New EAST Fraud Definitions now available in Russian

EAST Terminal Fraud Definitions are now available in the Russian language.  At the end of 2018 EAST upgraded its Terminal Fraud Definitions to illustrate what the criminal target outcome is for each fraud type.  In the upgraded definitions each applicable criminal benefit is highlighted next to each terminal fraud type.

The translation was carried out by two EAST National Member organisations – the Ukrainian Interbank Payment Systems Member Association “EMA”  and the MasterCard Members Association (MCMA).

These fraud definitions are used by EAST when issuing Fraud Alerts, or when compiling the statistics and other information for European Payment Terminal Reports and Fraud Updates.  The aim is for these Terminal Fraud Definitions, as well as the related criminal benefits, to be adopted globally when describing or reporting payment terminal fraud.  This translation into Russian is another step forward towards achieving this.

Below is the  definition for Card Skimming in the Russian language.

The definitions have been classified ‘WHITE’ under the terms of the EAST Information Security Policy and may be shared freely, subject to standard copyright rules.

EAST Upgrades Terminal Fraud Definitions

EAST has upgraded its Terminal Fraud Definitions to illustrate what the criminal target outcome is for each fraud type.  This information is now available on the EAST website.

The EAST Expert Group on All Terminal Fraud (EGAF) has identified six ways by which criminals achieve their targets from the different terminal fraud types as shown below:

In the upgraded Terminal Fraud Definitions each applicable criminal benefit is highlighted next to each terminal fraud type.  The defined Terminal Fraud Types are: Card Skimming; Card Shimming; Eavesdropping; Card Trapping; Cash Trapping; Transaction Reversal Fraud (TRF); Malware; and Black Box.

Below is the definition for Card Skimming which highlights that skimming enables criminals to: Create counterfeit cards; make card-not-present (CNP) purchases; use fake cards in-store; and sell compromised data.

fraud definitions - card skimming

EAST Executive Director Lachlan Gunn said “This is a major step forward in standardising the classification of terminal fraud, which will hopefully help to continue to drive down related fraud losses. The EGAF Chair, Otto de Jong, and his team have produced something fresh and simple which we hope will be adopted globally by the Industry and Law enforcement when describing or reporting terminal fraud. In particular we would like to thank Ben Birtwistle of NatWest Bank plc, along with Claire Shufflebotham and Niek Westendorp of TMD Security, whose creative ideas and design made this latest upgrade possible.”

A summary of the upgraded fraud definitions and terminology is available on the EAST website along with a more detailed document for download.  These have been classified ‘WHITE’ under the terms of the EAST Information Security Policy and may be shared freely, subject to standard copyright rules.

EAST Presents at CyberSouth Event

CyberSouthEAST Executive Director Lachlan Gunn presented at a CyberSouth Regional Workshop on Business Email Compromise (CEO Fraud) and Electronic Payment Fraud on 13 November 2018 . The event, which ran from 12-14 November 2018, was held at the Directorate for Investigating Organised Crime and Terrorism (DIICOT) in Bucharest, Romania and was implemented by the Council of Europe.  The CyberSouth project focuses on cooperation on cybercrime in the Southern Neighbourhood and aims at reinforcing the capacities of specialised units with responsibilities relating to tackling cybercrime and dealing with electronic evidence.

The workshop focused on increasing the knowledge of the participants on the different trends and typologies of online fraud and of electronic payment fraud in order to assist with strengthening the capacity of the criminal justice authorities in the CyberSouth countries to search for, seize, and confiscate the illicit proceeds of cyber-criminals in the target areas.  Cybercrime investigators and prosecutors from the following Southern Neighbourhood priority area countries attended the event: Algeria; Jordan; Lebanon; Morocco; Tunisia.

National representatives were also present from Germany, Israel, Romania and the USA.  Europol and Eurojust were present and the private sector was represented by American Express, BIT Defender and EAST.

