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Conference attendees heard from industry leaders from the United States and the United Kingdom. Lecturers discussed ways deployers can reduce ATM-related crimes such as smash-and-grabs, phishing and skimming, and can restore consumer trust in the industry.

During her keynote address, Anna Istnick, senior product marketing manager for Diebold Inc., said the industry must pay attention to fraud issues and how they impact the consumer.

Why? Because consumer confidence dictates ATM use.

Istnick and other industry reps said misleading media reports and a lack of communication between the industry and consumers have contributed to the public perception that the ATM market, especially the off-premises sector, is not safe.

"The media creates fear with consumers," Istnick said. "We have to educate the entire industry, and not by instilling fear."

That education needs to consist of an industry-wide outreach approach to quell misrepresentations about ATM-related crimes.

Peter Kulik, EFT product manager for Fifth Third Processing Solutions, said consumers don't know the difference between identity theft and ATM fraud.

"The ATM, as an integral part of our payment system does relate to identity theft," Kulik said. However, he said a person's identification can not be stolen if their ATM card is.

Kulik said the payments industry needs to work together in order to ensure consumer confidence, also deployers need to find the balance between cost and risk. "Branding will become as important as convenience and location."

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Nearly 50 percent of U.S. ATMs are placed by independent sales organizations, said Marilyn Kilcrease, president of Temecula, Calif.-based Creative Card Solutions LLC.

Despite the prevalence of white-label ATMs, speakers said consumers are still under the impression they are unsafe.

Istnick and others say the industry must work together to educate consumers and industry personnel about the types of ATM crime and ways people can protect themselves and their cards.

(Photograph by Valerie Killifer) PDNB, RBS Lynk and 3SI Security Systems set up exhibits at ATMIA's security conference.

Consumer education will consist of statement stuffers outlining generic fraud information, but no schedule has been outlined for media outreach.

"We did public service announcements for a number of years, but consumers trust financial institutions so they're going to listen to their banks," said Kirk Ergang, senior vice president of debit services for the Star Network.

Companies such as NCR Corp., Diebold and Palm Desert National Bank have launched Internet fraud sites for consumers to access. And to help disseminate information for industry personnel, ATMIA, in partnership with its Global ATM Security Alliance, launched Cognito in 2004. Cognito is an online global ATM crime data management system that covers crime information and security best practices. It also includes a crime reference library and an information-sharing database. The Web site tracks regional trends, and users can access white papers, fraud alerts and crime reports from the fraud library.

The ATM industry hasn't always shared information, but it is getting better.

Processors, network and service providers, FIs and ISOs are starting to work together to combat ATM crime.

(Photograph by Valerie Killifer) Scottsdale's McDowell Mountains create a scenic backdrop for ATMIA's Security in the Americas conference.

"I think we've come a tremendous way as an industry for sharing data," said Mark Coons, president of Charlotte, N.C.-based American Special Risk LLC. "Education and communication are key over the next 12 months."

But part of the cooperative effort needs to include more organizations reporting ATM crime.

"FIs don't like reporting fraud, let alone defining it," Ergang said. "A lot of FIs aren't in the ATM channel for revenue; they're in it because they have to be."

Wayne Vandekraak, president of Portland, Ore.-based Solvport LLC, an ATM and kiosk service company, said the industry should collaborate to prosecute ATM fraudsters, daunting as the task may be.

To catch criminals, a global approach also may have to be taken.

"The industry needs to intensify global coordination of its security resources, including intelligence," said Graham McKay, president of ATMIA Europe. "Real masters of crime are hiding and setting up franchises with organizations in other continents."

In an effort to thwart ATM crime, Europe began to implement a chip and PIN system, better known as the Europay, MasterCard and Visa standard, in 1998.

Martin Lewis, who manages ATM-fraud control for the United Kingdom's payment association, APACS, said 140 million U.K. cardholders are now on the chip and PIN system. In addition, more than 59,000 ATMs were upgraded to support the program.

(Photograph by Valerie Killifer) About 160 attendees gathered in Scottsdale, Ariz., for ATMIA's Security in the Americas conference.

The program had a significant impact on fraud. In 1995, 75 percent of ATM-related fraud was caused by lost or stolen cards. That number dropped to 20 percent in 2005.

Lewis said the chip and PIN system will spread; it's just a matter of when.

Jason Kuhn, vice president of operations for Willoughby, Ohio-based WRG Services Inc., a turnkey ATM provider, said ATM fraud will never fully be resolved. "But we need to continue to push to protect cardholder confidence," he said.

To help fight the issue of fraud as a whole, ATMIA has moved away from its East versus West conference designation. Its annual fall conference will continue, but the focus is expected to stay on security.

"I really feel the security-focused event is key and we will continue to do this," said Lana Harmelink, ATMIA's director of international operations.