it yet, but it sounds promising. The ADT Anti-Skim™ ATM Security Solution helps prevent skimming attempts and detects skimming devices on all major ATM makes and models.

ADT’s anti-skim solution is installed inside an ATM near the card reader, making it invisible from the outside. The solution detects the presence of foreign devices placed over or near an ATM card entry slot, without disrupting the customer transaction or operation of most ATMs. Also, the technology helps prevent card-skimming attempts by interrupting the operation of an illegal card reader.

The ADT Anti-Skim ATM Security Solution:
• Helps protect the integrity of cardholders’ personal financial information during ATM transactions.
• Can trigger a silent alarm for command center response and coordinate video surveillance of all skimming activities.
• Requires no software adjustments to the ATM.
• Does not connect to or affect the ATM communications network.
• Has more than 40,000 successful ATM applications worldwide.

Prior to its North American introduction, the ADT Anti-Skim ATM Security Solution was successfully field tested on dozens of ATMs of four major U.S. financial institutions in controlled pilot programs. Testing pilots yielded positive results, with no known skimming compromises occurring.

Again, I haven’t seen it. But would like a first hand demonstration. ADT, Have your peeps call my peeps.

Robert Siciliano Identity Theft Expert discussing ATM skimming Here

a member-uploaded image

Comments: (1)

A Finextra member
A Finextra member 13 March, 2009, 09:22Be the first to give this comment the thumbs up 0 likes

"Its not just ATMs that are potential marks, gas pumps are just as vulnerable. See video of me discussing Here and another article Here"

Being an american who has lived in europe since 2000, I understand that in the U.S., the points of compromise are limited to ATMs and gas pumps.

But in Europe, the points of compromise are everywhere : ATM, gas pumps, parking, dvd rentals, movie tickets, food kiosks, tolls, buying metro tickets, and the list goes on...

Because of chip and pin implementation, the proliferation of stand-alone terminals that accept chip and pin has provided a profitable playground for fraudsters.

I have nothing against the chip. I do think that the static pin is weak.

Changing the pincode from static to dynamic can get rid of card fraud.

Unlike the implementation of chip and pin, you don't need the entire universe of POS and ATM manufacturers, payment network providers to implement dynamic pin-codes. The common denominator is the issuing bank. Dynamic pincode validation can be and should be done by the issuing bank's authorization system.

The card's magnetic stripe can make dynamic pin-codes happen. For ease of use, the card can even be programmed to accept a static pin-code for amounts below a certain limit (for example anything below 20 euros) and require a one-time pincode for amounts above this limit.

Dynamic pin-codes will also help people like me that just can't seem to remember a static pin-code. So if you know of an issuing bank that wants to try this, pass them over to me. We can make it happen.