ATM Skimming happens when thieves attach devices onto ATMs in order to copy a credit-or-debit-card number, the information on the magnetic strip and even your personal identification number.
A fraudster can benefit from ATM Skimming by creating a cloned card that can be used in an ATM or at a POS terminal. For using in the POS Terminal, only the magnetic strip info is required, whereas for using in an ATM, the fraudster will need the PIN also.
Thus there are two critical components involved in ATM Skimming : a device on the card-reader slot to obtain the magnetic strip information from the card; and either a camera or a pin-pad device on the existing pin-pad to obtain the PIN.
Measures recommended to be taken by Banks:
Video Surveillance – Invaluable and effective in monitoring, post-complaint investigation. Also acts as a deterrent of impulsive offenders.
Service Technicians / CIT Agents Regular Review – to include a checklist for evaluation of key ATM components and surroundings during every visit – also check for presence of adhesive tape residue near or on the card reader.
SMS Alerts for every debit transaction using the debit-or-credit-card – with a robust emergency deactivation procedure.
Consumer awareness – to make the customer more attentive and also to look for any irregular or attached devices; facility to easily report suspicions to the Bank.
Provide a Guide to the consumer for checking for any aberration – Have a picture of the ATM “as it should be” either pasted near the ATM, or can even be displayed on the ATM Screen home page, so that the customer can check for the presence of any suspicious tampering.
Technology Solutions:
Chip Cards
The most effective method of preventing sensitive account information from being available on the magnetic strip is the use of chip-based cards that house the data on microchips instead of magnetic stripes, making data more difficult to steal and cards more difficult to reproduce.
Biometric ATMs
Biometrics offers a difficult to duplicate replacement to a static numerical PIN. As each fingerprint or retinal scan is unique, it is clearly more robust than a four digit PIN. However, as it may be a costly enterprise, deployment of biometrics as a means to move away from the customer PIN may not happen unless there is a push by the statutory body towards this.
2 Factor Authentication for ATM & POS Use
Solutions are available whereby for the use of debit-cum-credit cards either on ATMs or on POS, a OTP (as is vogue for online transactions now) will be generated and communicated to the registered mobile phone of the user. Implementing this will ensure that skimmed cards cannot be used without having access to the registered mobile phone of the customer.
Jitter Technology
Jitter technology is a process that controls and varies the speed of movement of a card as it is inserted through a card reader, making it difficult to read card data, as card skimmers generally require a smooth intake of the card to get a good read of the magnetic strip. However, jitter works on ATMs with motorized card readers only – ones in which the user inserts the card and then allows the reader to pull the card in, read the mag-stripe data and then push the card out. It is not effective on machines with dip readers where the user manually inserts and withdraws the card.
Radio Frequency Jamming
One of the key factors for a successful ATM Skimming fraud is to communicate the captured magnetic strip data and the PIN data to the fraudster for use. Nowadays, this is transmitted using radio frequency or through Bluetooth wireless technology. By installing a radio frequency jammer in the ATM Kiosk, this can be prevented, making it necessary for the fraudster to physically visit the ATM Kiosk to retrieve the information – thus making it more risky for him.
Anti Skimming Devices
There are a few commercial anti-skimming devices available in the market. Most of them monitor for the presence of foreign objects near or on the card reader and either disables the ATM when such a device is detected, or generates an alert to the Switch. Some products also emit an electromagnetic field which interfere’s with a skimmer’s ability to capture magnetic stripe data.
Customer Point of View – Precautions to be Taken
Here are some tips to keep in mind next time you go to withdraw cash:
Trust your instincts. If something doesn’t look right or feel right, move on to the next ATM. A lot of skimming devices are stuck onto the machine or nearby with Velcro or two-sided tape. Keypads that aren’t concave, for example, could have overlays that flatten or pull the surface of the keys out. A card-reader slot might have a perfectly molded attachment over it that pops off. Some skimmers are custom-made with matching molding and a color that corresponds to a targeted ATM. If anything on the front of the machine looks crooked, loose or damaged, it could be a sign that someone has attached a skimming device or a camera.
As you key in your PIN, cover the keyboard with the other hand to block anyone or a camera from seeing.
Don’t use ATMs with unusual signage or instructions, such as a command to enter your PIN twice to complete a transaction.