News

ATMcommunity promotes jitter technology to combat ATM skimming

December 28, 2010

The ATMcommunity has recommended deployment of jitter technology as an effective tool in combating ATM skimming, a growing financial crime.

"Jitter technology works via a stop start or jitter motion inside the card drive specifically designed to distort the magnetic stripe details should they be copied onto a foreign card reader inserted into the ATM," said the ATMcommunity, which claims to represent more than 780 professionals in 54 countries.

Skimming occurs when thieves attach devices to an ATM to steal cardholders' card data. They use the stolen information to manufacture fake cards in order to loot cardholders' accounts.

The organization alleged that fraudsters are seeking ways to bypass jitter technology because it works on ATMs with motorized card readers. Jitter technology is not effective on machines in which cardholders simply swipe their cards.

The ATMcommunity cited U.S. Secret Service statistics that say ATM skimming is the fastest-growing electronic fraud risk in the United States.

ATM skimming is expected to top more than $1 billion in annual global losses from credit card fraud and electronic crimes associated with ATMs, reports the Secret Service.

Although the ATMcommunity promotes jitter technology, the organization does not consider it a silver bullet. The ATMcommunity adds that end-to-end encryption on all payment devices would render skimmed data useless.

The major ATM manufacturers, including NCR Corp., Diebold Inc., Wincor Nixdorf AG and Fujitsu, employ jitter technology.

Included In This Story

---

Diebold Nixdorf

As a global technology leader and innovative services provider, Diebold Nixdorf delivers the solutions that enable financial institutions to improve efficiencies, protect assets and better serve consumers.

Request Info

Learn More