Terminal Fraud Seminar Update

terminal fraudAn EAST FCS Terminal Fraud Seminar was held on 10th October 2018 in London, co-located with RBRs ATM & Cyber Security 2018 Conference. The interactive and successful event focused on two key outputs of the EAST Expert Group on All Terminal Fraud (EGAF):

  • Guidelines regarding logical attacks on ATMs
  • Standardised fraud definitions

An introduction to EGAF by the Chair, Otto de Jong, was followed by a presentation by EAST’s Executive Director Lachlan Gunn, covering the latest EAST fraud statistics from the H1 2018 European Payment Terminal Crime Report. This highlighted that losses due to card fraud at payment terminals have fallen to the lowest level since 2005. Total losses of €107 million were reported and the decrease is primarily due to a fall in losses due to card skimming (down from €118 million to €104 million). Overall payment terminal related fraud incidents were down 43% (from 11,934 to 6,790). Within this total card skimming incidents were down 19% (from 1,221 to 985) and well below the peak of 5,743 incidents reported during the same period in 2010.

Juan Jesus Leon Cobos of GMV then covered the evolution of ‘Cash-out’/jackpotting attacks, sharing the latest trends from Latin America.  This was followed by a presentation from Tobias-Christian Wieloch of the European Cybercrime Centre (EC3) at Europol which focused on Europol’s published ‘Guidance & Recommendations regarding Logical & Malware Attacks on ATMs’, and an update to it that will soon be available.

Nick Webber, an independent forensic expert, then shared insights into card shimming and ‘wedge’ attacks, with a particular focus on the UK experience.

The final presentation came from Ben Birtwistle of the Royal Bank of Scotland and Claire Shufflebotham of TMD Security, who jointly covered the existing fraud definitions published by EAST, and steps being taken to update and simplify the definitions using graphics, as well as the addition of criminal benefits for each fraud type.  Otto de Jong then summarised the event and what would be taken forward for future discusson.

Attendance to the regular EAST EGAF work group meetings is limited and this event enabled active participation and input from a much wider pool of expertise.  Due to the positive response received from delegates, this Terminal Fraud Seminar is expected to be repeated in 2019.

More information on the event, which was sponsored by NCR, can be found on the EAST Events Website


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2018 EAST FCS Terminal Fraud Seminar Sponsor

 

 

46th EAST Meeting hosted by LINK in London

EASTThe 46th Meeting of EAST National Members was hosted by the LINK scheme in London on 9th October 2018. National country crime updates were provided by 18 countries, and a global update by HSBC.  Topics covered included payment fraud and the evolution of payment technology, ATM malware and logical attacks, terminal related fraud attacks and ATM related physical attacks.

Europol gave a presentation which included information on the latest Internet Organised Crime Threat Assessment (IOCTA) 2018.

Presentations were also given by the EAST Expert Group on All Terminal Fraud (EGAF) and the EAST Expert Group on ATM and ATS Physical Attacks (EGAP).  An update was given by the EAST Payments Task Force (EPTF).

EAST Fraud Update 3-2018 will be produced later this month, based on the national country crime updates provided at the meeting.  EAST Fraud Updates are available on the EAST Website to EAST Members.

Card fraud losses fall to 13 year low

EAST has just published a European Payment Terminal Crime Report covering the first six months of 2018 which reports that losses due to card fraud at payment terminals have fallen to the lowest level since 2005.

Total losses of €107 million were reported and the decrease is primarily due to a fall in losses due to card skimming (down from €118 million to €104 million). Overall payment terminal related fraud incidents were down 43% (from 11,934 to 6,790). Within this total card skimming incidents were down 19% (from 1,221 to 985) and well below the peak of 5,743 incidents reported during the same period in 2010.

EAST Executive Director Lachlan Gunn said, “The significant drop in card skimming incidents and losses reflects the continued effectiveness of EMV, as well as the work that has been put in by payment terminal deployers and card issuers with regard to counter-measures such as geo-blocking, fraud monitoring capabilities and fraud detection. Europe led the way with EMV, which is now a global standard, and all stakeholders in the payment card industry are benefitting from the increased security.”

