Banks On Notice About New ATM-Draining Scam
(CBS) — A warning for anyone using an ATM card.
CBS 2’s Chris Martinez reports.
Twice before, Tim Laffredi has been burned. He was first hacked through an ATM skimmer and then later hit again in the Target security breach.
Now there’s word of yet another sinister scam: unlimited operation.
Fraud expert William Kresse says if you have an ATM card you are at risk.
The hack begins with an email to bank employees, delivering corrupt software to their system. And then from far away hackers change the settings of the bank’s ATM.
“This malware tells the ATM: Go ahead and disperse as much cash as the person requests. It could be thousands of dollars,” Kresse says.
Getting that money out is the next step. Using phony cards with stolen account numbers, hackers spread out to areas with lots of banks.
Within a matter of hours, they can drain the machines and get away with your money long before anyone knows it’s gone.
“You’re talking about draining millions and millions of dollars out of the economy,” Kresse says.
He says mid-sized and smaller banks are the most common targets of these hacks. But any bank is fair game.
All banks are being told to upgrade protections on their ATM controls.