Wednesday, May 20, 2015

Debit-card data thefts at all kinds of ATMs soar. Thieves are stealing information to make counterfeit plastic.

 
Getty Images
A customer uses a Bank of America ATM.
MAY 20, 2015

Criminals are stealing card data from U.S. automated teller machines at the highest rate in two decades, preying on ATMs while merchants crack down on fraud at the checkout counter.

The incidents, in which thieves steal information from debit cards to make counterfeit plastic, are taking place at ATMs that are owned by banks as well as independently owned cash kiosks in shopping centers, convenience stores and restaurants, according to industry executives.

From January to April 9, 2015, the number of attacks on debit cards used at ATMs reached the highest level for that period in at least 20 years, according to FICO, a credit-scoring and analytics firm. The company tracks such incidents through its card- monitoring service for financial institutions that represent more than 65% of all U.S. debit cards.


Debit-card compromises at ATMs located on bank property jumped 174% from Jan. 1 to April 9, compared with the same period last year, while successful attacks at nonbank machines soared by 317%, according to FICO.

“These tremendous spikes in fraud are unprecedented,” said John Buzzard, who manages FICO’s card-alert service.

Source: wsj.com