Latest Scam:

The FBI and police across the country are seeing cases of people having their entire bank accounts drained in ATM scams. The criminals will attach a face plate onto an existing ATM machine over the slot that you would swipe your card through. The face plate will record your account and pin number, and the scammers will just have to retrieve that information later.

In another version, the face plate covers the entire screen of the ATM. They will sometimes even create a sign that says that "We are testing out a new system, so your screen options may have changed" so that you are not quite as alarmed when the machine does not work like it should. When you enter your PIN number, the ATM will appear to reject and "eat" your card. The scammers will later come and retrieve both your card, and the PIN number you entered on their fake touch screen.

How to Protect Yourself
? If you notice that the ATM machine looks different than the last time you were at it, do not use it
? Run your finger along the card slot before you swipe the card. If you feel little prongs. which is how the scammers get the card back out, then do not use that ATM
? Use the ATM machines in bank lobbies. These are less likely to be targeted by scammers

For all of you who use ATM cards.
Just wanted to warn you about something that happened to me the other day. I was getting some cash out at the cash point outside at HSBC George Street. I put my card in and a message came up on the screen saying the machine was temporarily out of order. A lady approached me and told me that this had happened to her the other day and what I needed to do was key my pin number in and then press cancel twice. I did this and of course no card was returned. I left the machine thinking that it had swallowed my card. But when I returned to HSBC the following morning, my card wasn't there. According to the police this method of stealing bankcards is called the Lebanese loop'. A plastic envelope is made up that fits the hole in the machine perfectly. When you put your card in, the machine knows it is there but cannot read it and therefore the message comes up on the screen. Once the pin number has been given away and the card left in the machine, it is then 'looped' out and the spending starts! I had 500 taken from my account before I realized what had happened and cancelled it. The woman who approached me at the cash point was late 40's in age, 5.3 in height, dark hair and eyes. The way she was dressed was smart as if she had just left work. Please pass this information on to all your friends.

Subject: ATM Scam
For your information, please be advised of the following ATM scam:

Beware the next time you use an ATM. Criminals are inventing ever more ingenious methods of relieving you of your cash.

The latest scam involves thieves putting a thin, clear, rigid plastic 'sleeve' into the ATM card slot. When you insert your card, the machine can't read the strip, so it keeps asking you to re-enter your PIN number. Meanwhile, someone behind you watches as you tap in your number. Eventually you give up, thinking the machine has swallowed your card and you walk away. The thieves then remove the plastic sleeve complete with card, and empty your account.

The way to avoid this is to run your finger along the card slot before you put your card in. The sleeve has a couple of tiny prongs that the thieves need to get the sleeve out of the slot, and you'll be able to feel them.

The police would like as many people as possible to be aware of this scam, so pass this on to your friends.

David Wadsworth dwadsw@etna.demon.co.uk
Tue, 8 Jun 1999 17:21:49 +0100

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There were reports on this in the papers last week (I believe it was
somewhere in the Times). It was what I like to call the 'Machine in the
Middle' attack. A false front was installed over the front of the ATM,
which intercepted and recorded the card details and the PIN numbers via
a superimposed keyboard and magnetic card reader. The thieves chose
Supermarket locations, and the Bank Holiday, when people were in a
hurry, and weren't likely to ask questions about why the ATM had changed
its external appearance. Also being a Bank holiday, large amounts of
cash could then be withdrawn without arousing suspicion, and without the
victims noticing the transactions until it was too late.

I can think of a few ways to defeat this attack, but they cost money, so
they probably won't be implemented. The ATM could be modified to detect
any overlay, using one or more photo cells or capacitive detectors. It
might also be possible to project an external magnetic field around the
card slot, to mess up any attempts to read the card externally, although
this couldn't be too strong or it would delete info on the card. Perhaps
a mu-metal extension to the card slot would hamper the thieves. The
better crypto solution would be to use a smart card and a challenge-
response protocol which didn't betray any information to an
eavesdropping third party.

SAN MATEO, Calif. - San Mateo police have arrested a suspect they believe was involved in putting a "skimmer" device on an ATM at a local petroleum marketing location and taking more than $200,000 from about 80 customers, the San Francisco Chronicle reported.

With dozens of reports of fraudulent ATM charges coming in, police soon made the connection with the Coast retail site on Hillsdale Boulevard. The police found a credit card "skimmer" - a small device containing a magnetic card skimmer and memory chip. Police believe the device was used to record ATM card numbers from customers who handed the sales associate a card before going to pump fuel.

Police are seeking a man who approached the store owner about buying the site last fall, and who worked at the store part time in order to learn the business. In the meantime, the store's owner has spent $35,000 on new pumps with built-in card readers.

In last month's NACS Daily story, Barry Schreiber, professor of criminal justice at St. Cloud State University, St. Cloud, Minn., said retailers need to be on the lookout for signs of tampering and other unusual activity, to prevent scam artists from attaching a foreign device to their ATM or pump card readers.

Has a card reader at your store been used by criminals to commit fraud? E-mail NACS Center to share your story.

A police representative said that the thieves installed a bogus card reader at the entrance to an ATM room and used video cameras to steal PIN numbers. The free-standing ATM is located in a strip mall in Enfield.

FBI agents are assisting in the investigation.

Authorities describe the scheme as "ingenious," but added that it would not work if ATM users take precautions. Over the past three weeks, 40 Fleet Bank customers have fell victim to the scam.

DENVER -- A Denver woman said she might be Colorado's first victim of an ATM scam called "skimming," where an extra card reader is attached to an ATM.

See How ATM Skimming Scam Fraud Works

Naomi Jiminez said someone stole $900 from her account and she suspects it's because of an illegal card reader.

In the scam, the ATM works as it should but the "skimmer" device, which looks just like a regular card reader, stores your name and account number, which can then be downloaded onto the Internet to make a duplicate card and then access your account.

"At the same time I'm at home, somebody is over on South Broadway pulling out $900 of my money. I have no other explanation for it," Jiminez said.

Jiminez's bank is looking into her case to see if she'll get her money back. Colorado authorities said they know about the skimming scams but don't have any "confirmed" cases in the state so far.

Authorities in other states said that most of the times, these false card readers are on ATMs that are placed in convenience stores.

Skimmers are also attached to the outside of the gas pumps. Officials say be on alert and keep a close tab on your bank and credit card statements.

This is not to suggest Diebold or any other ATM company are in any way responsible for above scams. As computer companies can't be blamed when your home/business computer dies due to some "worm" or "virus" some sixteen year old just created. It is to suggest that there are people out their who can't sleep at night until they've "cracked the code" beat the technology. It's an on-going war, from home security, car alarms, networks, ATM's.., and now we wish to become dependant on this technology to handle our votes, from registration thru to tallies, without providing basic security measures available, like paper receipt of transaction, as we do for ATM's.

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