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Time Magazine Focuses on ATM Skimming

By John Pearce, on January 19, 2011

ATM skimming costs American financial institutions about $1 billion annually.  It’s a worldwide problem, but the U.S. is particularly vulnerable due to the magnetic stripe on the back of ATM/debit cards that stores personal financial information.ATM Skimming Detection Device

Skimmers attach well-disguised devices to an ATM that allows them to read that information and wirelessly send it to a laptop computer.  Many European countries are converting from the mag stripe to embedded microchips that are not as easy to skim.  But the time and cost of converting millions of ATM cards has stalled any such change in this country.

Time magazine recently took a look at the problems caused by skimming.  The article included information from John Pearce, ADT’s commercial marketing director, about a technology the company offers that can detect a skimming device, disrupt the transmission of information to a data thief and alert bank security to the situation.

“We’ve installed this on over 1,000 ATMs for a major national bank,” Pearce said.

There’s still a long way to go to protect the roughly 400,000 ATMs in the U.S., but until the card technology is changed, the ADT technology offers the best solution for slowing this costly crime.

Posted on: Banking & Financial - Tagged as: , ,

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  1. Fake documents have made signature system unreliable because in the event of crime signature does not even expose person’s gender. To make signature system reliable we have option to apply ID sticker (small sticker with image of person’s face printed on it) and countersign. Why would anyone get tempted to do identity fraud when image of face is retained on the document?

    Skimmers, pin-hole cameras, micro sensors on key pads etc. have made PIN system unreliable. To make PIN reliable banks have option to provide ID KEY (small memory stick) with new security code personalised to individual card needed to activate card transaction at ATM and retail outlet stored on it. Why would anyone get tempted to do card fraud when they would not have new security code which will change to new value after every transaction?

    Unless banks make both signature and PIN systems reliable, it is virtually impossible for them to deter fraud boom which will be far worse than credit crunch.

    Comment by Roger — January 20, 2011 @ 10:39 am

  2. [...] Skimming Podcast By ADT Security Services, on March 2nd, 2011 Losses from ATM skimming continue to grow each year, now reaching more than $1 billion, according to the U.S. Secret [...]

    Pingback by ATM Skimming Podcast « ADT Commercial Security — March 2, 2011 @ 7:49 pm

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