National & Global Fraud Intelligence sharing – 5th Interim EAST Meeting

The fifth Interim Meeting of EAST National and Global Members took place on Wednesday 6th October 2021. Due to the Covid-19 situation, it was conducted as a virtual meeting. The meeting was chaired by Veronica Borgogna from AXEPTA BNP Paribas.  The key focus was on the sharing of global, regional, and national, payment and terminal fraud intelligence.

Law enforcement overviews were provided by Europol, the Gulf Cooperation Council Police (GCCPOL), the United States Secret Service (USSS) and INTERPOL.  Two presentations were made by Europol: one from the European Cybercrime Centre (EC3) covered recent successful cross-border operations; the other covered Physical ATM attacks across Europe.  The GCCPOL presentation covered payment and fraud issues seen by their 6 member countries focussing on Technological Fraud (crimes committed using different forms/types of machines and technology) and Non-Technological Fraud (conducted directly against the victim). The USSS presentation covered Covid-19 pandemic relief fraud and the INTERPOL presentation covered recent issues relating to financial crimes in the LATAM region.

Private sector fraud intelligence updates were received from 28 countries, either directly or via regional/global updates by Citi, HSBC and Worldline.  Regional Updates were also provided for ASP, MENA and LATAM. Each update covered Fraud Types, Fraud Origin, Due Diligence and Physical Attacks (ATM, ATS and CIT).  The importance of raising consumer awareness to counter the rising threats related to social engineering remains a key issue.

EAST Fraud Update 3-2021 will be produced early next month, based on the country updates provided at the Interim EAST Meeting.  EAST Fraud, Payment and Physical Attack Updates are available on the EAST Intranet to EAST Members.

The next meeting of this group, scheduled for 9th February 2022, will hopefully be the 1st EAST Global Congress, which is planned as Hybrid Meeting.  This is dependant on the prevailing status of the Covid-19 pandemic and the meeting will revert to a virtual Interim Meeting if required.

ATM Explosive Attacks fall in Europe

EAST has published a European Payment Terminal Crime Report covering the first 6 months of 2021 which shows a significant fall in ATM explosive attacks.

While overall ATM related physical attacks were up 2% (from 1,829 to 1,873 incidents), mainly driven by a rise in vandalism, ATM explosive attacks (including explosive gas and solid explosive attacks) were down 52% (from 505 to 241 incidents).  Attacks due to ram raids and ATM burglary were down 42% (from 405 to 234 incidents).  Losses due to ATM related physical attacks were €4.9 million, a 61% decrease from the €12.6 million reported during the same period in 2020.  35% of these losses were due to explosive attacks, which were down 58% from €7.6 million to €3.2 million.

EAST Executive Director Lachlan Gunn said, “The first 6 months of this year have been influenced by the Covid-19 pandemic, although travel restrictions have eased across Europe. This significant fall in explosive attacks at ATMs is welcome news for all of us, given the destructive nature of such attacks and the resultant risks to life and property. However, the prize remains an attractive option for criminals and the average cash loss per successful solid explosive attack is now estimated at €40,877. To address the issue our EGAP expert group has worked closely with Europol and other Law Enforcement Agencies, and all parties remain vigilant to the threat.”

ATM malware and logical attacks against ATMs were down 74% (from 129 to 33) and all but one of the reported attacks were Black Box attacks. A Black Box attack is the connection of an unauthorised device which sends dispense commands directly to the ATM cash dispenser, to ‘cash-out’ or ‘jackpot’ the ATM. Related losses were down 37% from €1.0 to €0.63 million. Most such attacks remain unsuccessful.

Terminal related fraud attacks were down 24% (from 3,631 to 2,775 incidents). Card skimming fell to another all-time low (down from 321 to 279 incidents) and transaction reversal fraud (TRF) at ATMs decreased by 100% (down from 108 to zero incidents). Total losses of €102 million were reported, down 6% from the €109 million reported during the same period in 2020. Most losses remain international issuer losses due to card skimming, which were €86 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 EGAF holds 23rd Meeting

The 23rd Meeting of the EAST Expert Group on All Terminal Fraud (EGAF) took place on Wednesday 12th May 2021.  Due to the Covid-19 situation, it was conducted as a virtual meeting and was chaired by Otto de Jong of ING Bank.