Logical attacks against ATMs were down 46% (from 114 to 61) and all the reported ‘jackpotting’ attacks were ‘black box’ attacks.  Related losses were down 83% (from €1.51 million to €0.25 million) reflecting the fact that many of these attacks are unsuccessful.

ATM related physical attacks were up 21% (from 1,696 to 2,046 incidents).  Attacks due to ram raids and ATM burglary were up 26% (from 470 to 590 incidents) and ATM explosive attacks (including explosive gas and solid explosive attacks) were up 2% (from 481 to 490 incidents).  Losses due to ATM related physical attacks were €15.1 million, a 24% increase from the €12.2 million reported during the same period in 2017.

The average cash loss per explosive or gas attack is estimated at €14,748, the average cash loss for a robbery is €14,613 per incident and the average cash loss for a ram raid or burglary attack is €12,275.  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.

card fraud

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

Terminal Fraud

terminal fraudWhile most payment transactions take place seamlessly and without issue, financial criminals remain active and terminal fraud is a problem for payment terminal deployers, ATM deployers, card issuers, equipment manufacturers and vendors, software providers, law enforcement agencies and other payment industry stakeholders.  On 10th October 2018 the EAST Expert Group on All Terminal Fraud (EAST EGAF) will hold an open Financial Crime & Security (FCS) Seminar in London to focus on the issue.  EAST EGAF is chaired by Otto de Jong of ING Bank.

EAST Executive Director Lachlan Gunn said ‘EAST EGAF was formed as a working group in 2013 and will hold its 16th Meeting on Wednesday 19th September 2018 in Amsterdam. Attendance at EAST EGAF meetings is restricted in accordance with the group’s Terms of Reference, which makes the coming FCS Seminar in October a great opportunity for all those affected by, or concerned about, terminal fraud to engage with EAST’.

This interactive event focuses on two key outputs of EAST EGAF – Guidelines regarding logical attacks on ATMs and standardised fraud definitions.  An introduction to the Group will be followed by a presentation of the latest EAST Fraud Statistics (H1 2018).  A session by Juan Jesús León Cobos of GMV will then focus on the evolution of cash-out/jackpotting attacks in Latin America, followed by a session by Europol’s Tobias Wieloch highlighting Guidelines on how to counter them.  A perspective on card shimming in the UK will then be given by forensic experts Brian Underhill and Nick Weber, followed by a session on the importance of standardising fraud definitions by Ben Birtwistle of RBS and Claire Shufflebotham of TMD Security. The event is co-located with RBR’s ATM & Cyber Security 2018 Conference.  See the full programme here.

Attendance at EAST EGAF meetings is limited, as it is a working group, and this EAST FCS Seminar enables wider participation and the opportunity for all attendees to engage with the Group and its organisers.


The Seminar is sponsored by:

 

 

 

 

India’s Cosmos bank suffers global ATM cash-out attack

India’s Cosmos cooperative bank has suffered a major global ATM cash-out attack losing Rs 94.42 crore (Euro 12 million approx) in 14,849 transactions between 11 August and 13 August 2018.  The illicit ATM withdrawals took place in at least 28 countries.

On 11 August hackers are believed to have stolen information of the bank’s Visa and Rupay card customers through a malware attack on its ATM (switch) server which led to an initial loss of Rs 80 crore.  According to local police 12,000 transactions were made using Visa cards, which saw Rs 78 crore illegally withdrawn from ATMs in 28 countries, while a further Rs 2 crore were transferred through 2,489 Rupay card transactions in India.

In a second attack on 13 August the hackers initiated SWIFT transactions and transferred Rs 13.92 crore to an account in a Hong Kong-based bank, from where the money was quickly withdrawn.

Cosmos Bank Chairman Milind A. Kale said  “We suspect the malware attack to be done from Canada. The money was withdrawn from ATM machines from 28 countries through around 12,000 international transactions and around 2,849 domestic transactions. The transactions were carried out using fake debit cards. The deposit of account holders is safe and intact. However, as a precautionary measure, we have stopped the online system for two days.”

