The European ATM Security Team (EAST) published its third European Fraud Update for 2014.

This new report is based on country crime updates given by representatives of 17 countries in the Single Euro Payments Area (SEPA), and 2 non-SEPA countries. The following countries supplied full or partial information for this Update: Austria, Czech Republic, Finland, France, Germany, Hungary, Ireland, Italy, Liechtenstein, the Netherlands, Norway, Portugal, Romania, Russia, Spain, Sweden, Switzerland, the United Kingdom and Ukraine.

Card skimming at ATMs was reported by sixteen countries, with increases reported by two countries and decreases by seven countries. One country reported the reappearance of skimmers at ATMs with DIP card readers and two countries reported card data compromise through wire-tapping or ‘Eavesdropping’. The use of side bars to conceal cameras for PIN compromise appears to be becoming more prevalent.

European fraud counter-measures such as Geo-blocking, fraud monitoring capabilities and fraud detection continue to improve and most ATM related card skimming losses occur outside Europe and are migrating away from EMV* Chip liability shift areas. In 2014 such losses have been reported in 46 countries and territories outside of the Single Euro Payments Area (SEPA) and in 7 within SEPA. The USA remains thetop location for such losses, followed by Indonesia and Thailand.

Cash trapping incidents appear to be on the increase and were reported by fourteen countries. One country reported the emergence of a new type – trapping cash deposited at ATMs with a banknote recycling function. Five countries reported transaction reversal fraud (TRF) incidents and card trapping incidents were also reported by five countries.

ATM malware incidents were reported by three countries. These were related to ‘cash out’ or ‘jackpotting’ and in two of the countries the malware was recognised as the Backdoor.Padpin Trojan. On 16th July 2014 an international organised cybercrime network was successfully taken down in Romania and France with the support of EC3 at Europol. The network was suspected of electronic payment crimes including intrusions into international non-cash payment systems (through malware attacks), illegal worldwide financial transactions and money transfers, card data compromising (via skimming attacks), money laundering and
drug trafficking.

Ram raids and ATM burglary were reported by eight countries, with one of them reporting increases in this type of attack. Eight countries reported explosive gas attacks and one of them also reported attacks on ATMs using solid explosives. Criminal groups are sharing information across borders and are exploiting the opportunities created by national borders.

Founded in February 2004, EAST is a ‘non-profit’ organisation whose National Members are committed to gathering information from, and disseminating EAST reports to ATM deployers and networks within their countries/regions. While the main focus of EAST is on ATMs, the group also focuses on all payment terminals that have a direct impact on crime perpetrated at ATM locations.

EAST National Members represent 29 countries with a total deployment of 639,379 ATMs.

The EAST Expert Group on ATM Fraud (EGAF), formed in May 2013, provides a European specialist expert forum for discussion of ATM related fraud trends, fraud methodologies and counter-measures, and for the provision of regularly updated lists of known devices used for card or PIN or data compromise, for cash trapping, and for lists of known counter-measures. Through a system of ATM Fraud Alerts EAST is able to communicate important and timely information to its National and Associate Members.

The EAST Expert Group on ATM Physical Attacks (EGAP), formed in May 2014, provides a European specialist expert forum for discussion of ATM related physical attack trends, attack methodologies and counter-measures.