ATM Skimming: 8 Tips to Fight Fraud

Despite the recent bust of an alleged skimming ring, ATM fraud is on the rise and shows no sign of abating. But one industry expert has a list of incident response tips for financial institutions that want to fight back against ATM skimming attacks. Mike Urban, Senior Director of Fraud Solutions at FICO (Fair Isaac Corporation, the provider of credit scoring), says all types of ATMs - and even pay-at-the-pump gasoline stations - are under attack by tech-savvy fraudsters. Here are 8 Incident Response Tips to fight fraud. Action items for banking institutions include:

1. Have a Plan -- for what you do if you find a skimming device on one of your ATMs.
2. Document the Plan -- listing everything that should happen, people to be contacted, actions to be taken.
3. Educate Your Branch Employees -- If a device is found, all employees should know what and what not to do. Educate branch employees and third-party vendors, as well as ATM servicers. Make sure they are monitoring the outside of the ATMs for residue or devices that actually are on the ATM.
4. Inspect All Locations - frequently, checking the facia and surroundings around the ATMs, making sure nothing has been added or moved.
5. Set ATM Standards - including visual standards for all ATMs in all branches. Keep it standard. Take a photograph of each ATM, inside and outside. Show employees what it should look like, so ATMs can be quickly examined to see what may be out of place. "It sounds like a bit of overkill, but a picture is worth a 1000 words," says Urban.
6. Don't Touch Skimmer If Found -- Contact law enforcement if a device is found on the ATM. Tell employees to not touch it or pick it up or pull it off the ATM. Secure the area with bank robbery tape until law enforcement arrives.
7. Be Vigilant At All Times -- Increase your checks on ATMs, especially if you've heard of ATM skimming in your area. If there are reports of ATM skimming, increase the number of checks. Even if there are no reports, have employees check ATMs in off-hours and over weekends, which are prime times for skimmers to be put on ATMs.
8. Contact Other Institutions -- Share information with local and regional institutions about what's happening at your branches and make sure they share information with your institution.

Posted in: Debit Card Fraud