This attacks comes just days after the US Federal Bureau of Investigation (FBI) issued a confidential alert, warning that cyber criminals were planning an unlimited global ATM cash-out operation.  More details of this can be found on the website Krebs On Security

EAST has worked with Europol to produce guidance and recommendations to counter logical attacks on ATMs, which are now available in four languages. These guidelines are under review and an updated version is expected to be released later this year.

EAST presents at Europol Training on Payment Card Fraud Forensics

card fraud forensics trainingOn 26 June 2018 EAST Development Director Rui Carvalho presented at the fourth edition of the Europol Training Course on Payment Card Fraud Forensics and Investigations at the Spanish National Police Academy in Ávila, Spain. His talk gave an overview of EAST and covered terminal and payment fraud in Europe from the perspective of the private sector.

The Europol training, which ran from 25 to 29 June 2018, covered a wide range of topics including cryptocurrencies, ATM malware, forensic tools for the examination of skimming equipment, Near Field Communication (NFC) technology, EU regulation in non-cash payment, and data breaches or cyber attacks.

The training course was attended by 74 Investigators, forensic experts, and future police officers from 27 countries in the European Union, as well as from Iceland, Gibraltar, Montenegro, Moldova, Canada, Ukraine and South Korea.  Presentations were given by 33 speakers from different law enforcement agencies, the European Commission, Europol and bodies from the private sector (including EAST) and academia.  Since the first training in 2015 over 200 international students have benefited from the training programme, which has been supported by EAST.

45th EAST Meeting hosted by EC3 at Europol

EC3The 45th Meeting of EAST National Members was hosted by the European Cybercrime Centre (EC3) at Europol on 6th June 2018. National country crime updates were provided by 21 countries, and a global update by HSBC.  Topics covered included payment fraud and the evolution of payment technology, ATM malware and logical attacks, terminal related fraud attacks and ATM related physical attacks.

EC3 presented on the latest initiatives and events relating to e-commerce fraud prevention, global airport actions (GAAD) to combat online fraud involving stolen or fake credit card data to purchase plane tickets, actions relating to virtual currencies, the Europol-ASEAN Strategic Payment Card Fraud Meeting, and provided updates on Advisory Group activities relating to Internet Security, Communication Providers and Financial Services.

Presentations were also given by the EAST Payments Task Force (EPTF) and the EAST Expert Group on ATM and ATS Physical Attacks (EGAP).  An update was given by the EAST Expert Group on All Terminal Fraud (EGAF).

EAST Fraud Update 2-2018 will be produced later this month, based on the national country crime updates provided at the meeting.  EAST Fraud Updates are available on the EAST Website to EAST Members.

The 46th EAST Meeting will be held in London on 9th October 2018 and will be followed by EAST FCS Seminars on 10th October 2018 at the same venue.

ATM Malware attacks hit Europe

EAST has just published a European Payment Terminal Crime Report covering 2017 which reports that ATM malware attacks have started in Western and Central Europe. A total of 192 ATM malware and logical attacks were reported, up from 58 in 2016, a 231% increase.  189 of the attacks were logical attacks where equipment typically referred to as a ‘black box’ is used to send dispense commands directly to the ATM cash dispenser in order to cash-out the ATM.

The use of malware for cash-out was seen for the first time in Western and Central Europe with 3 such attacks reported by two countries.  Related losses were up 230%, from €0.46 million to €1.52 million.  EAST Executive Director Lachlan Gunn said, “The use of malware, such as Cutlet Maker, to cash-out ATMs has been around for some time but has not been reported in Western or Central Europe until 2017.  Early indications are that such attacks are continuing this year, although the recent related arrests announced by Europol are encouraging.  Our Expert Group on All Terminal Fraud (EGAF) is actively monitoring all malware threats to payment terminals, while our Payments Task Force (EPTF) is focusing on malware threats against the wider banking infrastructure.”

Overall payment terminal related fraud attacks fell 11% when compared with 2016 (down from 23,588 to 20,971 incidents).  This fall was mainly driven by a 23% decrease in card skimming incidents (down from 3,315 to 2,556 incidents).  This is the seventh successive year that the number of skimming incidents has fallen and the number of incidents reported in 2017 is the lowest since EAST first began gathering data in 2004.

