News

Lloyds improves ATM security

March 19, 2006

Silicon.com: Lloyds TSB is installing anti-skimming devices on all of its U.K. ATMs, as bank research reveals fraud is scaring people away from cash machines. The bank conducted research that showed three out of four people worry about fraudsters copying their card details when they use an ATM. Cash machine fraud totaled £65.8 million (U.S. $115.5 million) last year, and one in four of those surveyed is more nervous about using cash machines than previously. One in eight, in fact, has started withdrawing cash from machines inside branches and shops, thinking those ATMs are safer, and one in 10 is now using cash machines less often.

Although many ATMs have been upgraded to accept chip and PIN cards, if no chip exists on the card the machine reads the magnetic strip instead, making the read vulnerable.