ATM Fraud

Chris Skinner posted some worrying/entertaining videos on ATMs on his blog, The Finanser, last week. Whilst The Real Hustle’s video on ATM skimming demonstrates how easy it is for criminals to tamper with the external ATM interfaces, the Trailer Park Boys video provides a sterling example of how not to do it. Perhaps the recent fraudsters convicted of ripping an ATM out of the wall were fans…

Unfortunately, not all criminals are this hapless and banks face an enormous challenge in tackling ATM fraud, where criminals use card skimming and video recording technologies to access card details. Prior to Chip and PIN, consumers had begun to lose confidence in ATM security as a result of increased fraud at the terminal. Banks cannot afford to repeat this situation. Whilst steps have been taken to educate consumers on protecting their card details at the ATM, much more needs to be done to address this issue. However, until technology that detects when an ATM interface has been tampered with is implemented, increased vigilance and regular monitoring against these threats by banks and those involved in ATM deployment and maintenance is essential.

Martin Macmillan