News

FICO stats show (surprise) an increase in ATM skimming

March 29, 2013

A new FICO report says that fraud is up and the biggest trend is in ATM skimming. Bank ATMs accounted for 46 percent of skimming incidents in 2012, according to FICO numbers.

In the same period, skimming at POS devices dropped. Nearly 80 percent of skimming occurred at the POS in 2011, but that share fell to 36 percent in 2012, CU Times reported.

This could be in part because the prices of skimming devices have dropped to less than $5,000 said FICO executive John Buzzard. Discounted prices are allowing more amateurs to enter the market, he said.

At those prices, the fraudster can leave the skimmer in place after collecting data via Bluetooth. Abandoning the skimmer reduces the threat of detection for the criminal, Buzzard said.

CU Times quoted FICO stats showing that card fraud is up in 20 states, with large increases on the East Coast and the biggest jump — 26 percent — in South Dakota. 

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