According to a study conducted by FICO 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.
Debit-card compromises at ATMs located on bank property jumped 174% from January 1 to April 9, compared with the same period in 2014, while successful attacks at nonbank machines soared by 317%.
Many of the ATM incidents involve a long-established technique in which criminals install devices that capture information from the card’s magnetic stripe. The method, called skimming, sometimes also involves a tiny camera that records the cardholder entering a personal identification number.
Criminals use the information to manufacture counterfeit debit cards that can be used to withdraw cash at an ATM or make a purchase in a store or online. The trend is particularly troublesome because thieves can drain a bank account when they have access to cardholder information.
A study released in 2014 by the Federal Reserve found that US consumers made 5.8 billion ATM withdrawals in 2012, totaling USD 687 billion.
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