Terminal fraud attacks increase in Europe

Posted on 14/04/2020

EAST has just published a European Payment Terminal Crime Report covering 2019 which reports that terminal fraud attacks were up 35%.

Terminal related fraud attacks rose from 13,511 to 18,217 incidents, mainly driven by an 87% increase in ATM transaction reversal fraud attacks (up from 4,843 to 9,054 incidents), while card skimming incidents fell 21% to an all-time low (down from 1,883 to 1,496 incidents).

EAST Executive Director Lachlan Gunn said, “Despite the overall rise in terminal fraud incidents, total reported losses were almost unchanged. Transaction reversal fraud losses did rise from €2.6 million to €5.2 million, but the continued drop in skimming incidents has helped to keep the overall loss position stable.”

Total losses of €249 million were reported, up 1% from the €247 million reported in 2018. Overall losses due to card skimming were unchanged and losses due to card trapping were down by 14% (from €2.9 million to €2.5 million).

ATM related physical attacks were up 0.5% (from 4,579 to 4,571 incidents). Attacks due to ram raids and ATM burglary were down 11% (from 1,256 to 1,122 incidents) and ATM explosive attacks (including explosive gas and solid explosive attacks) were down 7% (from 1,052 to 977 incidents). Losses due to ATM related physical attacks were €22 million, a 39% decrease from the €36 million reported in 2018.

The average cash loss for a robbery is estimated at €20,369 per incident, the average cash loss per explosive or gas attack is €10,735 and the average cash loss for a ram raid or burglary attack is €9,377. These figures do not take into account collateral damage to equipment or buildings, which can be significant and often exceeds the value of the cash lost in successful attacks.

A total of 140 ATM malware and logical attacks were reported, down from 157 in 2018, an 11% decrease. All the reported attacks were ‘cash out’ or ‘jackpotting’ attacks. In 118 attacks equipment typically referred to as a ‘black box’ was used, and malware was used in the other 22 attacks. Related losses were up 142%, from €0.45 million to €1.09 million.

A summary of the report statistics under the main headings is in the table below.

The full Crime Report is available to EAST Members (National, Global and Associate)

EAST Publishes European Fraud Update 1-2020

Posted on 19/03/2020

EAST has just published its first European Fraud Update for 2020. This is based on country crime updates given by representatives of 18 countries in the Single Euro Payments Area (SEPA), and 2 non-SEPA countries, at the 50th EAST meeting held in Vienna on 12th February 2020.

Payment fraud issues were reported by eighteen countries. Seven countries reported CNP fraud occurring worldwide. One reported that the card data is either bought in bulk or obtained via card testing/BIN attacks. The attackers use scripts/bots (not real people) to conduct the fraud. Four countries reported BIN attacks. One reported that they are originating from the Middle East for the first time and another reported them in relation to both CP and CNP fraud, with losses reported in the USA, the UK and Brazil. Two countries reported Account Takeover Fraud, one of them in connection with SIM swapping.

Six countries reported phishing. One reported the use of fake emails by criminals to impersonate bank customers, claiming that their bank account details have changed. Another reported that online banking was targeted, and a third country reported phishing using social networks, with related fraud occurring in China. Three countries reported SMS phishing (Smishing). One of them reported this related to token validation transactions – the IP addresses are in Morocco and the fraud occurs in an EU country with losses via Western Union.

To date in 2020 the EAST Payments Task Force (EPTF) has published one related Payment Alert.

ATM malware and logical attacks were reported by twelve countries – one reported successful ATM malware attacks where ‘Cutlet Maker’ was used, and ten reported the usage (or attempted usage) of ‘black-box’ devices to allow the unauthorised dispensing of cash. To date in 2020 the EAST Expert Group on All Terminal Fraud (EGAF) has published one related Fraud Alert.

Card skimming at ATMs was reported by ten countries, and the downward trend continues. Six countries reported the usage of ‘M3 – Card Reader Internal Skimming devices’, and the usage of ‘M1 – Overlay Skimming Devices’ and ‘M2 – Throat Inlay Skimming Devices’ was also reported. Skimming attacks on other terminal types were reported by eight countries. Four reported attacks on unattended payment terminals (UPTs) at petrol stations, and three reported attacks at railway ticket machines. To date in 2020 EAST EGAF has published four related Fraud Alerts.

Year to date International skimming related losses were reported in 14 countries and territories outside SEPA and in 4 within SEPA. The top three locations where such losses were reported remain Indonesia, India and the USA.

Five countries reported card trapping attacks, one of them reporting a new method that allows several cards to be captured in one attack. Three countries reported transaction reversal fraud (TRF) incidents. To date in 2020 EAST EGAF has published two related Fraud Alerts.

