The Javelin analysis finds that criminals have long been skimming consumer PINs by stealing ATMs and installing card readers and fake ATMs. They are now also gaining access to consumers’ PINs and accounts by manipulating ATM software, posing as consumers wanting to change their PIN and sending out false mobile text alerts to consumers with requests for their personal information.
The Javelin ATM and PIN Fraud report also found that nearly one in five fraud victims reported having their credit card PIN or debit card ATM PIN information stolen in 2009, which is a considerable increase over 2008. Also, over seven in ten consumers have some level of trust of bank-branded ATMs at branch locations. Bank-branded ATMs in stores or unbranded ATMs garner much lower levels of trust.
Additionally, the research found that more than half of US consumers use an ATM each month; consumers aged 18 to 24 use ATMs more often, sometimes share their PIN and are more trusting of unbranded, non-bank ATMs, making them particularly vulnerable to ATM PIN fraud.
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