The EAST presentation covered the structure and methodology used by EAST to help improve public/private sector cross-border cooperation in the fight against organised cross-border crime, and then shared information on the latest statistics and trends relating to logical (black box) attacks against ATMs, and also on malware used to enable jackpotting (cash out) at ATM locations.  The latest fraud definitions produced by EAST were also shared and it was advised that an updated version of these will soon be available.  These definitions are aimed at helping law enforcement agencies, private sector fraud investigators and other stakeholders to standardise reporting terminology when following up on incidents.

The Cybercrime Programme Office of the Council of Europe (C-PROC), based in Bucharest, is responsible for assisting countries worldwide in the strengthening of their criminal justice capacity to respond to to the challenges posed by cybercrime and electronic evidence on the basis of the standards of the Budapest Convention of Cybercrime.  This is the only binding international instrument on this issue and serves as a guideline for any country developing comprehensive national legislation against Cybercrime and as a framework for international cooperation between State Parties to The Convention on Cybercrime of the Council of Europe (CETS No.185).

 

EAST Publishes European Fraud Update 3-2018

European FraudEAST has published its third European Fraud Update for 2018. This is based on country crime updates given by representatives of 15 countries in the Single Euro Payments Area (SEPA), and 3 non-SEPA countries, at the 46th EAST meeting held in London on 9th October 2018.

Payment fraud issues were reported by fourteen countries. Seven countries reported card-not-present (CNP) as a key fraud driver. One country reported merchant manipulation of settlement files to force through authorisations on POS terminals – once the forced transaction is through on a card the merchant cashes out using it. One country reported malware related to two APT attacks – some Chinese criminals are under observation in connection with them. Another country reported impersonation fraud relating to bill payments – possibly involving collusive postal workers. To date in 2018 the EAST Payments Task Force (EPTF) has published six Payment Alerts covering phishing, malware on mobile phones, fraudulent mobile Apps, CNP fraud and Technological fraud. The EPTF has recently published payment terminology and definitions.

ATM malware and logical security attacks were reported by seven countries.  Four of the countries reported ATM related malware and six countries reported the usage (or attempted usage) of ‘black-box’ devices to allow the unauthorised dispensing of cash.  To date in 2018 the EAST Expert Group on All Terminal Fraud (EGAF) has published eleven related Fraud Alerts.

Card skimming at ATMs was reported by fourteen countries.  The overall trend is downward, as the recently published EAST European Payment Terminal Crime Report covering January to June 2018 highlights.  The usage of M3 – Card Reader Internal Skimming devices was reported by four countries and one country reported the use of M2 – Throat Inlay Skimming Devices.  Skimming attacks on other terminal types were reported by five countries, three of which reported such attacks on unattended payment terminals (UPTs) at petrol stations.  One country reported that a series of shimming devices at POS terminals had been detected and taken down.  To date in 2018 EAST EGAF has published twelve related Fraud Alerts.

Year to date International skimming related losses were reported in 44 countries and territories outside SEPA and in 6 within SEPA.  The top three locations where such losses were reported remain Indonesia, the USA and India.

Six countries reported incidents of Transaction Reversal Fraud (TRF), one of which reported a new attack variant where the criminals use a ‘chip-on-a-strip’.  To date in 2018 EAST EGAF has published five related Fraud Alerts.

Ram raids and ATM burglary were reported by eight countries and eight countries reported explosive gas attacks, one of which reported that two people had been sent to hospital due to related smoke inhalation.  Five countries reported solid explosive attacks.  The spread of such attacks has long been of great concern to the industry due to the risk to life and to the significant amount of collateral damage to equipment and buildings.  One such attack resulted in the death of a person, the first time that this has been reported.  To date in 2018 the EAST Expert Group on ATM & ATS Physical Attacks (EGAP) has published seven related Physical Attack Alerts.

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

EAST Publishes European Fraud Update 1-2018

EAST Fraud Update 1-2018EAST has just published its first European Fraud Update for 2018.  This is based on country crime updates given by representatives of 18 countries in the Single Euro Payments Area (SEPA), and 4 non-SEPA countries, at the 44th EAST meeting held in Frankfurt on 7th February 2018.