Ram raids and ATM burglary were reported by eleven countries and eleven countries reported explosive gas attacks, one of which resulted in a fatality. Eight countries reported solid explosive attacks. The usage of Triacetone Triperoxide (TATP) for solid explosive attacks continues to increase across Europe. Mixing TAPT is a complicated procedure that requires good knowledge of the chemicals, as there is a danger of setting off an unexpected explosion. The spread of such attacks is of great concern to the industry due to the risk to life and to the significant amount of collateral damage to equipment and buildings.
To date in 2020 the EAST Expert Group on ATM & ATS Physical Attacks (EGAP) has published two related Physical Attack Alerts.

The full European Fraud Update is available to EAST Members (National, Global and Associate).

Europol publishes Turkish language version of ATM Logical Attack Guidelines

Posted on 27/01/2020

Europol has just published a Turkish language version of guidelines to help industry and law enforcement counter the ATM Logical Attack threat. The English version of the document was officially launched in January 2019 at the 17th Meeting of the EAST Expert Group on All Terminal Fraud (EAST EGAF). The document is now available in English, French, German, Spanish, Russian and Turkish.

The production of this document was coordinated by EAST EGAF. It has three sections:

Description of Modi Operandi (Hareket Tarzi Açiklamas i)
Mitigating the risk of ATM Logical and Malware Attacks, Setting up Lines of Defence (ATM’lere Yönelik Mantiksal ve Kötü Niyetli Yazilim Saldirilarinin Risklerini Hafifletmek Savunma Hatlari Kurmak)
Identifying and responding to Logical and Malware Attacks (Mantiksal ve KÖTÜ Niyetli Yazilim Saldirilarini Saptamak ve Yanitlamak)

The Guidelines were first published in 2015 and this latest version provides clearer definitions and greater clarity of the criminal methods and techniques encountered in these attacks, along with more detailed recommendations on how to mount a robust and effective response to them. The recent fall in ATM malware and logical attacks, as reported by EAST in the latest European Payment Terminal Crime Report published in October 2019, reflects the work that has been put into preventing such attacks by the industry and law enforcement.

Circulation of the document is restricted to Law Enforcement and to the banking and payments industry, which includes EAST Members (National and Associate).

EAST EGAF holds 20th Meeting in Amsterdam

Posted on 15/01/2020

The 20th Meeting of the EAST Expert Group on All Terminal Fraud (EAST EGAF) took place on Wednesday 15th January 2020 at ING Domestic Bank in Amsterdam.

EAST EGAF is a regional expert group that focuses on regional and global payment terminal crime and fraud related issues, threats and counter-measures.

The meeting was chaired by Mr Otto de Jong from ING Bank and was attended by key representatives from Terminal Deployers, Terminal Vendors, Networks, Card Schemes, Security Equipment and Software Vendors, Law Enforcement and Forensic Analysts.

This was a milestone meeting and, in recognition of his work in founding and supporting EGAF, as well as his 16 years of active support for EAST, Otto was presented with an award by Ms Veronica Borgogna of BANCOMAT S.p.A, the current Chair of EAST.

Presentations were made by Europol (AP Cyborg), Geldmaat, Damage Control and Fiducia & GAD IT AG.

The EGAF Group, which meets three times a year in advance of each of the meetings of EAST National Members, enables in-depth and technical discussion to take place on Logical and Malware attacks, Card Skimming, Card Trapping, Cash Trapping and Transaction Reversal Fraud.

In addition EAST EGAF generates EAST Fraud Alerts for all EAST Members (National, Global and Associate). In total 227 EAST Fraud Alerts have been issued, 2 to date in 2020.

Europol publishes German language version of ATM Logical Attack Guidelines

Posted on 28/11/2019

Europol has just published a German language version of guidelines to help industry and law enforcement counter the ATM Logical Attack threat. The English version of the document was officially launched in January 2019 at the 17th Meeting of the EAST Expert Group on All Terminal Fraud (EAST EGAF). The document is now available in English, French, German, Spanish and Russian.

The production of this document was coordinated by EAST EGAF. It has three sections:

Description of Modi Operandi (Beschreibung Der Vorgehensweise)
Mitigating the risk of ATM Logical and Malware Attacks, Setting up Lines of Defence (Risiken Für Logische System-Angriffe Und Malware-Attacken Auf Geldautomaten Verringern, Abwehrmechanismen Etablieren)
Identifying and responding to Logical and Malware Attacks (Logische Systemangriffe Und Malware-Attacken Erkennen Und Darauf Reagieren)

Circulation of the document is restricted to Law Enforcement and to the banking and payments industry, which includes EAST Members (National and Associate).

Europol publishes Russian language version of ATM Logical Attack Guidelines

Posted on 27/11/2019

Europol has just published a Russian language version of guidelines to help industry and law enforcement counter the ATM Logical Attack threat. The English version of the document was officially launched in January 2019 at the 17th Meeting of the EAST Expert Group on All Terminal Fraud (EAST EGAF). The document is now available in English, French, Spanish and Russian.