The meeting was attended by 28 key representatives from Terminal Deployers, Terminal Vendors, Networks, Card Schemes, Security Equipment and Software Vendors, Law Enforcement and Forensic Analysts.

EAST EGAF, which meets three times a year in advance of each of the meetings of EAST National and Global Members, enables in-depth and technical discussion to take place on Logical and Malware attacks, Card Data Compromise and other issues relating to terminal fraud.

Presentations were made by EuropolINTERPOL, Swedish Police, Damage Control Mexico, and Diebold Nixdorf.

Experts from the following organisations also contributed to the meeting:  Bits A/S, BVK, Cennox, GMV, Mastercard, NatWest Group, NCR, PSA, KAL, Santander Bank, TietoEVRY, TMD Security, and TrendMicro.

The meeting approved a list of recommended Countermeasures against ATM Malware and Black Box attacks, which will be shown, as applicable, in future EAST Fraud Alerts.

EAST EGAF generates EAST Fraud Alerts for all EAST Members (National, Global and Associate). In total 260 EAST Fraud Alerts have been issued as can be seen in the table below.

EAST presents at the ATEFI Security Committee 2021

EAST Development Director Rui Carvalho presented at the ATEFI Security Committee on 30th April 2021, a virtual event.  The impact of the Covid-19 pandemic has made it more important than ever for the sharing of threat intelligence to strengthen security strategies in Electronic Payments.  The event focussed on both physical and cyber security.  Rui shared key information and statistics from the latest EAST Payment Terminal Crime Report, as well as insights from the 9th Meeting of the EAST Payments Task Force (EPTF) held on 14th April 2021.  He covered:

  • ATM Malware & Logical Attacks
  • Terminal Related Fraud
  • ATM Physical Attacks
  • Payment Fraud (social engineering, ransomware, e-skimming)

The event was attended by public officials, law enforcement agencies, regulatory entities, representatives of international organisations, Managers and Network Security Officials, ATEFI Members from the entire LATAM region and Spain, as well as bank officials, representatives of the Latin American Bank Associations, Credit and Debit Card executives, and specialised media.

ATEFI is the Latin American Association of Operators Electronic Funds Transfer and Information Services and represents 20 ATM networks in 14 countries throughout Latin America.

In May 2016 EAST and ATEFI joined forces in order to further strengthen cross border cooperation in combating all types of payment crime including payment card fraud, hi-tech crime and ATM cyber and physical attacks.

EAST EGAF holds 22nd Meeting

The 22nd Meeting of the EAST Expert Group on All Terminal Fraud (EGAF) took place on Wednesday 20th January 2021.  Due to the Covid-19 situation, it was conducted as a virtual meeting and was chaired by Otto de Jong of ING Bank.

The meeting was attended by 29 key representatives from Terminal Deployers, Terminal Vendors, Networks, Card Schemes, Security Equipment and Software Vendors, Law Enforcement and Forensic Analysts.

EAST EGAF, which meets three times a year in advance of each of the meetings of EAST National and Global Members, enables in-depth and technical discussion to take place on Logical and Malware attacks, Card Data Compromise and other issues relating to terminal fraud.

Presentations were made by EuropolINTERPOL, BKA, Diebold Nixdorf, Fiducia & GAD, and the MCMA.

Experts from the following organisations also contributed to the meeting:  AXEPTA – BNP Paribas, Bits A/S, BVK, Cardtronics, Cennox,  Damage Control, Dutch Payments Association, Group-IB, GMV, Mastercard, NatWest Group, NCR, PSA, KAL, TietoEVRY, TMD Security, and TrendMicro.

In addition EAST EGAF generates EAST Fraud Alerts for all EAST Members (National, Global and Associate). In total 256 EAST Fraud Alerts have been issued as can be seen in the table below.

EAST EGAF holds 21st Meeting

The 21st Meeting of the EAST Expert Group on All Terminal Fraud (EGAF) took place on Wednesday 16th September 2020.  Due to the Covid-19 situation, it was conducted as a virtual meeting and was chaired by Otto de Jong of ING Bank.

