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EAST releases first European fraud report for 2015

ATM skimming was reported by 19 of 21 countries, and the use of internal card reader skimming devices appears to be on the rise.

March 27, 2015

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The European ATM Security Team has published its first 2015 report on the state of ATM fraud in Europe. The document is based on country crime updates provided by representatives of 18 countries in the single euro payments area, as well as three non-SEPA countries.

Card skimming at ATMs was reported by 19 of 21 countries, with decreases reported by nine countries and increases by one country, according to an EAST press release. Three countries reported card data compromise via wire-tapping or "eavesdropping."

The use of card reader internal skimming devices appears to be on the rise. This type of device is inserted through the card reader throat and into the card reader, where it sits capturing card data.

One country reported finding skimming devices produced by a 3D printer. However, the release said, this technology can also be used to battle skimming. The EAST Financial Crime and Security Forum 2105 to be held June 11–12 at The Hague will feature a demonstration of 3D printing technology helping to validate anti-skimming technology.

The trend of skimming-related losses occurring outside of EMV chip liability shift areas continues, and the U.S. remains the top location for these losses. Thailand and Indonsia were the No. 2 and No. 3 targets, respectively. In all, 46 countries and territories outside SEPA and eight within SEPA reported skimming-related losses.

Nine countries reported skimming attacks on non-ATM terminals. Five countries reported attacks on unattended payment terminals at filling stations; two reported skimming attacks at railway or other transport ticket machines.

At the instigation of U.K. authorities, the Europol European Cybercrime Centre has supported an 18-month EU-funded project against payment card fraud that has resulted in 59 arrests, 32 prosecutions and 17 convictions, as well as the disruption of five organized crime groups, EAST said.

In "Project Sandpiper," authorities recovered 52,812 compromised card numbers with estimated savings to the banking industry of more than 23 million pounds ($34.3 million). EU-based criminals had been misusing financial credentials mainly in remote overseas destinations.

Cash trapping attacks appear to be on the decrease, reversing a previously reported trend, EAST said. Fourteen countries reported such attacks. The overall decrease can be attributed to the success of customer awareness campaigns, as well as preventative measures put in place at ATMs. Compared with previous years, the number of transaction reversal fraud attacks also appears to be decreasing.

ATM malware incidents were reported by three countries. These were ATM cash-out, or jackpotting, attacks. In one of the countries it is believed that ATMs were infected directly through USB 'drops', or remotely through the ATM network.

Ram raids and ATM burglary were reported by nine countries, with one reporting increases and another reporting significant decreases.

Explosive gas attacks also were reported by nine countries, with two reporting significant increases. Two countries reported attacks on ATMs using solid explosives. 

Reporting countries: Austria; Belgium; Canada; Czech Republic; Denmark; Finland; France; Germany; Ireland; Italy; Liechtenstein; the Netherlands; Norway; Portugal; Romania; Russia; Spain; Sweden; Switzerland; the United Kingdom; Ukraine.