Banking industry giant NCR Corp. [NYSE: NCR] late last month took the unusual step of temporarily blocking third-party financial data aggregators Mint and QuicBooks Online from accessing Digital Insight, an online banking platform used by hundreds of financial institutions. That ban, which came in response to a series of bank account takeovers in which cybercriminals used aggregation sites to surveil and drain consumer accounts, has since been rescinded. But the incident raises fresh questions about the proper role of digital banking platforms in fighting password abuse.
ATM “jackpotting” — a sophisticated crime in which thieves install malicious software and/or hardware at ATMs that forces the machines to spit out huge volumes of cash on demand — has long been a threat for banks in Europe and Asia, yet these attacks somehow have eluded U.S. ATM operators. But all that changed this week after the U.S. Secret Service quietly began warning financial institutions that jackpotting attacks have now been spotted targeting cash machines here in the United States.
Crooks who make and deploy ATM skimmers are constantly engaged in a cat-and-mouse game with financial institutions, which deploy a variety of technological measures designed to defeat skimming devices. The latest innovation aimed at tipping the scales in favor of skimmer thieves is a small, battery powered device that provides crooks a digital readout indicating whether an ATM likely includes digital anti-skimming technology.
I recently heard from a police detective who was seeking help identifying some strange devices found on two Romanian men caught maxing out stolen credit cards at local retailers. Further inspection revealed the devices to be semi-flexible data transfer wands that thieves can use to extract stolen ATM card data from “deep-insert skimmers,” wafer-thin fraud devices made to be hidden inside of the card acceptance slot on a cash machine.
Several readers have called attention to warnings coming out of Canada about a supposed new form of ATM skimming called “shimming.” Shimming attacks are not new (KrebsOnSecurity first wrote about them in August 2015), but they are likely to become more common as a greater number of banks in the United States shift to issuing chip-based cards. Here’s a brief primer on shimming attacks, and why they succeed.
KrebsOnSecurity has featured several recent posts on “insert skimmers,” ATM skimming devices made to fit snugly and invisibly inside a cash machine’s card acceptance slot. I’m revisiting the subject again because I’ve recently acquired how-to videos produced by two different insert skimmer peddlers, and these silent movies show a great deal more than words can tell about how insert skimmers do their dirty work.
ATM maker NCR Corp. says it is seeing a rapid rise in reports of what it calls “deep insert skimmers,” wafer-thin fraud devices made to be hidden inside of the card acceptance slot on a cash machine.