News

Police in Reno track growing number of ATM skimming attacks

January 31, 2010

The Reno (Nev.) Gazette-Journal reports that debit and credit cards in the area have been compromised and used for purchases totaling hundreds of dollars at stores in states as far away as Florida and Ohio. The compromised cards have been linked to ATM transactions, too.

The paper says that dozens of Reno residents have reported being the victims of similar crimes over the last six months. The surge in reports prompted police to track the fraud.

Detective Paul Villa of the Reno police Financial Crimes Unit says Eastern European organized crime groups have taken advantage of data breaches at financial institutions to clone credit and debit cards using computer software and cardstock with a magnetic strip. This week, police arrested a Bulgarian man in Massachusetts related to an international ATM-skimming ring that allegedly stole money from hundreds of accounts in the area.

Skimming is a growing problem, in Reno and other parts of the United States. The U.S. Secret Service estimated an annual loss of $1 billion specifically from ATM skimming.

"It's not just ATMs; it's everything," Villa said. "These cards are being cloned and then used at stores and for withdrawing money at ATM machines. Criminals make their hits, and then, they get out of the state."