FBI Warns Banks About Upcoming Global ATM Fraud Scheme

By Nitish Singh / August 13, 2018

The FBI received reports of large-scale organized crime that is scheduled for the near future. Cybercriminals will be breaking into bank accounts and payments card processors across the world and clone ATM cards to cash out money globally. The attack is said to be highly choreographed, and the activities of the attackers will increase over time.

The warnings were sent out by the FBI based on an unspecified reporting which revealed details about the global Automated Teller Machine (ATM) cash-out scheme. It is being referred to as an unlimited operation and is scheduled to go on for an extended period of time. The operations could compromise financial institutions to conduct large-scale theft. With small to medium sized institutions lacking high-end security features, enabling global operations for stealing funds from their ATMs is easier than hacking premier financial institutions.

Organized cybercrime gangs with coordinated attacks typically are able to pull off heists by phishing bank account details. Intruders usually remove fraud controls from bank accounts like withdrawal Amount limitations and the number of transactions. It allows the hackers to bypass all predefined transaction limits by the bank and quickly move any amount of money from ATM machines.

According to the FBI report “The cybercriminals typically create fraudulent copies of legitimate cards by sending stolen card data to co-conspirators who imprint the data on reusable magnetic strip cards, such as gift cards purchased at retail stores.

The FBI is urging banks to review security procedures and implementing strong password requirements along with two-factor authentication. The bureau has also requested bank administrators to use digital or physical tokens for added security when handling critical roles. An official advisory with recommended actions has been sent out by the FBI to banks, and the organization will be closely monitoring cybercrime activities against financial institutions closely in the near future.

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