It has always been of the uppermost importance to ensure that your ATMs are secure, for both your customers and your employees. However, with the country in economic uncertainty, nefarious criminals are coming out of the woodworks to disrupt ATM security in any way possible.
Criminals Caught
Recently, in Delaware County Pennsylvania, a 2019 case of ATM skimming led to a federal bank fraud arrest.
Around the 2019 Labor Day weekend, there were unauthorized cash withdrawals that compromised hundreds of Delaware County bank customers. The fraudulent activity was linked to two Sidney Federal Credit Union ATMs, according to a press release by PressConnects.
The release stated that approximately 523 customer accounts were affected by the scheme.
“On Oct. 27, the FBI charged Nicolae Mares, a man with past arrests related to grand larceny and card skimming in the New York City area. Mares, whose age and last known address weren’t listed in records, was charged with a federal felony count of bank fraud.
“When questioned by law enforcement, Mares said he traveled around skimming information from ATMs while working for an unnamed person, received 20-25% of each transaction and spent it largely on crack cocaine.”
Skimming on the Rise
According to a recent survey by the ATM Industry Association (ATMIA), 86% of the respondents experienced ATM fraud in the last 12 months – 96% physical fraud and 76% cyber fraud.
The ATMIA survey stated, “For those with experience of ATM fraud attacks, the most common type of ATM fraud was skimming at the ATM. This is consistent with the 2017 survey. After skimming at the ATM, PIN compromise, transaction reversal fraud, cash trapping, ATM malware, for card data, eavesdropping, card trapping, jackpotting the dispenser and money laundering rank among the most common types of fraud attack.”
Additionally, 91% of survey respondents said that skimming devices were getting smaller.
With criminal activity on the rise and skimming technology getting smaller, it’s all the more important for ATM owners and operators to frequently scan and maintain their ATMs. By keeping software updated and machines checked on a regular basis, it is possible to reduce the opportunity that scammers have to tamper with their machines, thereby helping to ensure a safe environment for both customers and employees.
