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SCI/TECH: ATMs may be an easy target for thieves

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posted on Aug, 2 2005 @ 09:13 AM
Due to lax bank security, thieves are now able to withdraw funds from other peoples accounts using forged bank cards. The security flaw is ATM's are not verifying if the card is the same one that was issued by the bank.
Due to phishing scams and the ready availability of blank "white" cards, what used to be a small issue of fraud is on the rise. In one instance, a bank is reporting losses of a $1,000.000 per month due to this security breach.
It's supposed to be impossible. Criminals aren't supposed to be able to print their own ATM cards and withdraw funds from your bank accounts at cash machines.

But a new report from the research firm Gartner Inc. says many banks are skipping an important security check, which makes it easier for criminals to forge ATM cards and walk off with thousands of dollars at a time.
"Until recently ATM fraud was fairly limited,” Litan said. “This is a pretty new phenomenon that has caught banks off guard."

Please visit the link provided for the complete story.

This is indeed a growing problem that is much more widespread than most people think. Identity theft is one of the fastest growing crimes in the US today. People are losing not only the money in their bank accounts (which most banks will of course replace, at a price to the rest of it's consumers), but they are losing their identities to thieves through various means such as Social Security number fraud, incorrect information listed on credit bureaus as well as the theft of of this information by hackers.
This is costing the American citizen millions if not billions of dollars a year.
The technology age and the centralization of information was supposed to be lead to a more secure and stable lifestyle. Instead today, the availability and centralization of information has put each and everyone at risk today as well as their future! We need to take a more agressive outlook on this type of crime!

Indian call Centers sell bank information

ID Theft concerns growing Tools are lacking

40 Million Credit Cards Exposed
Credit Card Processor Admits Fault

[edit on 2-8-2005 by kenshiro2012]

[edit on 2-8-2005 by kenshiro2012]

posted on Aug, 2 2005 @ 12:43 PM
Good sources that you provided.
I was unaware of how these guys got your personal info - now I see that it is being sold by those employed in the card loop!

Wherever there is money involved, there are sure to be a few crooks looking to snatch it.

posted on Aug, 3 2005 @ 10:54 AM
I am very surprised that this has only received one response.
This can affect every person who has a credit / debit card. It is not just an American issue but one that is international.

posted on Aug, 3 2005 @ 11:25 AM
In the UK since 1st January 2005 all Debit and Credit Cards now issued have a microchip on them. All customers had new cards sent to them. This is meant to stop the forgery of signatures during purchases using fake cards, and also to combat ATM fraud. I am not sure if this is in place in the US? or if it is successfull in stopping ATM fraud. Even if it does stop this the sophistication of the forgers will increase until they are able to duplicate the chips as well.
Chip and Pin Info

Though there does appear to be problems in getting full saturation of the market with these cards:

Only 44% of adults have been sent all their replacement cards. The remainder are still using old cards which can be cheaply cloned and are verified by a signature that is easily forged.

This Is Money 19July2005

It seems though to just have changed the 'spending habits' of the fraudsters

Mark Bowerman, spokesman for the Association of Clearing Services, said: “Our latest figures showed that CNP fraud went up by 24 per cent from £122m in 2003 to £150.8m in 2004. Because of chip and PIN, credit card fraudsters will look to migrate to other areas, such as online or telephone transactions, so e-tailers need to be confident that transactions are genuine.”

Chip and PIN pushes fraud attempts online 25July05

Also there is doubts on its effectiveness:

Analysis of credit card fraud since January shows that criminals have already adapted to chip and pin. Point-of-sale fraud has fallen but fraud involving credit card transactions conducted by phone has increased by more than 150%.

This is really an important issue for everyone, as society moves more and more to a 'Cashless' one, I personaly avoid using cards whenever I can and prefer cash, its safe, trustworthy, tangible and I think more personal.



posted on Aug, 3 2005 @ 11:44 AM
I personnally prefer using plastic. Just be sure to pay the balance off each month or you will regret the added service charge and 18 to 22% interest compounded each month on all transactions there after. The international banking community will need to come up with some way to authenticate it is really the account holder that is debiting the account. I dislike the thought of having an RFID chip in my head, AFIS (automated finger print indentification), rectile scan or a quick DNA analysis. But, something needs to occur to eliminate fraud. In the end, Insurance Companies and the Banking Industry will continue to get richer, we will pay for the fraud not the businesses.

posted on Aug, 3 2005 @ 01:42 PM
If you have had your identity stolen, or you know someone who has, please post here. Let's have a show of hands... I'm a bit cynical when it comes to all this stuff. Although identity theft does occur, I think the levels and severity of the problem are grossly over-hyped, and I think it's to prepare us for the inevitable: chipped implants, the ultimate identifier.

But here's the thing, as soon as any new security technology comes out, you can guarantee that the means to bypass it will only be a month behind at most. Just ask Microsoft. I remember when magnetic strips for ATM and credit cards first came out, it was heralded as the end of identity theft. Well, look at us now.

If the technology exists to make RFID chips, then the tech exists to counterfeit/reproduce it. All someone needs to do is read the info off your chip somehow, and then plug that into a new chip. The only way to detect multiple copies of the same ID would be if your ID signal was tracked every single minute of the day and at every location, such that when a duplicate popped up, the klaxons would start blaring at RFID GPS-Tracking HQ. A rather nightmarish scenario.

Funny, but with all our uber-cool technology, the safest, most secure means of protecting your funds and your ID is still cash in a safe, and a drivers license and birth certificate.

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