ATMs provide a convenient way for consumers and financial institutions (FI) to conduct transactions. As trends and demands toward self-service functionality continue to increase, ATMs continue to play a very important role. After a dip in 2020, the ATM population grew by about 21,000 terminals between 2021 and 2022. It is now estimated that there are more than 520,000 active ATMs across the US (1).
ATMs have proven to be a popular and crucial way for consumers to engage with their financial institution; however, with this increase in use, ATM crime and vandalization are on the rise, too. According to ATMIA (ATM Industry Association), from 2019 to 2022, there was an increase of 600% in ATM crime incidents, with a 165% increase from 2021 to 2022 (2). With an average of $27,000 cash stolen and upwards of $50,000 in costs cost to replace the ATM, these attacks are costly and intrusive.
Another report shared by the FBI in its 2021 Bank Crime Statistics analysis shows 254 ATM thefts, up from 229 in 2020. Before then, the number of ATM thefts was only a fraction of that, with only 31 in 2019, 74 in 2018, 50 in 2017, and 45 in 2016 (3).
Common Threats
There are various ways criminals cash in from ATMs. The top three are skimming, jackpotting, and hook-and-chain attacks.
Skimming: This activity increased by 109% from 2022 to 2023 (4). It involves rigging a machine with hidden recording devices and cameras to capture card holder data and PINs.
Jackpotting: This fraudulent act was first seen in the US around 2018 (5). In it, cybercriminals gain physical access to the ATM using malware, which can then dispense cash until the ATM is empty.
Hook and Chain Attacks: This ATM attack typically happens between 11 pm and 6 am when fewer people are around. It involves attaching a chain to the ATM and a large vehicle and forcefully trying to open the ATM vault doors to gain access to the cash. Though the criminals often fail to access the cash, the machine damage can be costly and often involves a full machine replacement, at a cost of $45,000 (4) or more.
As a financial institution, security and safety are always top priorities; therefore, it’s critical to take elevated measures to try and protect against these types of attacks. These include installing physical security gates/barriers, installing security software to protect against malware attacks, making sure ATM equipment meets current manufacturer security standards, and installing anti-skimming card readers.
Contact us to learn how we can provide top-of-the-line security measures to your fleet.
References:
- https://www.atmia.com/news/atm-population-in-the-us-shows-strong-growth-over-the-past-year/20388/
- https://www.atmia.com/news/industry-concern-over-atm-crime-is-peaking/20690/
- https://www.claimsjournal.com/news/national/2022/08/09/312021.htm
- https://www.atmsecurityassociation.com/whitepapers/
- https://krebsonsecurity.com/2018/01/first-jackpotting-attacks-hit-u-s-atms/