The meeting was attended by 28 key representatives from Terminal Deployers, Terminal Vendors, Networks, Card Schemes, Security Equipment and Software Vendors, Law Enforcement and Forensic Analysts.

EAST EGAF, 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 (TRF).

Presentations were made by Europol, INTERPOL, Damage Control, Diebold Nixdorf, Group-IB, KAL, Mastercard and NCR.

Experts from the following organisations also contributed to the meeting:  Bits A/S, Cardtronics, Cennox,  Dutch Payments Association, Fiducia & GAD, GMV, NatWest Group, TietoEVRY, TMD Security, TrendMicro.

An increasing number of TRF incidents are being reported and, to help mitigate the risk, EAST EGAF has produced a general Security Alert about the threat, which was ratified by the meeting.

In addition EAST EGAF generates EAST Fraud Alerts for all EAST Members (National, Global and Associate). In total 247 EAST Fraud Alerts have been issued, 22 to date in 2020. Since 2013 there have been 15 Fraud Alerts issued relating to TRF.

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)

50th EAST Meeting hosted by PSA in Vienna

The 50th EAST Meeting (National Members) was hosted by Payment Services Austria (PSA) in Vienna on 12th February 2020. The meeting was chaired by Martine Hemmerijckx of Worldline NV/SA, who co-founded EAST with Lachlan Gunn, EAST Executive Director, in 2004.

This was a milestone meeting and the last in the current format as, in June 2020, EAST will hold its 1st Global Congress.  In recognition of her work in founding and supporting EAST, and on behalf of the EAST Board and members, Lachlan presented Martine with an award.

National country crime updates were provided by 20 countries, and a global update by HSBC.  Topics covered included payment fraud and the continuing evolution of payment technology and related threats, terminal related fraud attacks, malware and logical attacks, and ATM related physical attacks.

The Criminal Intelligence Service Austria presented on the prevention of e-commerce fraud.  The European Cybercrime Centre (EC3) at Europol gave a presentation on forthcoming Europol activities for 2020, with a specific focus on Carding Action Week (CAW) .  This was followed by a presentation from the Gulf Cooperation Council Police (GCCPOL) that gave an update on payment and fraud issues seen by their 6 member countries.

Presentations were also given 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 1-2020 will be produced later this month, based on the national country crime updates provided at the 50th EAST Meeting.  EAST Fraud Updates are available on the EAST Website to EAST Members.

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 FCS Terminal Fraud Seminar 2019

terminal fraud

An EAST FCS Terminal Fraud Seminar was held on 9th October 2019 in London, co-located with RBRs ATM & Cyber Security 2019 Conference. The interactive event followed the basic structure of work group meetings held by the EAST Expert Group on All Terminal Fraud (EGAF). This group, which meets three times a year, provides a platform for law enforcement and private sector experts to come together and share fraud information, trends and statistics in a structured manner.

terminal fraudAn introduction to EGAF by the Chair, Otto de Jong, was followed by a presentation by EAST Development Director Rui Carvalho, covering the latest EAST terminal fraud statistics from the H1 2019 European Payment Terminal Crime Report.  Tobias Wieloch of Europol then gave a high level view of the terminal fraud attack situation across Europe which was followed by threat assessments from around Europe:

  • NORTH – Nordics – Arnt Olav Rottereng – Evry
  • SOUTH – Italy – Veronica Borgogna – Bancomat SpA
  • EAST – Russia – Nikolai Dosh – Mastercard Members Association (MCMA)
  • WEST – UK – Ben Birtwistle – NatWest Bank Plc

terminal fraudThese were followed by an overview and demonstration of the Checkcard Software by Tobias Heckmann from the University of Applied Sciences in Bingen, Germany. This has been developed as an investigation tool to validate whether or not a smart card is genuine. The check is done off-line, either using software on a desktop or on an android phone.

terminal fraudThe event concluded with an update on logical security – Otto de Jong covered black box attacks and Terence Devereux of Diebold Nixdorf spoke about ATM malware attacks.

Attendance at the regular EAST EGAF work group meetings is limited and this event enabled active participation and input from a much wider pool of expertise.

More information on the event can be found on the EAST Events Website