Payment fraud issues were reported by fifteen countries.  Seven countries reported increases in card-not-present (CNP) fraud related to ecommerce merchants in China.  Phishing activity was reported by four countries and one of them reported phishing attacks through advertisements placed on social media sites.  The EAST Payments Task Force (EPTF) issued a first Payment Alert in January 2018.  This covered a phishing email sent to employees of banking and financial institutions, which contained malware intended to exploit the local network and gain access to Swift services.

ATM malware and logical security attacks were reported by ten countries.  Five of the countries reported ATM related malware and one country reported the first successful Cutlet Maker cash-out attack in Western Europe.  To date in 2018 the EAST Expert Group on All Terminal Fraud (EGAF) has published two related Fraud Alerts.  Seven countries 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 EAST 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 sixteen 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.  Five countries reported such attacks.  Skimming attacks on other terminal types were reported by five countries, all of which reported such attacks on unattended payment terminals (UPTs) at petrol stations.  One country also reported the use of card shimming devices at POS terminals.  To date in 2018 EAST EGAF has published three related Fraud Alerts.

Year to date International skimming related losses were reported in 40 countries and territories outside SEPA and in 7 within SEPA.  The top three locations where such losses were reported remain the USA, Indonesia and India.

Five countries reported incidents of Transaction Reversal Fraud (TRF).  Two countries reported a continued increase in such attacks and two countries reported new modus-operandi.  To date in 2018 EAST EGAF has published two related Fraud Alerts.

Ram raids and ATM burglary were reported by ten countries and, to date in 2018, the EAST Expert Group on ATM & ATS Physical Attacks (EGAP) has published one related ATM Physical Attack Alert.  Eight countries reported explosive gas attacks and six countries reported solid explosive attacks.  The spread of such attacks 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).

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).

Viewpoint: Poll indicates malware and black box attacks are biggest fraud risk to the ATM channel

In a website research poll that ran from May to August 2017 participants were asked how they saw fraud risk developing for ATMs. 67% of respondents felt that malware and black box attacks were the biggest risk, 20% went for card skimming, 7% chose social engineering, and cash trapping and card trapping were each chosen by 3%. The poll results can be seen in the chart below.

black box

This poll result is in line with EAST’s published European ATM fraud statistics, with reports that date back to 2004.  Over the past thirteen years we have seen fraud trends change, particularly since the EMV (Chip and PIN) roll out commenced.  Most recently we have seen an increase in black box attacks, as highlighted in an ATM Crime Report published by EAST in April 2017 and covering the full year 2016.

The current website research poll, which closes at the end of December, is on Payment Fraud and asks if you have experienced losses due to payment fraud over the past two years, how long did it take to get reimbursed?  To take it, and to see all past results, visit the Payment and Terminal Research page on this website.

EAST Fraud Alerts

To date 155 EAST Fraud Alerts have been issued by 25 countries.  EAST first started issuing such Alerts in September 2013.  These Alerts provide valuable and timely intelligence to law enforcement agencies and the industry, allowing the spread of emerging threats and criminal methodologies to be tracked across the world.  While most of the Alerts have been issued by countries within the Single Euro Payments Area (SEPA), there have been some from Belarus, Mexico, Russia, Serbia, Turkey, Ukraine and the United States.

To date EAST Fraud Alerts issued have covered:  ATM Malware / Black Box attacks (cash out / jackpotting); Card Shimming; Card Skimming (highlighting the spread of different devices such as M1, M2 and M3); Card Trapping; Cash Trapping; Eavesdropping (highlighting the use of different MOs such as E2 and E3); EMV Shock Cards; Transaction Reversal Fraud; and Vandalism.  The table below shows a summary the Alerts issued:

EAST Fraud Alerts

The EAST Expert Group on All Terminal Fraud (EGAF) initiated the Alerts and conducts in-depth analysis of some of the emerging threats and devices.  Each Alert covers: the type of fraud; the country where discovered; the ATM type(s) affected; an indication as to whether or not the fraud was successful; a description of the device and the criminal MO; indication as the device location; information on PIN compromise (if card skimming or card trapping); and any available images.

The Alerts are restricted documents and are issued to to EAST Members (National and Associate) for their internal usage.

