[ISN] ATM Fraud: Skimming is #1 Threat

From: InfoSec News <alerts_at_private>
Date: Mon, 1 Nov 2010 23:02:38 -0600 (CST)

By Linda McGlasson
Managing Editor
Bank Info Security
November 1, 2010 

Will 2011 be "The Year of the Skimmer?"

After an uptick in skimming incidents already in 2010, security experts 
say that we will see even more skimming in the United States in the 
months ahead, particularly against ATMs. Lingering magnetic-stripe 
technology, rather than EMV chip standard used in Europe and elsewhere, 
is to blame, experts say.

While the average ATM skimming attack spans a timeframe of between one 
and two hours, losses per incident average $30,000, according to ADT 
Security Solutions, which provides anti-skimming solutions for the 
financial industry. ADT also estimates that ATM skimming attacks cost 
financial institutions and their customers 10 times more than losses 
suffered during robberies. According to ACI Worldwide's Card Fraud 
Guide, overall card fraud continues to escalate. ACI's report shows U.S. 
credit and debit card losses continue to increase. In 2004, credit card 
losses accounted for $1.8 billion and rose to $2.04 billion in 2007. 
Debit card losses accounted for $810 million in 2004 and rose to $1.05 
billion in 2007.

Tom Wills, a fraud analyst at Javelin Strategy & Research, says 
criminals responsible for the skimming at ATMs and POS devices have been 
caught this year, but their arrests are no deterrent. "2010 has been a 
good year for law enforcement," he says. "But as long as there are 
vulnerable devices out there, the bad guys will continue to target and 
attack them."


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Received on Mon Nov 01 2010 - 22:02:38 PDT

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