Jackpotting Comes to the U.S.
By Jon Coss, CEOFebruary 23, 2018
We’ve written several times about skimmers, devices that thieves place into gas pumps, ATMs, and other machines to steal personal and financial information from unsuspecting patrons. Now, it seems that a form of skimming, called “jackpotting” is making its way from Europe and Asia to the states.
The aptly named jackpotting, like skimming, uses a device inserted into ATM machines to take control of the CPU and dispense large amounts of cash to the fraudsters. The thieves often dress as ATM technicians and use an endoscope to view the inside of the machine and attach their system to the ATM. They can then control the system remotely and dispense as many as 120 bills per minute to “jackpotting mules” who collect the money.
The Secret Service is now issuing warnings about the spread of jackpotting, and organized criminal gangs are targeting stand-alone ATMs in pharmacies, big box retailers and drive-thru ATMs. And, of course, thanks to the anonymity of the dark web, criminals can easily purchase the software and equipment necessary to pull off the schemes.
While still in its infancy here in the states– in a recent week there were six attacks that stole just over $1 million– jackpotting is quickly establishing itself as one more fraud tactic that businesses and citizens will have to watch out for. The good news in this case is that the ATMs, when hacked, appear as out-of-order to consumers. At least we won’t insert our cards and we won’t lose our data. The bad news is that institutional losses often get passed to us in the form of higher fees and more complex processes. As usual, we all pay in the end.