Huge rise in cash-machine crime, watchdog warns

Huge rise in cash-machine crime, watchdog warns

An EU watchdog today warns of an "alarming increase" in cash machine fraud by organised criminal gangs across Europe using sophisticated skimming technology, together with an explosion in ram-raiding attacks on ATMs.

ATM crime in Europe jumped to €485m (£423m) in 2008 following a 149% rise in attacks on cash machines. Gangs are turning to Bluetooth wireless technology to transmit card and pin number details to nearby laptops and using increasingly sophisticated techniques to skim cards.

More conventional smash-and-grab attacks are also on the rise, says Enisa, the European Network and Information Security Agency. It reports a 32% rise in physical attacks on ATMs, ranging from ram raids to the use of rotary saws, blowtorches and diamond drills. It blames the increase on gangs from eastern Europe.

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Europe, including the UK, has 384,000 cash machines, with crime rates rising as they spread to more remote locations. Enisa found increases in the use of small spy cameras, false pin overlays and even entirely fake machines.

One development is the introduction of fake entry devices on the outside of bank lobbies containing a number of ATMs. A skimming device is placed in a card reader designed to open the door of the lobby. Once the customer is at the machine, a further spy camera collects pin numbers.

Fake cash machines – some of which even hand out real money – are increasingly being found in and around shopping centres and other public locations. "These look like real ATM machines and some have even been known to dispense cash. All cards used at these machines are copied, and the pin information obtained from the pin pad."

Enisa also warns of more conventional "distraction" skimming, where gangs observe the pin number as it is typed in, then distract the cardholder by dropping a banknote nearby.

Successful cyber-attacks on bank or retailer networks are still relatively rare. But Enisa cites a recent incident in Russia in which ATMs were infected with malware that collected both card details and pin numbers.

Enisa recommends that card users avoid ATMs with extra signage or warnings, avoid freestanding machines, and try to use ATMs inside banks.

It adds: "ATMs do not have the same security measures all over the world, and it is a good rule for cardholders to change their pin every time they've been abroad. Fraudsters will also try the pin they have to access accounts on other cards, so a good rule is always to have a different pin number for different cards."

Common scams

• False panels over the card reader

Small skimming device placed over card reader, with fake pin pad overlay or tiny camera to capture pin

• False fronts

False front panel placed over fascia of ATM

• Door entry devices

Skimming device placed inside card reader which users swipe to gain entry to banking lobby with ATMs

• Side-mounted card slots

Device placed beside normal ATM card slot telling users to "slide card here first"

• Fake ATM machines

Dummy cash machines in public places that are used to copy cards, with Pin information captured from the Pin pad.

guardian.co.uk © Guardian News and Media 2009