ATM Fraud Rising in Prevalence and Sophistication

The report, carried out by Javelin Strategy & Research

, concluded that almost one in five credit or debit card fraud victims reported their PIN information stolen in 2009. In addition to this, it was discovered that 10% of all fraud victims in the USA encountered unauthorized ATM cash withdrawals.

These figures represent a notable increase on those of the previous year, with a 16% rise overall in the number of cases of ATM fraud. The survey interviewed 8,168 consumers throughout the study, acquiring details of their fraudulent experiences.

It is widely believed that the nature of ATM fraud is developing in complexity, with perpetrators targeting the inner software of the ATM's rather than implementing the previously preferred 'Skimming' attacks. The latter comprises of legitimate-looking hardware skimmers being strategically placed on the faade of the ATM; these skimmers then copy the information from the magnetic strip of a credit or debit card.

In addition to this, criminals are becoming even more adept in the acquisition of PIN information via the theft of other private information and the help of a call centre representative. By gaining access to private information, fraudsters are able to contact the victim's bank and use this data to request a PIN change, thus allowing them access to the victim's account. Although it is no longer possible for fraudsters to forge signatures, they have developed ways of accessing account details since the introduction of EMV Chip and PIN software.

To protect consumers from this high-tech fraud threat, the Javelin Strategy & Research team insisted that financial institutions should do more to educate their customers on the risks of ATM fraud, and the steps which can be taken to minimise this risk.

On a more positive note, the research showed that some banks are in the process of installing new ATM software and hardware features aimed at minimising the threat posed by ATM fraud. However, there remains much to do in the education of consumers, as well as re-instilling a sense of confidence within the public. The study revealed that 23% of ATM fraud victims consequently left their financial institution due to a decreased level of trust and satisfaction.

ATM Fraud Rising in Prevalence and Sophistication

By: Harvey McEwan

POST COMMENT

The Power of Words and What To Do About Them Stock Highlight From Pennytobuck.com On Fire, Cy And Spwra, Also Mslp Your Limitless Subconscious Mind Power To Quickly And Easily Solve Any Problem The Life And Death Of James Renwick (1806) By Alexander Shields Steam Shower Generator - The Fundamental Piece Of Your Steam Shower Bangladesh: Justice delayed and denied Stock Update On Ivan, Prot, And Arql From Pennytobuck; Arqule, Ivanhoe, Proteonomix Bangladesh: Justice delayed and denied (Part 2) Live Smart 360 - Smart and Easy Living Mining Stock Updates From Pennytobuck On Thm, Abx, And Sila Run And Test Backups Prior To Your Move - Tip For A Successful Office Move Stock Update On Anv, Tre And Tgmp From Pennytobuck.com Managing Your Retirement Funds Against Depletion