New report on ATM fraud statistics. (Source: Shutterstock)
Most ATM operators say they're experiencing more ATM attacks and fraud in the last 12 months, but opinions about how to fight back appear mixed, according to new data from the ATM Industry Association (ATMIA).
The trade group's survey found that 58% of respondents said physical ATM security breaches and ATM fraud incidents increased over the last year, and 59% said fraud attacks in particular have increased. In 2016, those numbers were just 42% and 43%, respectively.
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ATM Theft Battles Continue
More than two-thirds (67.35%) of the respondents in the ATMIA survey said that in the last 12 months they experienced ATM thefts using vehicles, and over half (57%) experienced ATM theft via other means. About half or more of the respondents said these types of thefts remained constant or increased over the year.
"For those with experience of safe breaking, the most common attack method reported was the use of explosives," ATMIA added. "Both explosive gas mixtures and solid explosives were reported by 19.47% of respondents (23.48% in 2017); 54.05% of respondents indicated that explosive gas was used, compared to 45.95% reporting solid explosives. This compares to the 2017 survey, where 51.85% indicated explosive gas and 48.15% indicated solid explosives."
ATM Fraud on the Rise
The study also found that 86% of respondents experienced ATM data fraud in the last 12 months, 96% experienced physical fraud and 79% experienced cyber fraud.
"For those with experience of ATM fraud attacks, the most common type of ATM fraud was skimming at the ATM. This is consistent with the 2017 survey," ATMIA reported. "After skimming at the ATM, PIN compromise, transaction reversal fraud, cash trapping, ATM malware for card data, eavesdropping, card trapping, jackpotting the dispenser and money laundering rank among the most common types of fraud attack."
Almost all respondents (91%) said skimming devices were getting smaller.
Fighting Back
"The majority of respondents, 57.14% (50% in 2017, 44.68% in 2016), reported that over three-quarters of ATMs have physical security countermeasures deployed," ATMIA noted. About 39% of the respondents said that at least three-quarters of their fleets had deployed anti-fraud countermeasures.
Most said the physical countermeasures were at least moderately effective, but about one in 15 (6.12%) said they were ineffective. About 15% said their anti-fraud countermeasures were ineffective.
Nonetheless, about 60% of the respondents said they planned to invest more in security countermeasures over the next 12 months. The other 40% said they planned to either make no changes or spend less on security countermeasures.
"Most respondents, 69.39%, indicated no plans to deploy biometrics at ATMs (74.36% in 2017); 22.45% reported plans to do so in the future (12.82% in 2017), and 8.16% currently do have biometrics deployed on ATMs (12.82% in 2017)," ATMIA noted.
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