The Future of ATMs

EAST Executive Director Lachlan Gunn presented at a webinar on the ‘Future of ATMs’ organised by The South African Banking Risk Information Centre (SABRIC) on Friday 26th June 2020.  SABRIC is the EAST National Member for South Africa.  The webinar was chaired by Mr Ronnie Zonke of SABRIC and was attended by representatives of the banking and financial sector in South Africa.

The EAST presentation, entitled ‘ATMs in Europe’ covered:

  • European ATM Deployment
  • European ATM Crime Overview (Pre COVID-19)
  • Latest ATM Crime Trends
  • The future for ATMs

This was followed by a presentation by Mike Lee, CEO of ATMIA, covering what is a Next Gen ATM and why it is so important to the future of financial services, and one by Patrick Johnson, Deputy Head Currency for Currency Management at the South African Reserve Bank, entitled ‘The Future of ATM’s in a time of crisis’ and covering:

  • What are the current banknote growth trends and the impact this will have on ATM’s?
  • How important have ATM’s been during COVID-19 and what happened during lockdown?
  • What will the future of ATM’s hold in an uncertain future?

How COVID-19 will impact Organised Crime in the EU

COVID-19Europol has just published a new report which assesses the impact of the COVID-19 pandemic on serious and organised crime across three phases:

  1. The Current Situation
  2. The Mid-Term Outlook
  3. The Long Term Impact

For more on the current situation see Europol’s previous reports published in March and April 2020.

During the medium term easing of lockdown measures will see criminal activity return to previous levels featuring the same type of activities as before the pandemic. However, the COVID-19 pandemic is likely to have created new opportunities for criminal activities that will be exploited beyond the end of the current crisis. It is expected that the economic impact of the pandemic and the activities of those seeking to exploit it will only start to become apparent in the mid-term phase and will likely not fully manifest until the longer term. Some of the relevant crime areas are:

  • Anti-money laundering: the pandemic and its economic fallout will exert significant pressure on the financial system and the banking sector. Anti-money laundering regulators must be vigilant and should expect attempts by organised crime groups to exploit a volatile economic situation to launder money using the on-shore financial system.
  • Shell companies: criminals will likely intensify their use of shell companies and companies based in off-shore jurisdictions with weak anti-money laundering policies at the placement stage to receive cash deposits that are later transferred to other jurisdictions.
  • The real estate and construction sectors will become even more attractive for money laundering both in terms of investment and as a justification for the movement of funds.
  • Migrant smuggling: While the economic impact of the COVID-19 crisis in Europe is not yet clear, it is expected that the impact on economies in the developing world is likely to be even more profound. Prolonged economic instability and the sustained lack of opportunities in some African economies may trigger another wave of irregular migration towards the EU in the mid-term.

Looking longer term some predictions are:

  • Organised crime is highly adaptable and has demonstrated the ability to extract long-term gains from crises, such as the end of the cold war or the global economic of 2007 and 2008.
  • Communities, especially vulnerable groups, tend to become more accessible to organised crime during times of crisis. Economic hardship makes communities more receptive to certain offers, such as cheaper counterfeit goods or recruitment to engage in criminal activity.
  • Mafia-type organised crime groups are likely to take advantage of a crisis and persistent economic hardship by recruiting vulnerable young people, engaging in loan-sharking, extortion and racketeering.
  • Organised crime does not occur in isolation and the state of the wider economy plays a key role. A crisis often results in changes in consumer demand for types of goods and services. This will lead to shifts in criminal markets.

Key factors with an impact on crime during and after the COVID-19 pandemic

Several factors have a significant impact on serious and organised crime during the COVID-19 pandemic. These factors shape criminal behaviour and create vulnerabilities. Based on experience gained during prior crises, it is essential to monitor these factors to anticipate developments and pick up on warning signals.

  • Online activities: more people are spending more time online throughout the day for work and leisure during the pandemic, which has increased the attack vectors and surface to launch various types of cyber-attacks, fraud schemes and other activities targeting regular users.
  • Demand for and scarcity of certain goods, especially of healthcare products and equipment, is driving a significant portion of criminals’ activities in counterfeit and substandard goods and fraud.
  • Payment methods: the pandemic is likely to have an impact on payment preferences beyond the duration of the pandemic. With a shift of economic activity to online platforms, cashless transactions are increasing in number, volume and frequency.
  • Economic downturn: A potential economic downturn will fundamentally shape the serious and organised crime landscape. Economic disparity across Europe is making organised crime more socially acceptable as these groups will increasingly infiltrate economically weakened communities to portray themselves as providers of work and services.
  • Rising unemployment and reductions in legitimate investment may present greater opportunities for criminal groups, as individuals and organisations in the private and public sectors are rendered more vulnerable to compromise. Increased social tolerance for counterfeit goods and labour exploitation has the potential to result in unfair competition, higher levels of organised crime infiltration and, ultimately, illicit activity accounting for a larger share of GDP.

To download a full copy of the report visit Europol’s website.

An earlier post on this website covers advice on Cybersecurity awareness during the COVID-19 pandemic

EPTF holds Seventh Meeting

EPTFThe Seventh Meeting of the EAST Payments Task Force (EPTF) took place on Wednesday 15th April 2020.  Due to the Covid-19 situation it was conducted as a virtual meeting and 16 EPTF members participated.

The EPTF is a specialist task force that discusses security issues affecting the payments industry and that gathers, collates and disseminates related information, trends and general statistics.

The meeting was chaired by Mr Rui Carvalho, EAST Development Director, and key representatives from Card Issuers, International Banks, Law Enforcement, Payment Processors and Solution Providers took part.

There was a detailed discussion on the impact of Covid-19 on fraud and updates were provided from Austria, France, Germany, the Netherlands, Norway, Portugal, Spain and the United Kingdom  Updates were also given by Europol, Group-IB and Trend Micro.

The Group, which meets twice a year, adds value to the payments industry by using the unique and extensive EAST National Member platform and Associate Member network to provide information and outputs that are not currently available elsewhere.  EAST National Members represent 35 countries and outputs from the group are presented to National Member Meetings.  There are 213 EAST Associate Member Organisations from 53 countries and territories.

COVID-19 – Cybersecurity Awareness

CybersecurityThe coronavirus outbreak is still a rising issue for many countries and related lock-downs have forced many people into teleworking – working at home, while communicating with their office by phone or email, or using the Internet.  This raises cybersecurity concerns.

Malign actors are actively exploiting these new challenging circumstances to target remote workers, businesses and individuals alike.  It is vitally important for everyone to be fully aware of the threats and to ensure that anything transacted over the Internet is done safely and securely.

To help with this awareness Europol has provided ‘Safe Teleworking Tips and Advice’ for both employees and employers, as well as tips on  ‘How To Make Your Home a Cyber Safe Stronghold’ (available for download in 13 languages).

EAST and Europol have worked together since 2004 and EAST provides secure platforms for public/private sector cooperation in the fight against organised criminal groups engaged in financial crime.  Click here for more information on EAST’s law enforcement relationships.

The EAST Payments Task Force (EPTF) has a specific focus on cybersecurity.  This Group, which meets twice a year, adds value to the payments industry by using the unique and extensive EAST National Member platform and Associate Member network to provide information and outputs that are not currently available elsewhere.