News

Card–skimming attacks at ATMs continue

November 17, 2010

Card-skimming attacks at European ATMs have continued since the European ATM Security Team (EAST) issued its six-month report in October.

"The increase in ATM skimming incidents reported by EAST for the period January to June 2010 continues, with 11 countries reporting increases in such incidents and four countries decreases," according to an update delivered by the Edinburgh, Scotland-based organization. EAST did not provide figures.

EAST coordinator Lachlan Gunn said the magnetic stripe is a weak point on EMV-payment cards because it is vulnerable to copying by criminals.

Skimmed card data can be used to make counterfeit cards that can be used for cash withdrawals at non-EMV compliant ATMs and for other payment transactions, particularly card-not-present transactions, Gunn added. As a result, some European card manufacturers are migrating to EMV chip cards from magnetic-stripe cards.

Banks in China also are moving in the same direction. China UnionPay, China's national bank card association, announced that after 2015 banks will no longer issue magnetic-striped cards in China, Gunn said.