Losses due to payment terminal related fraud attacks were up 6% when compared with 2016 (up from €332 million to €353 million).  Within these totals international skimming losses rose by 5% (up from €267 million to €280 million) and domestic skimming losses were up 21% (from €53 million to €64 million).

ATM related physical attacks rose 21% when compared with 2016 (up from 2,974 to 3,584 incidents).  Within this total ATM explosive attacks (including explosive gas and solid explosive attacks) were up 9% (up from 988 to 1,081 incidents).  Losses due to ATM related physical attacks were €31 million, a 37% drop from the €49 million reported during 2016.  Part of this decrease is due to the fact that one major ATM deploying country that used to report this data is currently unable to do so.

The average cash loss for a robbery is estimated at €16,899 per incident, the average cash loss for a ram raid or burglary attack is €12,804 and the average cash loss per explosive or gas attack is €12,591.  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)

44th EAST Meeting hosted by EKS

The 44th Meeting of EAST National Members was hosted by EURO Kartensysteme GmbH (EKS) in Frankfurt on 7th February 2018.  National country crime updates were provided by 21 countries. Topics covered included payment fraud and the evolution of payment technology, ATM malware and logical attacks, terminal related fraud attacks and ATM related physical attacks.

Presentations were given by staff from the German Federal Criminal Police Office – BKA (Bundeskriminalamt) and also by the EAST Payments Task Force (EPTF) and the EAST Expert Group on All Terminal Fraud (EGAF).  An update was given by the EAST Expert Group on ATM and ATS Physical Attacks (EGAP).

EAST Fraud Update 1-2018 will be produced later this month based on the updates provided at the meeting.  EAST Fraud Updates are available on the EAST Website to EAST Members.

EAST Publishes European Fraud Update 3-2017

Fraud UpdateEAST has published its third European Fraud Update for 2017.  This is based on country crime updates given by representatives of 15 countries in the Single Euro Payments Area (SEPA), and 5 non-SEPA countries, at the 43rd EAST meeting held in Edinburgh on 4th October 2017.

Payment fraud issues were reported by eleven countries.  One country reported that a fake P2P website was used to get funds illegally, which are then transferred to genuine cards for cash withdrawal.  Card-Not-Present (CNP) fraud shows a significant increase in fake websites, such as ticketing sites.  Data acquired through social engineering is used immediately by criminals to make fund transfers to money mule accounts.  The EAST Payments Task Force (EPTF) is looking at security issues affecting payments with a view to the gathering, collation and dissemination of related information, trends and general statistics.

ATM malware and logical security attacks were reported by seven countries.  To date in 2017 EAST has published fourteen related Fraud Alerts.  Two of the countries reported ATM related malware and all seven reported the usage (or attempted usage) of ‘black-box’ devices to allow the unauthorised dispensing of cash.  To help counter these threats Europol, supported by the EAST Expert Group on All Terminal Fraud (EGAF), has published a document entitled ‘Guidance and Recommendations regarding Logical attacks on ATMs’.  It covers mitigating the risk, setting up lines of defence and identifying and responding to logical attacks.  This is available in four languages: English, German, Italian and Spanish.

Card skimming at ATMs was reported by thirteen countries.  The usage of M3 – Card Reader Internal Skimming devices is most prevalent.  This type of device is placed at various locations inside the motorised card reader behind the shutter.  Four countries reported such attacks and, to date in 2017, EAST has published ten related Fraud Alerts.

Year to date International skimming related losses were reported in 53 countries and territories outside of the Single Euro Payments Area (SEPA) and in 10 within SEPA.  The top three locations where such losses were reported are the USA, Indonesia and India.

Skimming attacks on other terminal types were reported by eight countries and four countries reported such attacks on unattended payment terminals (UPTs) at petrol stations.

Six countries reported incidents of Transaction Reversal Fraud (TRF).  One country reported a continued increase in such attacks and two countries reported a new modus-operandi.

Ram raids and ATM burglary were reported by ten countries and eight countries reported explosive gas attacks.  To date in 2017 EAST has published eleven related ATM physical attack alerts.  The use of solid explosives continues to spread and six countries reported such attacks.  This is of increasing concern to the industry due to the risk to life and to the significant amount of collateral damage to equipment and buildings.

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