The rapid development of banking technology has transformed the way banking activities are dealt with. Over the past decades, consumers have been largely depending on Automatic Teller Machine (ATM) to conveniently meet their banking needs. ATM frauds have become widespread due to numerous factors.
Types of ATM Frauds
1. Skimming attacks: One of the most popular breaches in ATM transaction, lawbreakers harp on technology to make counterfeit ATM cards with a skimmer, a card swipe device that reads the information on the ATM card. The skimmer allows the download of personal data when removed from the ATM. A single skimmer can retain information from more than 200 ATM cards before being reused.
2. Card trapping: Involves placing a device directly over or into the ATM card reader, where the card is physically captured, then retrieved by criminals.
3. PIN Cracking: Attacks on users personal identification numbers
4. Phishing or Vishing attacks: These scams are designed to entice the user to provide their card number or PIN using emails representing them as a bank. If any user clicks a link and follows the direction provided, which directs the user to a site designed by the attacker to look like the bank. Attackers would extract the needed information and withdraw the victim's bank funds.
5.ATM malware: These attacks require an insider, an ATM mechanic, for instance, to install the malware un the machine. Once installed attackers can insert a control card to trigger the malware. It can capture magnetic stripe data and PIN codes.
6. ATM hacking: Using sophisticated programming techniques to break into websites of a financial institution's network. Attackers can access the bank's systems to locate the ATM database and hence collect card information.
Fighting ATM Frauds
As more transactions are conducted, more threat breaches arise challenging the security of the system.
Provision of strong authentication can be used instead of a PIN. The biometric integrated system is safer when compared with the conventional ATM system. It recognizes the actual account holder, and nobody other than cardholder can operate the ATM. The commonly used biometric features which are very different among individuals are DNA, Face, Ear, Facial infrared thermogram, Fingerprint, Hand and Finger geometry, Iris, Keystroke, Palm prints, Signature, Voice etc. which are very different amongst individuals.
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Artificial Intelligence is driven self-learning programs can mimic the activity of a human brain in detecting suspicious activities and are able to adapt itself with new requirements. Reviewing the security measures and operational systems on which ATMs are running can avoid future attacks. Once the system is upgraded banks should conduct regular monitoring of their ATMs.