The production of this document was coordinated by EAST EGAF. It has three sections:

Description of Modi Operandi (ОПИСАНИЕ CПОСОБОВ РЕАЛИЗАЦИИ АТАК)
Mitigating the risk of ATM Logical and Malware Attacks, Setting up Lines of Defence (МИНИМИЗАЦИЯ РИСКА ЛОГИЧЕСКИХ АТАК И АТАК С ПРИМЕНЕНИЕМ ВРЕДОНОСНОГО ПО, УСТАНОВКА ЛИНИЙ ЗАЩИТЫ)
Identifying and responding to Logical and Malware Attacks (ИДЕНТИФИКАЦИЯ И РЕАГИРОВАНИЕ НА ЛОГИЧЕСКИЕ АТАКИ)

Circulation of the document is restricted to Law Enforcement and to the banking and payments industry, which includes EAST Members (National and Associate).

EAST Publishes European Fraud Update 3-2019

Posted on 15/11/2019

EAST has just published its third European Fraud Update for 2019. This is based on country crime updates given by representatives of 16 countries in the Single Euro Payments Area (SEPA), and 4 non-SEPA countries, at the 49th EAST Meeting held in London on 8th October 2019.

Payment fraud issues were reported by seventeen countries. Social engineering is a key concern. Seven countries reported phishing attacks. One of them stated that fraudsters are using phishing to get targets for fake web campaigns where consumers can win money, and another reported fake web surveys aimed at getting consumer data. In one country the quality of vishing calls is improving, where the people making the spoof calls are very believable and often have local accents from the customer’s home area. Impersonation fraud was reported by four countries – in one of them police officers are impersonated, and another reported spoof calls being received by customers from bank call centres.

Card Not Present (CNP) fraud was reported by six countries. One of them reported CNP fraud at digital media players. Contactless fraud was reported by two countries – in one of them it is related to lost and stolen cards, and in the other card present (CP) transactions are being made at small merchants up to the allowed limit. To date in 2019 the EAST Payments Task Force (EPTF) has issued five related Payment Alerts.

ATM malware and logical attacks were reported by five countries – one reported a new way of getting malware onto an ATM, that did not succeed, and four reported the usage (or attempted usage) of ‘black-box’ devices to allow the unauthorised dispensing of cash. To date in 2019 the EAST Expert Group on All Terminal Fraud (EGAF) has published seven related Fraud Alerts.

Card skimming at ATMs was reported by thirteen countries. Overall skimming incidents in Europe continue to decline. Three countries reported the usage of ‘M3 – Card Reader Internal Skimming devices’, and the most recent variants continue to be made of transparent plastic. To date in 2019 EAST EGAF has published thirteen related Fraud Alerts. Year to date International skimming related losses were reported in 41 countries and territories outside SEPA and in 4 within SEPA. The top three locations where such losses were reported remain Indonesia, India and the USA.

Four countries reported card trapping attacks, one of them reporting such attacks at fake terminals, designed to resemble lobby door opening devices at bank branches.

Ram raids and ATM burglary were reported by nine countries and twelve countries reported explosive gas attacks. After one such attack collateral damage of over €200,000 was reported. Six countries reported solid explosive attacks. The usage of Triacetone Triperoxide (TATP) for solid explosive attacks is increasing across Europe. This explosive is also known as the ‘Mother of Satan’. Mixing TAPT is a complicated procedure that requires good knowledge of the chemicals, as there is a danger of setting off an unexpected explosion.

The spread of such attacks is of great concern to the industry due to the risk to life and to the significant amount of collateral damage to equipment and buildings. To date in 2019 the EAST Expert Group on ATM & ATS Physical Attacks (EGAP) has published nine related Physical Attack Alerts.

The full European Fraud Update is available to EAST Members (National and Associate).

ATM malware and logical attacks fall in Europe

Posted on 09/10/2019

EAST has just published a European Payment Terminal Crime Report covering the first six months of 2019 which reports that ATM malware and logical attacks continue to trend downwards.

ATM malware and logical attacks against ATMs were down 43% (from 61 to 35) and all bar one of the reported ‘jackpotting’ attacks are believed to have been unsuccessful. Malware was used for 3 of the attack attempts and the remainder were ‘black box’ attacks. Related losses were down 100% (from €0.25 million to €0.00 million), although a small loss (less than €1,000) was reported in one case.

EAST Executive Director Lachlan Gunn said, “This fall in logical and malware attacks is very good news and reflects the work that has been put into preventing such attacks by the industry and law enforcement. In January 2019, supported by our Expert Group on All Terminal Fraud (EGAF), Europol updated their ‘Guidance & recommendations regarding logical attacks on ATMs’, which was first published in 2015. These Guidelines, which have been widely shared with ATM deployers and law enforcement agencies, reinforce the recommendations made by the ATM vendors.”

