Posts Tagged: insert skimmer


26
Nov 14

Skimmer Innovation: ‘Wiretapping’ ATMs

Banks in Europe are warning about the emergence of a rare, virtually invisible form of ATM skimmer involving a so-called “wiretapping” device that is inserted through a tiny hole cut in the cash machine’s front. The hole is covered up by a fake decal, and the thieves then use custom-made equipment to attach the device to ATM’s internal card reader.

According to the European ATM Security Team (EAST), a nonprofit that represents banks in 29 countries, financial institutions in two countries recently reported ATM attacks in which the card data was compromised internally by “wire-tapping” or “eavesdropping” on the customer transaction. The image below shows some criminal equipment used to perpetrate these eavesdropping attacks.

Equipment used by crooks to conduct "eavesdropping" or "wiretapping" attacks on ATMs.

Equipment used by crooks to conduct “eavesdropping” or “wiretapping” attacks on ATMs. Source: EAST.

“The criminals cut a hole in the fascia around the card reader where the decal is situated,” EAST described in a recent, non-public report. “A device is then inserted and connected internally onto the card reader, and the hole covered with a fake decal”
[pictured, bottom right].

Pictured above are what appear to be wires that are fed into the machine with some custom-made rods. It looks like the data is collected by removing the decal, fishing out the wire attached to the ATM’s card reader, and connecting it to a handheld data storage device.

I sought clarification from EAST about how the device works. Most skimmers are card slot overlay devices that work by using a built-in component which reads the account data off of the magnetic stripe when the customer inserts the card. But Lachlan Gunn, EAST’s executive director, suggested that this device intercepts the card data from the legitimate card reader on the inside of the ATM. He described the wiretapping device this way:

“It’s where a tap is attached to the pre-read head or read head of the card reader,” Lachlan said. “The card data is then read through the tap. We still classify it as skimming, but technically the magnetic stripe [on the customer/victim’s card] is not directly skimmed as the data is intercepted.”

The last report in my ATM skimming series showcased some major innovations in so-called “insert skimmers,” card-skimming devices made to fix snugly and invisibly inside the throat of the card acceptance slot. EAST’s new report includes another, slightly more advanced, insert skimmer that’s being called an “insert transmitter skimmer.”

Like the one pictured below, an insert transmitter skimmer is made up of two steel plates and an internal battery that lasts approximately one to two weeks. “They do not store data, but transmit it directly to a receiving device — probably placed less than 1 meter from the ATM. Continue reading →


21
Aug 14

Stealthy, Razor Thin ATM Insert Skimmers

An increasing number of ATM skimmers targeting banks and consumers appear to be of the razor-thin insert variety. These card-skimming devices are made to fit snugly and invisibly inside the throat of the card acceptance slot. Here’s a look at a stealthy new model of insert skimmer pulled from a cash machine in southern Europe just this past week.

The bank that shared these photos asked to remain anonymous, noting that the incident is still under investigation. But according to an executive at this financial institution, the skimmer below was discovered inside the ATM’s card slot by a bank technician after the ATM’s “fatal error” alarm was set off, warning that someone was likely tampering with the cash machine.

A side view of the stainless steel insert skimmer pulled from a European ATM.

A side view of the stainless steel insert skimmer pulled from a European ATM.

“It was discovered in the ATM’s card slot and the fraudsters didn’t manage to withdraw it,” the bank employee said. “We didn’t capture any hidden camera [because] they probably took it. There were definitely no PIN pad [overlays]. In all skimming cases lately we see through the videos that fraudsters capture the PIN through [hidden] cameras.”

Here’s a closer look at the electronics inside this badboy, which appears to be powered by a simple $3 Energizer Lithium Coin battery (CR2012):

The backside of the insert skimmer reveals a tiny battery and a small data storage device (far left).

The backside of the insert skimmer reveals a small battery (top) and a tiny data storage device (far left).

Flip the device around and we get another look at the battery and the data storage component. The small area circled in red on the left in the image below appears to be the component that’s made to read the data from the magnetic stripe of cards inserted into the compromised ATM.

insert-frontside

Virtually all European banks issue chip-and-PIN cards (also called Europay, Mastercard and Visa or EMV), which make it far more expensive for thieves to duplicate and profit from counterfeit cards. Even still, ATM skimming remains a problem for European banks mainly because several parts of the world — most notably the United States and countries in Asia and South America — have not yet adopted this standard. Continue reading →


24
Jul 12

ATM Skimmers Get Wafer Thin

It’s getting harder to detect some of the newer ATM skimmers, fraud devices attached to or inserted into cash machines and designed to steal card and PIN data. Among the latest and most difficult-to-spot skimmer innovations is a wafer-thin card reading device that can be inserted directly into the ATM’s card acceptance slot.

That’s according to two recent reports from the European ATM Security Team (EAST), an organization that collects ATM fraud reports from countries in the region. In both reports, EAST said one country (it isn’t naming which) alerted them about a new form of skimming device that is thin enough to be inserted directly into the card reader slot. These devices record the data stored on the magnetic stripe on the back of the card as it is slid into a compromised ATM.

Wafer-thin skimmers like these are showing up in ATMs in one European nation. Images courtesy EAST.

Continue reading →