| Skimming is one of the financial industry's | | | | are equally vulnerable to this type of scam. |
| fastest-growing crimes, according to the U.S. Secret | | | | A customer at a New York City bank discovered a |
| Service. The worldwide ATM Industry Association | | | | skimming device on the face of an ATM, and went |
| reports over $1 billion in annual global losses from credit | | | | inside the bank to inform the branch manager. The |
| card fraud and electronic crime associated with ATMs. | | | | manager, who had never seen an ATM skimmer and |
| Skimming can occur in a few different ways. The | | | | wasn't sure what to do, took the skimmer and thanked |
| most common is when a store clerk takes your card | | | | him. The customer then remembered, from numerous |
| and runs it through a device that copies the information | | | | reports about ATM skimming, that there is usually a |
| from the magnetic strip. Once the thief has the credit | | | | second part to the ATM skimmer, the camera. In this |
| or debit card data, he or she can place orders over | | | | case, he found it behind a small mirror that alerts the |
| the phone or online. Thieves can also copy the data on | | | | ATM user to beware of "shoulder surfers." He brought |
| blank cards, or "white" cards. White cards are | | | | the camera to the bank manager, who replied by |
| effective at self checkouts, or when the thief knows | | | | saying, "Maybe we should shut that machine down, |
| the clerk and is able to "sweetheart" the transaction. A | | | | huh?" The bank manager contacted bank security, |
| white card can also be pressed with foils to look like a | | | | shut down the machine, and alerted other area banks. |
| legitimate credit card, as seen in this video. | | | | To help combat this type of crime, ADT unveiled the |
| The PCI Security Standards Council provides guidelines | | | | ADT Anti-Skim ATM Security Solution, which helps |
| designed to help merchants securely store and | | | | prevent skimming attempts and detects skimming |
| transmit card account data and prevent it from falling | | | | devices on all major ATM makes and models. ADT's |
| into the hands of criminals. Retailers who fail to comply | | | | anti-skim solution is installed inside an ATM near the |
| with PCI's standards can be fined up to $500,000 by | | | | card reader, making it invisible from the outside. The |
| credit card providers such as Visa and MasterCard. | | | | solution detects the presence of foreign devices |
| PCI recently released a series of recommendations | | | | placed over or near an ATM card entry slot, without |
| for the prevention of skimming scams. "Skimming is | | | | disrupting the customer transaction or operation of |
| becoming a widespread problem. These are guidelines | | | | most ATMs. It can trigger a silent alarm for command |
| for what retailers should be looking at with their reader | | | | center response and coordinate video surveillance of |
| devices", says Bob Russo, general manager of the PCI | | | | all skimming activities. Also, the technology helps |
| SSC. "We discuss different techniques for protecting | | | | prevent card-skimming attempts by interrupting the |
| those point-of-sale devices." | | | | operation of an illegal card reader. This technology |
| The PCI Council's "Skimming Prevention: Best | | | | does not require any software adjustments be made |
| Practices for Merchants" guidelines include a risk | | | | to the ATM itself, and does not connect to or affect |
| assessment questionnaire and self-evaluation forms to | | | | the ATM communications network. Prior to its North |
| gauge susceptibility to these types of attacks and to | | | | American introduction, the ADT Anti-Skim ATM |
| determine where they need to shore up their | | | | Security Solution was successfully field tested on |
| defenses. The guidelines cover how to educate and | | | | dozens of ATMs of four major U.S. financial institutions |
| protect employees who handle the point of sale | | | | in controlled pilot programs. Testing pilots yielded |
| devices from being targeted, as well as ways to | | | | positive results, with no known skimming compromises |
| prevent and deter compromise of those devices. They | | | | occurring. |
| also detail how to identify a rigged reader and what to | | | | You can protect yourself from these types of scams |
| do about it, and how physical location of the devices | | | | by paying attention to your statements and refuting |
| and stores can raise risk. | | | | any unauthorized transactions within 60 days. When |
| Thieves can completely replace a merchant's point of | | | | using an ATM, pay close attention to details, and look |
| sale terminal with a device that is rigged to record or | | | | for anything that seems out of place. If your card gets |
| divert card data wirelessly, or simply store the data | | | | stuck in the machine or you notice anything odd about |
| until the criminal comes back and removes it. (This is | | | | the appearance of the machine, such as wires, double |
| what happened to Stop and Shop.) | | | | sided tape, error messages, a missing security camera, |
| Criminals can also place a device on the face of an | | | | or if the machine seems unusually old and run down, |
| ATM, which appears to be a part of the machine. It's | | | | don't use it. Don't use just any ATM. Instead, look for |
| almost impossible for civilians to know the difference | | | | ATMs in more secure locations. Use strong PINs, with |
| unless they have an eye for security, or the skimmer | | | | both upper and lowercase letters, as well as numbers. |
| is of poor quality. Often, the thieves will hide a small | | | | And invest in identity theft protection. Not all forms of |
| pinhole camera in a brochure holder near the ATM, in | | | | identity theft can be prevented, but identity theft |
| order to extract the victim's pin number. Gas pumps | | | | protection services can dramatically reduce your risk. |