Terminal related fraud attacks were up 59% (from 6,760 to 10,723 incidents). This increase was primarily due to an increase in transaction reversal fraud attacks (up from 2,292 to 5,649 incidents), while card skimming incidents fell to an all time low (down from 985 to 731 incidents). This downward trend reflects the success of EMV and that measures to counter skimming at terminals, along with geo-blocking, are working well in Europe.

Total losses of €124 million were reported, up 16% from the €107 million reported during the same period in 2018. This increase is primarily due to a rise in international losses due to card skimming (up from €87 million to €100 million), which indicates that EMV implementation is not yet complete globally with resultant risks for European cardholders. Losses due to transaction reversal fraud were up 135% (from €1.36 million to €3.2 million).

ATM related physical attacks were up 16% (from 2,046 to 2,376 incidents). Attacks due to ram raids and ATM burglary were up 3% (from 590 to 610 incidents) and ATM explosive attacks (including explosive gas and solid explosive attacks) were up 3% (from 490 to 503 incidents). Losses due to ATM related physical attacks were €11.4 million, a 25% decrease from the €15.1 million reported during the same period in 2018.

The average cash loss for a robbery is estimated at €15,140 per incident, the average cash loss per explosive or gas attack is €10,161 and the average cash loss for a ram raid or burglary attack is €9,632. These figures do not take into account collateral damage to equipment or buildings, which can be significant and often exceeds the value of the cash lost in successful attacks.

A summary of the report statistics under the main headings is in the table below.

The full Crime Report is available to EAST Members (National and Associate)

EAST EGAF holds 19th Meeting in Amsterdam

Posted on 19/09/2019

The Nineteenth Meeting of the EAST Expert Group on All Terminal Fraud (EAST EGAF) took place on Wednesday 18th September 2019 at ING Domestic Bank in Amsterdam.

EAST EGAF is a regional expert group that focuses on regional and global payment terminal crime and fraud related issues, threats and counter-measures.

The meeting was chaired by Mr Otto de Jong and was attended by key representatives from Terminal Deployers, Terminal Vendors, Networks, Card Schemes, Security Equipment and Software Vendors, Law Enforcement and Forensic Analysts.

The Group, which meets three times a year in advance of each of the meetings of EAST National Members, enables in-depth and technical discussion to take place on Logical and Malware attacks, Card Skimming, Card Trapping, Cash Trapping and Transaction Reversal Fraud.

In addition EAST EGAF generates EAST Fraud Alerts for all EAST Members (National and Associate). In total 219 EAST Fraud Alerts have been issued, 18 to date in 2019.

EAST EGAF meetings are restricted to working group members and, to provide a wider platform for sharing/discussion, the Group is holding a half-day open seminar in London on 9th October 2019. Registration for this is still open and more information can be found on the EAST Events website.

Terminal Fraud Update – EAST FCS Seminars 2019

Posted on 17/09/2019

Act now to save your place for the Terminal Fraud Seminar that will be held by the EAST Expert Group on All Terminal Fraud (EGAF) on 9th October 2019.

SESSION FOCUS – LOGICAL SECURITY UPDATE

This session will focus on logical attacks against ATMs. These can be split into two types – black box attacks and malware attacks.

EAST EGAF Chair, Otto de Jong of ING Bank, will first present on black box attacks. These are a type of jackpotting attack. The criminals connect an unauthorised device (or black box) which sends dispense commands directly to the ATM cash dispenser in order to ‘Cash-Out’ the ATM. He will cover the latest developments for this type of attack methodology.

Then Terence Devereux of Diebold Nixdorf will present an update on malware attacks. For these attacks the criminals use unauthorised software, or authorised software run in an unauthorised manner, on the ATM’s PC. These attacks are focussed on either jackpotting (most common), or card skimming, as follows:

Jackpotting: Targets control of the cash dispense function in order to ‘cash-out’ the ATM
Man-In-The-Middle (MitM): Targets communication between the ATM’s PC and the acquirer host system in order to falsify host responses and dispense cash without debiting the criminal’s account
SW-Skimming: Targets card and PIN data in order to create counterfeit cards for subsequent fraudulent transactions

This interactive event follows the basic structure of EAST EGAF Member meetings. Attendance at EAST EGAF meetings is limited, as it is a working group, and this event enables a wider participation and the opportunity for all attendees to engage with the Group and its organizers.

The EAST FCS Seminars will be co-located with RBR’s ATM & Cyber Security 2019 event, although separate registration is required.

2019 EAST FCS ATM Physical Attack Seminar Sponsors

Additional sponsorship opportunities are still available