News

EAST records drop in ATM card fraud, increase in explosive attacks

October 14, 2013

The European ATM Security Team has reported a 32 percent increase in ATM-related fraud attacks, despite a 9 percent fall in card skimming incidents. The increase reflects a surge in the number of cash-trapping and transaction-reversal fraud incidents from 4,464 in 2012 to 7,885 in 2013. 

Overall ATM-related fraud losses of €124 million ($168 million) were reported, down 5 percent from 2012. Of these losses the majority (€121 million/$164 million) are still due to card skimming, mainly outside Europe. The United States, the Dominican Republic and Brazil are the top three reported locations for such fraud. Losses due to cash trapping and transaction reversal fraud rose 31 percent to just under €2 million ($2.7 million).

Physical attacks on European ATMs increased by 4 percent to 1,007 incidents, driven by an increase in solid explosive and explosive gas attacks. These attacks rose 74 percent, from 194 in 2012 to 337 in 2013.

Overall reported losses due to ATM physical attacks rose by more than 25 percent to €10 million ($14 million). The average cash loss for ram raids, ATM burglary and explosive attacks is €10,517 ($14,261) per incident.

"This rise in solid explosive and explosive gas attacks is of great concern to the industry," said EAST director and coordinator Lachlan Gunn. "In addition to cash losses, collateral damage can be significant, as can the risks to industry staff and other parties."

Gunn said that following this year's launch of the EAST Expert Group on ATM Fraud, the organization would launch a parallel group in 2014 to provide a specialist expert forum for discussion of ATM physical attack issues.

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