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Frank on Fraud

ATM Compromises And Debit Card Fraud Are Spiking

EMV is almost fully rolled out here in the US but that doesn’t appear to be helping Debit Cards much – at least at ATM machines.

Fico this week reported  Compromises of ATMs and point-of-sale (POS) devices in the US rose 21 percent in the first six months of 2017, compared to the same period in 2016.

This spells bad news for banks as Debit Cards became the primary targets of fraudsters.  FICO reports that due to those ATM compromises, there were close to 40% more debit cards compromised.

The rate of fraud pattern changes has accelerated in the last 24 months, requiring us to continuously adapt our predictive analytics to stay on top of this criminal behavior,” said TJ Horan, vice president, who oversees FICO’s fraud solutions.

To curb the rise in fraud, FICO has built new Artificial Intelligence features into their platform to detect exactly this type of fraud.

7 Ways to Protect Yourself From ATM Fraud

FICO offered 7 ways that you can protect yourself from ATM Fraud.  These are pretty good recommendations

  1. If an ATM looks odd, or your card doesn’t enter the machine smoothly, consider going somewhere else for your cash.
  2. Never approach an ATM if anyone is lingering nearby. Never engage in conversations with others around an ATM. Remain in your automobile until other ATM users have left the ATM.
  3. If your plastic card is captured inside of an ATM, call your card issuer immediately to report it. Sometimes you may think that your card was captured by the ATM when in reality it was later retrieved by a criminal who staged its capture. Either way, you will need to arrange for a replacement card as soon as possible.
  4. Ask your card issuer for a new card number if you suspect that your payment card may have been compromised at a merchant, restaurant or ATM. It’s important to change both your card number and your PIN whenever you experience a potential theft of your personal information.
  5. Check your card transactions frequently, using online banking and your monthly statement.
  6. Ask your card provider if they offer account alert technology that will deliver SMS text communications or emails to you in the event that fraudulent activity is suspected on your payment card.
  7. Update your address and cell phone information for every card you have, so that you can be reached if there is ever a critical situation that requires your immediate attention.

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