ATM fraud up by a third – European ATM Security Team

Fraud attacks on ATMs have risen by nearly a third in Europe, according to a report by the European ATM Security Team (EAST).

Fraud attacks on ATMs have risen by nearly a third in Europe, according to a report by the European ATM Security Team (EAST).

In spite of a 9% drop in card skimming incidents, ATM related fraud rose by 32% in the first half of this year. Physical attacks on ATMs increased 4%, driven by a massive rise in attacks involving explosives.

These attacks went up by 74%, from 194 in the first half of 2012 to 337 in the first half of 2013.

EAST Director and Coordinator Lachlan Gunn said, "This rise in solid explosive and explosive gas attacks is of great concern to the industry. In addition to cash losses collateral damage can be significant, as can the risks to industry staff and other parties."

Total reported losses from physical attacks on ATM went up by over 25%, to €10m ($13m). Each physical attack on an ATM costs €10,000 on average.

An increase in cash trapping and transaction reversal style attacks are thought to be behind the overall increase in ATM related fraud. 8,000 of these incidents were reported in the first half of this year, up 77% from the 4,500 incidents reported in the first half of 2012.

Despite the rise in attacks on ATMs, overall fraud losses are down to €124m, a 5% drop on last year’s €131m.

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