With card skimming, shimming and jackpotting on the rise, there seems to be no shortage of ways for fraudsters to rip off credit union members. Fraud is most rampant in the places where members frequently use their cards, such as the ATM or the gas station. Martin Bally, vice president and chief security officer at Diebold Nixdorf, told CNBC that ATM skimming is a $2+ billion problem globally. Inspectors in Florida reported card skimming has occurred at over 1,000 gas pumps so far this year, with that number expected to rise.
Despite this, cards are still a preferred method of payment and withdrawing cash for many members, which means credit unions must be vigilant about card security. Thankfully, many credit unions have already made fraud and card security a top priority and are proactively finding ways to minimize risk for members. (Learn about the latest CO-OP ATM enhancements for security and convenience at our upcoming webinar)
Here are 5 stories that tell the story of card security in the modern age, and what you should know to keep your members safe:
From Card Skimming to Shimming: EMV Is the New Target
Card issuers and consumers alike have been breathing a sigh of relief as EMV chip cards have become the counterfeit-resistant norm. But a new threat is emerging. “Shimming” does for EMV cards what card skimming devices do with magnetic stripes. These paper-thin devices are attached to card readers, where they are very hard to detect. Once in place, they capture information from the card’s EMV chip, enabling thieves to create counterfeit cards.
Will Skimming at the Pump Inspire Mobile Gas App Usage?
Mobile is becoming an increasingly popular way for consumers to realize cost-savings and rewards at the gas pump. Mobile payments could also help prevent against card skimming and the lack of EMV capability at the gas pump. But, ironically, 47 percent of 10,000 consumers surveyed by GasBuddy and PYMNTS said they don’t use mobile apps to pay for gas because they’re afraid mobile payments are not secure.
Is Your ATM Security Covering All the Bases?
Whether to protect your members from theft or your ATM machines from fraudsters, creating a secure environment around your ATMs is an important line of defense. These tips, from a report published by the Los Angeles Police Department, will help clarify steps you can take to maintain greater security.
6 Tips to Help Avoid Card Skimming at ATMs While Traveling
Most consumers are wary of the dreaded ATM skimming scenarios that are often featured on the local evening news but few realize that there are so many easy options for conducting a safer ATM transaction. This recent Forbes article applies common safety sense with six useful tips that any consumer can deploy.
Introducing Cardless Cash at the ATM
One way of bypassing card skimmers and shimmers is to avoid using a card at all. That’s just one rationale behind Cardless Cash Access – a new solution CO-OP is rolling out to make the ATM experience more convenient and mobile-friendly, as well as potentially more secure.