Cash machine rigging by-passes benefits of Chip & PIN

Posted in 'Identity Theft' by Richard Catlin

28 August 2008

By posing as cash machine engineers, criminals have been able to get access to Chip & PIN machines, allowing them to install high-tech devices that record card details every time the cash machine is used. This data is then transmitted directly to a separate device, before the card details are cloned and accounts emptied. Most fraudulent withdrawals are made overseas, in countries where Chip & PIN technology is yet to be implemented.

In some cases, the criminals have applied for jobs in the retail outlets or petrol stations that house the cash machines, or got existing employees involved in the scam.

Two men have been arrested and a large amount of counterfeiting equipment seized in police raids in Birmingham, where thousands of cards were found to have been cloned from up to 30 machines. Similar attacks were uncovered in Ireland and are currently being investigated.

Security experts are warning that these attacks serve to highlight that although Chip & PIN has helped to reduce high street fraud in the UK – from over £218 million in 2004 to £73 million in 2007 – it is far from infallible.

These attacks are just the latest in a long line of methods that fraudsters and identity thieves are employing to target our personal details. Anyone unfortunate enough to fall victim is usually protected against losses by their bank, but the stress and hassle involved is considerable.

Use our Free Identity Theft Check to see if your lifestyle places you at risk of identity fraud, and if so, we’ll give you a load of tips to help you reduce the risk of falling victim. It might not be possible to eliminate the threat completely, but you can certainly improve your chances of staying protected with just a few simple steps.