Terminal fraud attacks increase in Europe

terminal fraudEAST 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

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).

EAST EGAF holds 20th Meeting in Amsterdam

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.

EAST Fraud Definitions now available in Portuguese

EAST Terminal Fraud Definitions are now available in the Portuguese 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 SIBS, the EAST National Member for Portugal.

These 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 definitions, as well as the related criminal benefits, to be adopted globally when describing or reporting payment terminal fraud.  This translation into Portuguese is another step forward towards achieving this.

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

fraud

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 Publishes European Fraud Update 3-2019

European FraudEAST 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

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

EAST EGAFThe 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.

EAST Publishes European Fraud Update 2-2019

FraudEAST has published its second 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 48th EAST meeting held at Europol in The Hague on 5th June 2019.

Payment fraud issues were reported by 18 countries. To date in 2019 the EAST Payments Task Force (EPTF) has issued 4 related Payment Alerts.

Two countries reported mobile wallet fraud in relation to Apple Pay. One reported that mobile wallets are fast becoming the new money mules – fraudsters are enrolling cards that are not yet associated to a specific wallet. Another country reported that fraudsters are obtaining security codes through phishing, with which they can then install a mobile banking app on their own smartphone, using the victim’s data. One country reported that fraudsters are increasingly using mobile call centres to call customers from numbers that appear to be genuine, and then are pretending to be bank security staff. This enables them to obtain key personal information and data.

Five countries reported fake websites, mainly in China and other Asian countries – customers place orders for goods, which are never fulfilled, or for services which are never provided. One country reported that the quality of fake websites and fake emails is constantly improving, with fewer language errors and better design and formatting.

ATM malware and logical attacks were reported by 6 countries. They all reported the usage (or attempted usage) of ‘black-box’ devices to allow the unauthorised dispensing of cash. In most cases the attacks were unsuccessful. To date in 2019 the EAST Expert Group on All Terminal Fraud (EGAF) has published 5 related Fraud Alerts.

Card skimming at ATMs was reported by eighteen countries. Five countries reported the continued usage of M3 – Card Reader Internal Skimming devices. The most recent variants are made of transparent plastic. Skimming attacks on other terminal types were reported by six countries, three of which reported such attacks on railway ticket machines. To date in 2019 EAST EGAF has published 8 related Fraud Alerts.

Year to date International skimming related losses were reported in 37 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.

Eight countries reported cash trapping attacks, two of them reporting decreases in such attacks. Five countries reported card trapping attacks, two of them reporting that such attacks are increasing.

Ram raids and ATM burglary were reported by 10 countries and 9 countries reported explosive gas attacks, 4 of which reported that such attacks are increasing. Seven countries reported solid explosive attacks, two of which are seeing increases in such attacks, and one reported an attack carried out by criminals armed with assault rifles. 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 7 related Physical Attack Alerts.

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

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 EGAF holds 18th Meeting in Amsterdam

EGAFThe Eighteenth Meeting of the EAST Expert Group on All Terminal Fraud (EAST EGAF) took place on Wednesday 8th May 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 210 EAST Fraud Alerts have been issued, 9 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 now open and more information can be found on the EAST Events website.