In the past, the skimming equipment was clunky and easier to detect, but as technology progresses, the card-readers are now more sophisticated and harder to differentiate from authentic ATM card-readers. Combine these authentic looking devices with Bluetooth technology and stealing data is quick and easy for the scammers. If you do get scammed look at its affects by calculating your debt ratio
Scammers also are getting savvy in the way they are installing the skimmers on Saturdays and removing them before the bank reopens Monday morning. By the time people notice something amiss when information is updated, the stolen data has already long been transferred to another country (Wall Street Journal).
An evolving type of fraud
Skimming is not a new technique, but with the precise and improved progression of technology, thieves are exploiting technology in order to design clever ways to, well, rob a bank. Additionally, the days of a one-man thieving operation are over, today's ATM fraudsters have evolved into huge operations which are run by organized gangs.
In years past, many of the ATM scams were executed at independent ATM kiosks or at retail points of sale, however more thieves are currently going right to the bank and using these ATM machines as a target. In 2009, an increased trend of targeted bank-owned ATM machines was observed. Also in 2009 the "U.S. Secret Service estimated ATM skimming theft was about $1 billion a year, or $350,00 a day," reported ABC News; this is not small potatoes.
More recently, scammers are getting even more bold, even creating total fake ATMs and fitting them over the legitimate machine, as evidenced by an incident in Sweden that occurred as 2013 came to a close.
Vigilance is needed these days.
The facts that the thieves are targeting banks is a huge concern. Individuals tend to feel more comfortable and secure when they go directly to the bank rather than use a third party ATM machine. Not to mention successful skims at banks can significantly increase theft statistics as banks typically see over 1,500 transactions per day, whereas independent machines see perhaps 200 or less.
If statistics on ATM skimming continue to rise, coupled with the more difficulty in detecting tampered machines, this is likely eventually going to lead to a requirement of better use of security technology on the banks and retailers end. It will become too costly not to invest in stronger technologies. Currently, banks are already challenged as Microsoft has decided to pull the plug on its Windows XP operation system. The majority of banks in both the United States and globally use ATMs that run XP, so this presents a large dilemma for banks.
In order to protect themselves, consumers would be smart to educate themselves on what to look for in order to avoid becoming a victim of ATM skimming fraud. Krebs on Security has some good information in regard to skimmers. Education, coupled with preventative practices, can help consumers protect their bank information.
