News

Wincor Nixdorf intros new modules to combat ATM fraud

July 29, 2003

AUSTIN, Texas -- ATM manufacturer Wincor Nixdorf has developed security modules designed to protect ATM users from fraud attacks such as the Lebanese loop and card skimming.

According to a news release, the modules will be available as an option for the Wincor Nixdorf ProCashT ATM product family in 2003's fourth quarter. In addition, the modules can be retrofitted for other models of Wincor Nixdorf ATMs.

"Within the past several years, the number of ATM fraud attacks has grown at an alarming rate," said Scott Hackl, vice president of Wincor Nixdorf Banking Solutions USA, said in the release. "Wincor Nixdorf's enhanced security solutions will provide valuable financial protection for ATM users and act as a deterrent from potential ATM fraud criminals."

The Lebanese loop and card skimming are two of the most commonly used methods of ATM fraud. Both types of attacks involve tampering with the card reader.

For protection against card skimming, which occurs when a skimming device is placed over the card reader so that the card can be fraudulently duplicated, Wincor Nixdorf has developed a module with sensors that permanently monitor the ATM's card slot. If a fraudulent device is identified, the sensors immediately take the ATM out of operation, according to the release.

With the Lebanese loop, thieves place a sleeve of plastic or other material in the card reader to trap cards and prevent them from being retained by the card reader. When the customer leaves the ATM, the thief retrieves the card.

Wincor Nixdorf has developed a mechanism that prevents the illegally installed trapping device and the customer's card from being removed. When the card is inserted in the slot, it is drawn in completely and put out again to verify that the entire transport path is free. If the transport path is blocked, by the Lebanese loop for example, the ATM is taken out of operation before the customer has a chance to enter a PIN.

In addition, a solid steel mandrel mechanically blocks the card so that the criminal cannot remove it in a usable state. Only an authorized person can remove the card and return it to its rightful owner, according to the release.

Wincor Nixdorf's ATM solutions are exclusively represented in the United States by IBM Global Services, which markets, sells and services Wincor Nixdorf ATMs in the U.S. market.