Article

EAST publishes third European fraud update for 2011

Cash trapping is on the rise and the U.S. remains at the top for skimming losses.

November 15, 2011

The European ATM Security Team published its third European Fraud Update for 2011 this week. The report is based on country crime updates given by representatives from 21 countries in the Single Euro Payments Area, and 2 non-SEPA countries, at the EAST meeting held in Edinburgh on Oct. 12.

Skimming attacks at ATMs were reported by all the countries, with six countries reporting decreases in such incidents, and two countries reporting increases. The usage of analogue skimming devices appears to be increasing with devices incorporating MP3 and MP4 players reported. In one country most attacks are occurring at ATMs where anti-skimming devices have been fitted.

The trend of the majority of skimming-related losses occurring outside of EMV liability shift areas continues; from January to September 2011 such losses were reported in 47 countries outside of the SEPA and in 12 countries within SEPA.

The USA remains the top location for such losses, followed by the Dominican Republic, Russia and Brazil. Regional card blocking (card issuers blocking domestic payment cards for usage outside of Europe) continues to be successful with one country reporting significant resultant falls in skimming-related losses.

Skimming attacks against street-located parking ticket machines that accept PIN-based transactions have been reported by one country, the first time this has been seen.

Cash trapping incidents were reported by nine countries and this type of attack is increasing in most of them. This reflects a continuance of the trend reported in EAST's most recent European ATM Crime Report (covering January to June 2011).

"Cash trapping is a growing problem, although counter-measures are proving effective. Unlike with other forms of ATM crime, cardholders are on the frontline for cash trapping attacks, as they face immediate financial loss and need to be pro-active to get their money back," said Lachlan Gunn, EAST director and coordinator.

During a cash trapping attack, criminals prevent cash from a genuine transaction being dispensed – and then remove it when the cardholder has left the ATM.

Ram raids and ATM burglary were reported by seven countries, and one country reported that the introduction of ink staining devices has stopped such attacks. Explosive gas attacks were reported by three countries.

The following countries supplied full or partial information for the update: Austria; Belgium; Canada; Czech Republic; Denmark; Finland; France; Germany; Hungary; Ireland; Italy; Liechtenstein; Malta; the Netherlands; Norway; Poland; Portugal; Romania; Russia; Spain; Sweden; Switzerland; and the United Kingdom.

EAST is a non-profit organization whose members gather information from, and disseminate EAST reports to ATM deployers and networks within their countries/regions. While the main focus of EAST is on ATMs, the group also focuses on all payment terminals that have a direct impact on crime perpetrated at ATM locations.

EAST members represent 28 countries with a total deployment of 555,979 ATMs.

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