LONDON -- The City of London Fraud Squad reported a sharp rise in so-called Lebanese loop fraud, in which thieves use devices to trap ATM users' cards in machines, over the past 18 months.
In many cases, the fraudsters also used miniature cameras to record victims' PINs rather than using the more old-fashioned -- and riskier -- "shoulder surfing" technique.
According to a report in the Times, detectives have also reported increasing incidents of thieves attaching skimming devices to banks' lobby entry swipe-card systems, enabling them to record and clone cards.
Richard Waight, detective sergeant of the City Fraud Squad's Economic Crime Department, said, "Criminals are taking advantage of increasingly sophisticated technology which saves them from the risk of actually having to shoulder surf victims."
Waight said a significant number of trapping devices had been seized in London during the past few weeks, and officers had made a number of arrests involving Eastern European criminal gangs.
The Association for Payment Clearing Services (APACS), which represents the banks on payment issues, has reported a 37 percent increase in ATM fraud in the past 12 months, rising from £21.2 million (about $33.3 million U.S.) to £29.1 million ($45.8 million U.S.)
Detective Chief Superintendent Ken Farrow, head of the City of London Fraud Squad, told the Times: "Card-readers and small micro-cameras are easy for people to purchase, making it easier for criminals to get hold of the technology they need."
He added, "We are concerned about this increasing problem and are working with the banks to develop new technologies to fight it."
