News

Low-tech fraud, explosive attacks on the rise for Europe's ATMs

October 29, 2013

EAST has published its European ATM crime report covering the period from January to June of 2013. The report shows that while the incidence of card skimming at ATMs continues to fall in EMV-enabled Europe, low-tech fraud incidents and ATM explosive attacks are experiencing a significant increase.

In its report, EAST cited a 32 percent increase in ATM-related fraud attacks during the first half of 2013 as compared with the same period last year. EAST attributed the increase to a surge in the number of cash trapping and transaction reversal fraud incidents.

A total of 7,885 such incidents was reported, up 77 percent from the 4,464 incidents in the first half of 2012. Both types of attack can be carried out in the EMV environment, however criminals take in less from these incidents than from high-tech skimming attacks.

Overall ATM related fraud losses of €124 million ($171 million) were reported, down 5 percent from the €131 million ($180 million) reported in the first half of 2012.

Of these losses the majority (€121 million/$167 million) are still due to card skimming, mainly outside Europe. The USA, 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 ($2.8 million).

Physical attacks on European ATMs increased by 4 percent (1,007 incidents compared with 968 in 2012). The rise was driven by an increase in solid explosive and explosive gas attacks at ATMs, EAST said. These attacks rose 74 percent, from 194 in the first half of 2012 to 337 in 2013, with one large country reporting this type of attack for the first time.

Such attacks were reported by eight countries, including four countries with more than 40,000 ATMs installed. Overall reported losses due to ATM physical attacks rose by more than 25 percent to €10 million ($14 million).

"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.

"As part of our strategic development we launched the EAST Expert Group on ATM Fraud this year, to provide a specialist expert forum for discussion of ATM-related fraud trends, fraud methodologies and countermeasures. In 2014 we are planning to launch the EAST Expert Group on ATM Physical Attacks to focus on all ATM related physical attack issues, including the solid explosive and explosive gas problem."

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