ATM Security: Customers and Machines are at Risk

In light of today’s emerging technologies and the rapid acceleration of digital banking and payment channels, some predict that digital tools will eventually render ATMs obsolete. However, ATMs are not going away but rather they are evolving with the times. New self-service banking technologies have joined the ATM ranks, with acronyms coined by the industry to describe them, such as ITMs, (interactive teller machines), VTM (video teller machines), PTM (personal teller machine), and IBK (interactive branch kiosk). These standalone bank branches play a vital role during national disasters and other crisis by helping banks expand their customers’ access to basic banking needs. When the U.S. (and the world) was shutting down during the global pandemic and branches were forced to shutter their doors, many banks actually increased their number of ATMs. In fact, an ATM Software Trends Report found that 43% of banks increased the number of ATMs they deployed during 2021, citing customers’ need to access cash, regardless of whether their branch was open or closed. ATMs also play a critical role in financial inclusion. Today’s ATMs can offer a full branch experience. Unfortunately, the very benefits they offer are what also makes them a prime target for criminals. When ATM customers are standing in line at your local bank or credit union, waiting to withdraw some cash from the trusty ATM, they (most of them) are unaware that there are potential risks lurking! That's right – both customers and machines are targets for criminals looking to exploit weaknesses in ATM security. With the exponential rise in ATM crimes, the need for ATM security strategies is more essential than ever. The FBI reported 254 thefts in 2021, up from 229 in 2020 and only 31 in 2019. Hook and chain attacks have become one of the most popular methods of physical attacks against ATMs. At a recent ATMIA conference, the folks at 3SI Security reported a growing trend of criminals attacking ATM service technicians. 3SI’s VP of global marketing and produce management, Mary Pifer, said “Sometimes they will create service issues so that the technician will come there.” Pifer pointed out that the thieves are “taking the path of least resistance,” since most of the ATM’s protective elements are disarmed while the service person is working on it. The criminals may even observe and follow service techs for a month or so to track their behavior and identify weaknesses before they attack, said 3SI. Some ways that banks can mitigate these attacks include not hiding the ATM with landscaping and using GPS sensors to know when an ATM is moved by criminals. 3SI highlighted the success of these GPS trackers when criminals stole $400,000 in cassettes in Garland, TX. When police received a notification of the event, they were able to track the cassettes and recover most of the money. Thompson Consulting Group, LLC • P.O. Box 5303 • Oswego, New York 13126-5303 • (315) 342.5931 • [email protected] • www.tgrouponline.com In December, we reported about a spike in what authorities call “jugging” thefts, wherein bad actors follow victims from an ATM, bank, or store to their homes to rob them or commit other violent acts. Juggers usually wait in parking lots and watch for people – primarily older customers over 65 – to withdraw large sums of money from ATMs. In some cases, they attack while the person is juggling their car keys or smartphones in parking lots, or they follow the customers to their homes. Bank customers in affluent urban areas of Texas, California, and Florida have been targeted. In Houston recently a man followed a Bank of America customer who had just withdrawn a large amount of cash. The Houston Police Department reported more than 735 documented cases of jugging by December 2022 (up from 720 cases in 2021). There were a reported 129 cases of these attacks in Austin last year. In response to increasing crime and vagrancy targeting ATMs, JPMorgan Chase Bank announced earlier this year that the bank was closing some of their ATM vestibules in New York that were previously available to customer 24/7 at 5 p.m. or 6 p.m. to align with their branch hours. These threats aren’t just happening here in the U.S. The problem is global. In Nigeria, the Nigerian Police Force announced that they will prosecute protesters who attack or vandalize ATMs. In February, the Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI) went so far as to say that it will direct its members not to work in states where customers are attacking bank branches if the current attacks on banks persist. Criminals target victims who are most vulnerable, focusing on the unaware or unprepared. They choose a location based on environmental conditions that enhance the opportunity to successfully complete their crime. There are steps you can take to help ensure the safety of your bank’s ATMs, customers, and staff:  Install adequate and effective security cameras on both sides of an ATM, pointing toward the cash dispenser, and at customers entering or exiting the machine.  Have more than adequate lighting at and around ATMs and ATM vestibules. The brighter, the better!  Make sure that your staff is trained in how to recognize suspicious activity. They should be able to identify people who may be casing the ATM or trying to obtain information about it. Include training on what types of vehicles or packages might be suspicious. The ATM is far from becoming a relic of a bygone era. Because of the variety of ATMs, the unique characteristics of each installation, and crime considerations at each location, there is no silver bullet to guarantee the security of ATM customers. When it comes to ATM security, prevention is key. Banks and credit unions must take proactive measures to ensure the physical safety of their ATMs and protect customers from potential risks. By implementing robust physical security measures and staying updated on the latest trends, banks can mitigate risks and ensure a secure banking experience.