Victims Lose $500K to ATM Skimmers

In an earlier MySecurityIQ post, we talked about the risks of using public ATM machines or other devices that read cards. A recent incident at a New York bank highlights the importance of being aware when you use public ATM machines.

Thieves in Staten Island installed devices on ATMs at several branches of Sovereign Bank that allowed them to harvest account access information. The data were used to steal a total of more than US $500,000 from the accounts of 250 victims. The group used skimmers to gather data from ATM cards and cameras to discover customer's PINs. The information was then used to manufacture phone ATM cards.

See the Related Tip: Watch out for ATM Onlookers

Watch for ATM Onlookers

Part of protecting your personal information is to always be alert of your physical surroundings. In many cases, a criminal will use a combination of techniques to steal information. One of the most common methods is called "surveillance" - which is a fancy term for watching. Just like in the spy movies, criminals will often spend time watching a person or place to determine patterns that may give them an advantage.

One common and simple way to steal personal information, such as a PIN number, is to watch people type their password on a keypad. Since for ATM machines the PIN is often only 4 digits, these can be very easy to remember. While there are many sophisticated methods, such as "keystroke loggers" (which monitor your typing) or video cameras, in many real-world cases people are able to steal passwords or PINS simply by watching.

ATM machines are perfect for this crime since it is common for people to be standing in line waiting to use the machine. Some people stand uncomfortably close during these transactions.

Security Tip: Whenever you are using your ATM, or any other keypad where you type in your personal PIN, make sure nobody is watching. If they are watching, more your body in front of their line of site or simply abandon the transaction and return later.

You can use this tip whenever you type any personal login or password information into any keypad that is in view of others.

Fake ATM Readers Steal Your Bank Card and PIN

In the category of "what will they think of next" - a new scam to steal your bank card and PIN number is hitting a lot of people.

Teams of organized criminals are installing equipment on legitimate bank ATMs to steal both the ATM card number and the PIN. The team sits nearby in a car receiving the information transmitted wirelessly over weekends and evenings from equipment they install on the front of the ATM. The University of Texas Police has an excellent set of pictures to help to recognize these convertee ATMs. Reports are that these false fronts are also being used at gas stations and other outlets. So what can you do to help spot these fake ATM machines?

ATM Security Tips: First, be extra careful using ATM machines that are in poorly secured areas, such as gas stations or grocery stores. Thieves are likely to target these locations because there is much less change of being detected.

Second, examine the ATM machine a look for any suspicious-looking attachments, including the location of mini-cameras on nearby walls or envelope holders (see the pictures).

Finally, always be aware of suspicious-looking vehicles parked nearby, probably in dark or poorly lit areas. In this scam, the perps need to be nearby to receive the data via a wireless link.

According to police, if you see an attachment like this, do not use the ATM and report it immediately to the bank using the 800 number or phone on the front of the ATM.

Related Tips: Watch out for ATM Onlookers