Diebold takes 90-degree shift to counter ATM skimming
24 February 2015 | 6186 views | 0
ATM manufacturer Diebold claims to have found the answer to skimming fraud with a new reader that requires users to insert their card sideways on to prevent the copying of data stored on the magnetic stripe.
Diebold ActivEdge counteracts skimming technology that currently relies on the ability to read the magnetic stripe of an ATM card in the short edge orientation, by altering the way the card is inserted and read.
Estimated losses from skimming attacks at the ATM are believed to run beyond $2 billion globally, as the criminal fraternity has cranked-out increasingly sophisticated card reader overlays to capture information stored on the mag-stripe.
Diebold says ActivEdge prevents criminal modifications to the card reader and uses encrypted communication to the ATM's central processing unit to eliminate the ability to fraudulently capture and track card data. In addition, each reader is paired with a specific ATM, precluding installation of fraudulent readers. To counteract card trapping and fishing attacks, ActivEdge features automatic gate-locking functionality, which prevents fraudsters from freeing trapped cards.
The vendor says customer tests showed users did not mind changing their card insertion behaviour in return for safer and more secure transactions and were able to quickly determine the proper way to insert the card.
Bassem Bouzid, senior vice president and managing director, Diebold Emea, says: “Skimming devices have become more sophisticated and it was crucial to find an innovative solution to stop this type of fraud, which, today, represents the majority of overall ATM-related fraud, and restore consumers’ confidence in ATM transactions."