The National ATM Council, Inc. ("NAC") presented compelling testimony to the Committee on Consumer Affairs of the New York City Council, at its hearing this past Thursday, on a proposed ordinance that would impose costly and burdensome new security regulations for retail ATMs throughout NYC.
NAC advised the Council last week that proposed City ordinance Int. 1406-2016 would not achieve its stated goals, but would instead result in many ATMs being removed from service and higher costs to consumers for those ATMs that remain.
"The industry has been hard at work on these very same security issues and we've made significant real world progress, without the need for a costly, 'one-size-fits-all' regulatory approach," said NAC Executive Director, Bruce Renard. "NAC has provided compelling evidence that retail ATMs are safer for consumers to use versus unattended outdoor bank ATMs and we will continue working hard to keep it that way."
NAC also presented information at the hearing on how other countries previously migrating to EMV technology have experienced increased card related fraud, as criminals moved to use stolen magnetic stripe card data before the EMV chip transition was complete.
"In recognition of the increased short term threat triggered by EMV implementation, NAC has worked proactively with the merchant community to get ahead of the curve on implementing 'best practices' for maximizing security at retail ATMs throughout the U.S.," said Renard.
"Rather than an unnecessary and costly new set of regulations and 'one-size-fits-all' requirements for retail ATMs in NYC, the Council should pursue stronger criminal penalties and enforcement programs to apprehend, prosecute and incarcerate those who seek to commit crimes against ATMs or ATM consumers in the City," said newly elected NAC Chair, George Sarantopulos. "NAC is committed to making sure our industry sector stays ahead of the curve when it comes to keeping retail ATMs completely safe and secure for consumers."
NAC will be working with Chairman Rafael Espinal and other members of the New York City Council Committee on Consumer Affairs to formulate alternatives that will more effectively enhance ATM security, while not inadvertently harming NYC ATM businesses, merchants or consumers.