NOVEMBER 2014 NUMBER 11 WWW.NCUA.GOV
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2 Chairman’s Corner
4 Board Perspectives
Taking the Time
to Get It Right
5 Board Actions
No Share Insurance
6 Understanding Risks
8 Five New NCUA Videos
to Fight Fraud
9 Mobile Banking,
10 Find a Credit Union
with Our Locator App
Office of National Examinations and Supervision Report
ATM SKIMMERS: CAN YOU SPOT THEM?
A credit union member needs to get cash
before heading to work, so she stops by an
ATM. The member inserts her card into the
ATM, enters her pin, grabs her cash and
continues about her business. Seems very
routine and safe, right?
Actually, ATMs are frequently compromised
by card skimmers, devices that steal card
data and record cardholder PIN numbers
that look just like the components of an
ATM. Credit card thieves will often
temporarily affix a card-skimmer device to
gas pumps, ATMs or other convenient self-service, point-of-sale terminals consumers
use. Thieves in particular like gas pumps and
ATMs because they can install and retrieve
their skimmers quickly and easily, and they
receive a lot of traffic.
Skimmers are being used on magnetic strip
ATMs and even EMV-ready machines.
According to a 2014 Verizon Data Breach
Investigations Report, 22 percent of all data
breaches reported in the financial services
sector were from card-skimming attacks.
Nearly 87 percent of skimming attacks were
carried out on ATMs.
Over the years, skimmer technology has
become cheaper and more sophisticated.
ATM faceplates can be purchased easily by
anyone online. Some skimmers capture card
information using a magnetic reader and use
a miniature camera to record cardholders
typing in their PIN numbers. Others place a
secondary keypad over the top of the ATM’s
real keypad. These devices can be installed
in seconds and can even send card details
back to the criminals wirelessly.
Too often, credit unions don’t know their
ATMs have been tampered with until
members report fraudulent activity in their
Credit unions need to prepare for these types
of breaches and take the steps necessary to
protect themselves and their members.
Here are steps that credit unions can take to
reduce the potential for card skimming:
n Use Tamper-resistant Terminals: ATMs
are increasingly designed with this in
mind. Credit unions should consider
replacing older machines with newer
and better protected terminals.
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