ATM Compromises Surge Across Country As Thieves Implement New Strategies FICO Investigation

SAN JOSE, CA -- According to a recent FICO report, ATM compromises in the U.S. rose 546% from 2014 to 2015. Criminal activity was highest at nonbank ATMs, such as those located in convenience stores, where 10 times as many machines suffered security breaches in 2015, compared with 2014. Although the alarming trend was first spotted by FICO in May 2015, the final figures have shocked those in the industry.

FICO also reported that ATM compromises, typically initiated with so-called skimming devices that capture card data, were taking place over fewer days but in many more machines. The average duration fell from 36 days in 2014 to 14 days in 2015, with the average number of cards affected by a single criminal act cut in half.

"Criminals are taking a quick-hit approach to ATM theft and card fraud," said TJ Horan, vice-president of fraud solutions at FICO. "They are moving faster to make it harder for banks to react and shut down the compromises." ATM compromises in 2015 also proliferated across the country, whereas in 2014 the compromises were concentrated in large cities on the East and West Coasts.

Criminals have also shifted their focus to nonbank ATMs. According to FICO data, nonbank ATMs accounted for 60% of all compromises in 2015, up 39% from the previous year. As banks increased their security measures, ATM experts observed, thieves shifted their attention to nonbank soft targets.

Best known as a credit score company, FICO also monitors bankcard transactions. Founded in 1956, the San Jose, CA-based firm is a pioneer in the use of predictive analytics and data science to improve operational decisions. It holds more than 165 U.S. and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, telecommunications, health care and retail, among other industries.