ATM Fraud: Shift in Technology Makes US Cardholders a Target

November 1, 2010

According to recent media coverage and expert prediction, ATM skimming is anticipated to escalate in 2011.  As Europe and other countries convert from magnetic-stripe technology to EMV chip standard or smart card technology, criminals are focusing on the US as a prime target.

The EMV chip stores information on an embedded microchip rather than on a magnetic-stripe, making it extremely difficult for criminals to obtain stored data. This new technology has stopped criminals in their tracks – forcing them to focus elsewhere.  As Europe and other countries convert to this technology, criminals are setting their sights on countries such as the US where magnetic-stripe technology continues to be the norm. This shift in technology and increasing threat makes it critical for financial institutions and their customers/members to protect their PIN information.

Knowledge plays a vital role in preventing financial fraud. Make sure employees and customers/members  are up-to-date on effective security practices through consistent security awareness training and educational campaigns.

In addition to education, make sure physical systems and software security is current and up-to-par. Start by performing regularly scheduled TR-39 reviews.

The TR-39 review is designed to make sure keys, key components, and key loading or storage devices are properly managed. Improper key management creates a security exposure that could result in significant losses to consumers and financial institutions. In addition, it puts the security of all users of the ATM network at risk, creating potentially serious liability for your organization.

The proper certification to perform TR-39 reviews is the CTGA certification.  TrustCC is one of only a handful of firms with this certification and with experience evaluating compliance with ATM network security requirements.  And unlike any of our competitors, we are the only firm that will conduct a vulnerability scan of our clients’ ATMs to detect missing security updates on the ATM.

If you have questions or need assistance with your TR-39 review or security awareness training, please don’t hesitate to reach us through our contact form at the bottom of our homepage at www.trustcc.com.

– TrustCC


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