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Writer's pictureDavid Montague

Expect Fraud Rings to Focus More on Skimming This Year

According to some security experts fraud resulting from card skimming will further increase in 2012 as fraud rings continue to exploit the magnetic-stripe. Robert Siciliano, a security consultant and expert, was quoted in a Bank Info Security article saying “2012 will be the Year of the Skimmer,” elaborating that skimming will be as much a problem this year as hacking and hactivism were in 2011.


The same article goes on to discuss the top skimming trends and vulnerabilities to look for in 2012. One area of top concern is skimming at the ATM, which fraud rings repeatedly target because these scams yield high payouts. A skimmer installed at a single ATM leads to $50,000 in losses on average, according to an analyst for Aite Group, and as a result from increased skimming attacks targeting ATMs fraud losses on debit cards have outpaced losses on credit cards.


Other skimming trends to watch for include fraud rings targeting retailers and a migration of more fraud to the United States from nations where Chip and PIN is already in place. Many expect fraud rings and hackers to target organizations’ networks to gain remote access to a business’ POS systems as a lower risk alternative to installing skimming hardware. More skimming attacks are expected shift to the U.S. as EMV is the standard in Canada, Mexico and Europe, but another area to keep an eye on is the initiatives for bringing EMV to the United States.


For more information: 2012: Year of the Skimmer by: Tracy Kitten, Bank Info Security

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