Criminals Adopt New Deep-Insert Skimmers To Compromise ATMs

Krebs on Security, a news site that investigates cybercrimes, is reporting a rise in the use of so-called "deep-insert" skimmers. The devices, which are used to "skim" consumers' credit and debit card data from ATMs, represent the latest technological development in the criminal arsenal. Inserted directly into the card slot, the ultrathin devices are difficult to detect and guard against.

According to industry experts, this new generation of skimmer is being deployed against a wide range of ATM makes and models. The devices, which are said to feature a thin plastic housing, include a sophisticated design that reads, then transmits magstripe data without the consumer's knowledge. Even the new chip-and-pin or EMV cards remain vulnerable due to the continued use of the magstripe to store crucial data.

The Krebs deep-skimmer report cited NCR Corp., which claims it is seeing a rapid rise in wafer-thin fraud devices made to be hidden inside of an ATM's card acceptance slot.

"Neither NCR Skimming Protection Solution, nor other anti-skimming devices, can prevent skimming with these deep insert skimmers," NCR warned banks in a recent security alert. "This is due to the fact the skimmer sits well inside the card reader, away from the detectors or jammers."

According to NCR officials, the skimming devices have been used in ATMs operating in the U.S., as well as in Bulgaria, Greece, Italy, Switzerland, Turkey and the UK.

Click here to see the Krebs story and accompanying photos.