So says the European ATM Security Team (EAST) in a new report that indicated a 24% increase in ATM crimes during the first six months of 2010 compared to the same period last year. The worrying numbers mark an all-time high thanks to a fresh spin on old gadgets.
Most worrying is the new DIY tech criminals are using to skim—read the data on your ATM card—involving very simple parts. Some hackers even sell you the necessary hardware that’s placed over the ATM card reader’s throat. The camouflaged ATM part either has a mini-camera or carries a stealth recording device that reads the data on a card’s magnetic strip.
To think these gadgets are from cannibalized cassette and mp3 players that aren’t even difficult to build. The techniques for this have been around since the early 90s and were even described in a 1992 issue of the uber-underground hacker webzine Phrack.
Evolution of ATM Skimming Techniques
ATM skimming has evolved significantly over the years. Initially, skimmers were bulky and easily noticeable, but modern devices are sleek and sophisticated. They can be installed in a matter of seconds and are often indistinguishable from the original ATM components. Some advanced skimmers even use Bluetooth technology to transmit stolen data wirelessly, making it even harder to detect and trace the criminals involved.
In addition to physical skimmers, criminals have also started using malware to compromise ATMs. This malware can capture card data and PINs directly from the machine’s internal systems, bypassing the need for external skimming devices. This method is particularly dangerous because it can affect multiple ATMs simultaneously and can be harder to detect and remove.
Impact on Consumers and Financial Institutions
The rise in ATM skimming has significant implications for both consumers and financial institutions. For consumers, the immediate impact is the potential loss of funds and the hassle of dealing with fraudulent transactions. Victims often have to go through a lengthy process to get their money back, which can be stressful and time-consuming.
For financial institutions, the cost of ATM skimming goes beyond reimbursing customers for their losses. Banks also have to invest in advanced security measures to protect their ATMs, conduct thorough investigations to identify and apprehend the criminals, and manage the reputational damage that comes with being associated with such crimes. The financial burden can be substantial, and smaller banks may struggle to keep up with the ever-evolving tactics of ATM skimmers.
Despite this bothersome bit of news, EAST also noted that the crimes may be more common but the resulting losses have dropped compared to previous years. This could be attributed to improved detection methods and increased awareness among consumers about the risks of ATM skimming.
One of the most practical countermeasures to curb skimming is to cover the ATM’s keypad while you type in the numbers. This simple action can prevent hidden cameras from capturing your PIN. Additionally, try to limit ATM card use for deposits and withdrawals. Use cash a lot if possible, as this reduces the chances of your card being skimmed.
Financial institutions are also taking steps to combat ATM skimming. Many banks are now using anti-skimming devices that can detect and disable skimmers. Some ATMs are equipped with jamming technology that prevents skimmers from reading card data. Banks are also investing in advanced monitoring systems that can detect unusual activity and alert authorities in real-time.
In conclusion, while the rise in ATM skimming is a cause for concern, both consumers and financial institutions can take steps to protect themselves. By staying vigilant and adopting best practices, we can reduce the risk of falling victim to these sophisticated crimes.
Via Engadget
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