Survey Charts Decline In ATM Fraud

SIOUX FALLS, SD -- There was a general slowdown in ATM fraud, with reported crime increases falling from 51% in 2015 to 42% in 2016, according to the ATM Industry Association's 2016 annual fraud survey. Whether this is the beginning of a larger trend remains to be seen, but the ATM industry seems to be greeting it as a hopeful sign.

"This is good news," said ATMIA chief executive Mike Lee. "However, the wide range of types of attack, as well as the technologies and tools used by fraudsters, remains a daunting challenge which calls upon us to stay vigilant and cooperate with law enforcement in stamping out crimes targeting ATMs."

The study conducted by ATM security expert Douglas Russell provides not only the big picture of crime facing the industry, but also the type of detailed information required to take practical steps to deal with many specific threats. And there are many specific threats. They include skimming, PIN compromise, deposit-related fraud, cash trapping or card trapping, dispenser jackpotting and transaction reversal fraud, along with eavesdropping, card data malware, shimming chip card data, network packet sniffing and other network compromises for card data.

Lee recommends that ATM industry members and stakeholders read the 2016 fraud survey and to consult ATMIA's online library of international ATM security best practices, which is free to association members.