While data breaches and ransomware grab the headlines, we’re still seeing fraud growth due to ATM compromises in the US. The fraud growth rate has slowed down from the gangbusters surge we saw in 2015, but consumers and issuers still need to pay attention.
The latest data from the FICO® Card Alert Service, which monitors hundreds of thousands of ATMs and other readers in the US, shows a 39 percent increase in the number of cards compromised at US ATMs and merchants in the first six months of 2017, compared to the same period in 2016. The number of POS device and ATM compromises rose 21 percent in the same period.
Beyond the numbers, at FICO we have seen the rate of fraud pattern changes accelerating over the last two years. As criminals try to beat the system, we are continually adapting the predictive analytics we use to detect compromises.
This year marks the 25th anniversary of FICO’s work in AI and machine learning, which began with Falcon Fraud Manager. Ever since then, we have been in an innovation race with the bad guys. The latest figures show they’re not slowing down. Neither are we.
Tips for Consumers
- If an ATM looks odd, or your card doesn’t enter the machine smoothly, consider going somewhere else for your cash.
- Never approach an ATM if anyone is lingering nearby. Never engage in conversations with others around an ATM. Remain in your automobile until other ATM users have left the ATM.
- If your plastic card is captured inside of an ATM, call your card issuer immediately to report it. Sometimes you may think that your card was captured by the ATM when in reality it was later retrieved by a criminal who staged its capture. Either way, you will need to arrange for a replacement card as soon as possible.
- Ask your card issuer for a new card number if you suspect that your payment card may have been compromised at a merchant, restaurant or ATM. It’s important to change both your card number and your PIN whenever you experience a potential theft of your personal information.
- Check your card transactions frequently, using online banking and your monthly statement.
- Ask your card provider if they offer account alert technology that will deliver SMS text communications or emails to you in the event that fraudulent activity is suspected on your payment card.
- Update your address and cell phone information for every card you have, so that you can be reached if there is ever a critical situation that requires your immediate attention.