Don’t forget about low-tech fraud

In today’s fast-paced world of electronic crime and scams, we often focus on large-scale card fraud attacks, perpetrated by criminals who employ sophisticated technology to steal large amounts of personal and financial data.  These thieves are highly proficient at exploiting technology that allows them to reap sizeable financial rewards while maintaining the lowest risk of detection, arrest and prosecution. 

But let’s not forget that card fraud perpetrated by low-tech methods remains a big concern, particularly with the downturn of the US economy.  The very low-tech physical removal of an ATM from its foundation (aka “ram raids”) is the second-largest threat to ATM security after card skimming.  Low-tech financial crimes are, of course, characterized by largely unsophisticated technology usage, employing techniques like ATM vestibule skimming or poorly executed ATM thefts.  While each breach tends to affect fewer consumers and financial institutions than high-tech methods, the frequency of low-tech crimes means you can’t let down your guard.

Regardless of the fraudster’s sophistication level, the victims are still financial institutions and their customers.  To fight back, banks must employ a two-fisted approach, on the one hand proactively using analytics to prevent as much fraud as possible before losses occur, and on the other, employing reactive strategies to quickly detect and shut down breaches.