A spate of recent
news reports highlight growing ATM fraud. Law enforcement in New York City reported a gang had stolen $500,000 from bank accounts via
ATM skimming. They installed cameras and skimming devices on the machines, and recorded the magnetic strips and the PIN numbers.
A recent survey points towards ATM fraud rising 5-9 percent. Seventy percent of those poled experienced a jump between 2007 and 2008. Many of the large data breaches that have occurred
over the past few years may have contributed to the fraud.
It’s simple enough to hack into a database and compromise cards and pins. It’s even easier to affix hardware to the face of an ATM machine and do the same. Once the data is compromised the identity thieves clone cards and turn the data into cash as quickly.
Bankinfosecurity.com recently published “7 Growing Threats to Financial Institutions”. This post is a play on that; “7 Growing Threats to You”
#1 Skimming; Hardware readily available online that is attached to the face of an ATM records user card information and pin codes. In this case you may still be able to perform a transaction.
#2 Ghost ATMs; A card reader is blocked off and replaced with hardware that supersedes the machine and records all your data without allowing a transaction. The machine reads “Can’t complete transaction”.
#3 Dummy ATMs; In some cases an ATM is bought off of eBay
(do a search) or elsewhere and installed anywhere there is foot traffic. The machine is set up for one purpose; read data. The machine might be powered by car batteries or plugged in the nearest outlet.
#4 Ram Raids; ATMs built into a wall or stand alone are being rammed by a truck and/or wrapped with chain and pulled out then loaded onto a truck. Once removed the thieves blow torch the machine taking the cash. This is a hot topic in Mexican banks, buy
certainly happens everywhere. A bank would be smart to install battery backed GPS in any machine.
#5 PIN ID’s; Sophisticated criminal hackers break into a database or skim magnetic strips. They then go to an online banking site with a hacking software that plugs in various well known PINs. These PINs might be consecutive numbers, peoples names, pets
names, birthdates, or other various simple pass phrases people use. When it finds a match it gives the criminal access to your account.
#6 Automated PIN Changes; Criminals go through the banks telephone banking system to change the customers PIN. They may try to change the customers ANI (Automatic Number Identification) is a system utilized by telephone companies to identify the DN (Directory
Number) of a caller. This might be accomplished via “Caller ID Spoofing”. They use publicly available data on the card holder such as name, card account number and last four digits of the social security number to “verify” them as the banks customer.
#7 SMS Attacks; AKA Smishing or
Phexting – phish texting. Customers receive a text from a bank on their smartphone requesting login information.
#8 Malware or Malicious Software; Researchers found a virus that specifically infects ATMs and takes over the machine logging card numbers and pins.
How to protect yourself;
First and foremost; Pay attention to your statements every two weeks. Refute unauthorized transactions within a 30-60 day time frame.
1. Pay close attention to everything you do at an ATM. Look for “red flags”, anything out of place. If your card sticks, odd looking configurations on the ATM, wires, two sided tape.
2. Use strong PINs, uppercase lower case, alpha and numeric online and when possible at an ATM and for telephone banking.
3. Don’t reply to phishing or phexting emails. Just hit delete.
4. Don’t just use “any” ATM. Choose ATMs at locations that are “more secure” than in the middle of nowhere.
5. Make sure your anti-virus is up to date.
6. Invest in identity theft protection and prevention. Because when all else fails its good to have someone watching your back.