Saturday, September 1, 2018

ATM Cash Heists on the Rise

Days after the Feds warned about an ATM cash heist, hackers siphoned $13m from India-based Cosmos Bank – using cloned versions of the bank’s debit cards. Fraudulent debit cards are at the center of many ATM heists. Cybercriminals create fraudulent copies of legitimate cards by imprinting the data on magnetic strip cards, such as gift cards from retail stores. At a pre-determined time, the co-conspirators withdraw account funds from ATMs.
The market for cloned ATM cards is on the rise. Multiple outlets are offering details for bank accounts located in the U.S., U.K. and Europe with balances ranging from $3,000 to $50,000. Prices for these cloned cards begin at $200 on average. A criminal can spend $750 and get the ATM card for an account with $50,000.
The FBI alert was accurate. Crooks used an interloping proxy switch to approve debit card requests within the core banking system. Then, using 450 fake international Visa debit cards, 12,000 transactions took place in two hours and 13 minutes from ATMs and other locations across 21 countries on Saturday alone. Aging infrastructure and operating systems lie at the heart of most ATM theft – as does lax physical security.