Alert: Even Chip-Based Cards Can’t Protect You From This New ATM Scam

For years hackers have found ways to infiltrate and steal money from ATMs, but the latest tact is so dangerous that even the Secret Service has issued a warning about it.

Periscope skimmer devices, which can probe the magnetic stripe on a card as the machine reads it, were recently discovered connected to the internal circuit board of ATMs in Connecticut and Pennsylvania. These ATMs were most likely targeted because they were "open-top" which allowed the criminals to use a key to gain access to their inner workings.

Each device had a battery that could last up to 14 days per charge and enough storage capacity for 32,000 card numbers. On the positive side, the periscope apparently did not collect PIN numbers. Instead, it is thought that this scam may be part of a larger heist in the works.

Though the skimmers used recently may not be PIN collection devices, it’s still a good habit to cover the PIN pad with your free hand while you plug in your code at an ATM. You never know who could be watching. Scammers may have hidden cameras on the device to steal information, or they may have hacked into a native camera remotely to spy on you while you input your credentials. Even if you don’t suspect that you’re being watched, it’s always better to err on the side of caution.

Not even those chip cards that your bank replaced your old cards with are of much use in many cases, as most ATMs still need magnetic strips to accept and process the card as legitimate.

Unlike the older skimmers which were often attached to the outside of an ATM, this new skimmer can’t usually be identified by sight as it's installed internally to fool even cautious users.

The most practical advice for avoiding ATM scams is to consider the thought process of a criminal who may try to exploit one of these machines. Consider the ATM's location first. If it is surrounded by people at all times, like ATMs in supermarkets or public places, chances are it won’t become a target. On the other hand, if the ATM is in a secluded rural gas station tucked away in the back hallway, it’s more likely that someone would tamper with it. Also, consider if it looks like it could be opened with a key by a criminal seeking to access its innards.

Consider using only ATMs that are placed in high-traffic areas where there are plenty of witnesses to notice someone tampering with the machine. It’s also important to avoid ATMs that look like they could be easily opened; rather, use one that is embedded into the wall, like the one in your bank’s drive-thru. These are great for several reasons: 1) They’re well-lit, 2) They are high-surveillance zones, and 3) Hackers have a hard time getting into them.

If you’re dealing with your agency’s finances, it’s common these days to conduct business online (and not an ATM), which means you need to ensure your information is safeguarded. If you aren't sure whether your agency is doing all it can to protect its data, SMART Services can help you find the best solution. To learn more about our cybersecurity services, give us a call at 586 258-0650 .

Let Smart Services position your agency for tomorrow’s technological challenges. For 25 years, Smart Services has helped agencies across the U.S. face a changing environment by providing innovative technology solutions that allow agencies to focus on growing their business. MyAGENCYcloud, our complete cloud solution, covers all your technology needs in the cloud or at your agency. In today’s competitive environment, it’s time to make your agency technology a strategic asset, instead of a liability. Let us show you how. To learn more, please call our expert agency technology advisor at 586-258-0650.