News

EAST reports a new skimming threat - fake ATMs

November 21, 2013

The European ATM Security Team has published its third European Fraud Update for 2013. In a new development, one EAST national member has reported the use of fake ATMs for card and PIN compromise.

The EAST report is based on crime data provided by representatives of 19 countries in the Single Euro Payments Area and three non-SEPA countries. Twenty of the 22 representatives reported skimming at ATMs, with increases in eight countries and decreases in six countries.

Additionally, skimming devices placed on ATMs with dip readers appear to be becoming more prevalent.

Losses from ATM-related skimming continue to migrate away from EMV chip liability shift areas. From January to September 2013, 38 countries and territories outside of SEPA reported losses compared with just six within SEPA.

The USA is still the top location for skimming-related losses, followed by Thailand and Colombia. For the first time significant losses are also being reported in India.

European fraud countermeasures such as geo-blocking, fraud monitoring capabilities and fraud detection continue to improve.

Cash trapping was reported by thirteen countries, with three of them reporting related arrests. Nine countries reported transaction reversal fraud incidents. The use of the cash claw continues in both types of attack.

Card trapping at ATMs was reported by seven countries. Criminals are also using distraction methods to capture cards, typically targeting elderly people. Six countries reported such attacks. 

Ram raids and ATM burglary were reported by ten countries; nine countries reported explosive gas attacks and two also reported attacks on ATMs using solid explosives. The overall rise in explosive attacks in Europe appears to be continuing, and their impact is growing.

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