Definitions of the different fraud types and related terminology are available on this website.

EAST Publishes European Fraud Update 2-2017

EAST has published its second European Fraud Update for 2017.  This is based on country crime updates given by representatives of 21 countries in the Single Euro Payments Area (SEPA), and 5 non-SEPA countries, at the 42nd EAST meeting held at Europol on 7th June 2017.

Payment fraud issues were reported by ten countries.  One country reported a new fraud type where the card Primary Account Number (PAN) is compromised in China, leading to fraud in China.  In these cases the CPP is sometimes detected, but most of the time it is not.  Another country reported data compromise due ‘vishing’ attacks (voice phishing), ‘phishing’ websites and ‘SMiShing’ (SMS phishing).  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 fifteen countries.  To date in 2017 EAST has published ten related Fraud Alerts.  Two of the countries reported ATM malware and fourteen reported the usage (or attempted usage) of ‘black-box’ devices to allow the unauthorised dispensing of cash.  Five countries reported ‘black box’ attacks for the first time, further indication that this attack type is continuing to spread.  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 nineteen countries.  The usage of M3 – Card Reader Internal Skimming devices continues to spread.  This type of device is placed at various locations inside the motorised card reader behind the shutter.  Nine countries reported such attacks and, to date in 2017, EAST has published six related Fraud Alerts.

International skimming related losses were reported in 49 countries and territories outside of the Single Euro Payments Area (SEPA) and in 9 within SEPA.  The top three locations where such losses were reported are the USA, Indonesia and the Philippines.

Skimming attacks on other terminal types were reported by ten countries and five countries reported such attacks on unattended payment terminals (UPTs) at petrol stations.  Two countries reported the usage of card reader internal shimming devices at POS terminals.

Eight countries reported incidents of Transaction Reversal Fraud (TRF).  One country reported a significant increase in such attacks and two countries reported such attacks for the first time.

Ram raids and ATM burglary were reported by nine countries and nine countries reported explosive gas attacks.  To date in 2017 EAST has published nine 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).

Countering ATM Black Box attacks

black boxBlack box attacks on ATMs are a form of logical attack.  To perform these ‘cash-out’ or ‘jackpotting’ attacks the criminals connect an unauthorised device (typically an unknown box or laptop) to an ATM.  This device then sends dispense commands directly to the ATM cash dispenser in order to get it to spit out banknotes.  In order to physically connect such a device the criminals gain access to the ATM’s Top Box by either drilling or melting holes.

The latest statistics published by EAST show that, while the number of black box attacks in Europe is increasing, related losses have fallen when comparing 2016 with 2015.  This drop can be partly attributed to the recent arrests by law enforcement agencies across Europe (in an operation supported by EC3, Europol’s European Cybercrime Centre) and partly to actions taken by the industry to counter such attacks.  The first black box attacks in the Czech Republic took place in August 2016 and three arrests were subsequently made there by the Police.  The industry also took actions to counter such attacks and, at the upcoming EAST Financial Crime & Security Forum (EAST FCS 2017), Petr Ullmann from NCR in the Czech Republic will give an update on the actions taken.

About Petr Ullmann

After graduating in 2007 Petr Ullmann started his career as an IT and network administrator in the automotive industry and went on to work for various Czech companies in IT administration and project management roles.  His key area of expertise was Enterprise Resource Planning (ERP) software – business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services and human resources.

In 2011 he joined NCR Česká republika, initially working as a member of a team working on a project for Tesco Plc in Central Europe.  Since then he has worked on several specific projects for NCR customers (banks and financial institutions) including the migration to Windows 7 and implementation of McAfee ePO.

Who Is Attending?

Over 150 delegates will attend EAST FCS 2017 from ATM networks, banks, law enforcement, vendors, and EAST national and associate members.

Book soon to ensure you don’t miss this great opportunity to attend what has been described as an “excellent event for helping to make a difference in the area of financial crime prevention”.

There are some sponsorship slots still available so, if you are in the business of ATM crime and fraud prevention and wish to showcase your brand to a key audience, contact us.