ATM Fraud Rising in Prevalence and Sophistication
Report by Harvey Mcewan
A study released earlier this year details the increase in ATM fraud, advising on how greatest to protect oneself against the threat of fraudulent activities. The study showed that whilst technology is becoming more refined, the illegal methods in practice are becoming even far more complicated.
The report, carried out by Javelin Technique & Study, concluded that practically a single in 5 credit or debit card fraud victims reported their PIN data stolen in 2009. In addition to this, it was found that ten% of all fraud victims in the USA encountered unauthorized ATM cash withdrawals.
These figures represent a notable boost on those of the earlier year, with a 16% rise overall in the amount of situations of ATM fraud. The survey interviewed 8,168 customers all through the study, acquiring details of their fraudulent experiences.
It is widely believed that the nature of ATM fraud is establishing in complexity, with perpetrators targeting the inner computer software of the ATM's rather than implementing the previously favored 'Skimming' attacks. The latter comprises of legitimate-looking hardware skimmers becoming strategically placed on the façade of the ATM these skimmers then copy the details from the magnetic strip of a credit or debit card.
In addition to this, criminals are becoming even more adept in the acquisition of PIN info by way of the theft of other private information and the help of a call centre representative. By gaining access to private data, fraudsters are capable to get in touch with the victim's bank and use this data to request a PIN change, as a result enabling them access to the victim's account. Though it is no longer possible for fraudsters to forge signatures, they have created approaches of accessing account details given that the introduction of EMV Chip and PIN computer software.
To defend buyers from this high-tech fraud threat, the Javelin Strategy & Investigation team insisted that economic institutions really should do much more to educate their clients on the risks of ATM fraud, and the steps which can be taken to minimise this risk.
On a a lot more good note, the analysis showed that some banks are in the method of installing new ATM computer software and hardware features aimed at minimising the threat posed by ATM fraud. Nevertheless, there remains much to do in the education of buyers, as well as re-instilling a sense of confidence inside the public. The study revealed that 23% of ATM fraud victims consequently left their economic institution due to a decreased level of trust and satisfaction.
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