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Hackers Charged for Stealing Over $9M From ATMs

After running an elaborate scam that netted about $9 million, eight men were indicted by a federal grand jury Tuesday for their alleged roles in a massive ATM hacking scheme. While similar heists have been pulled before, this one is impressive not only because of the large chunk of cash, but because of the sheer scope of the crime, as well.

According to Threat Post, hackers discovered a way to bypass RBS WorldPay's payroll debit card encryption system sometime last November. After doing so, they created 44 debit cards and increased the limit on each one. Within 12 hours, they had withdrawn $9 million from 2,100 ATMs in 280 different cities. Now, that's some day of work! The alleged hackers -- most of whom are from Eastern Europe -- were busted when, prosecutors say, they failed to cover their tracks on the card-processing network. RBS WorldPay noticed suspicious activity and reported it to authorities. According to a statement from the Justice Department, each of these men faces what amounts to a lifetime sentence for various counts of fraud and identity theft. Some could be given heavy fines, too.

They might not be totally dumb criminals (They did beat the encryption system.), but didn't they consider spacing out the withdrawals? Even if it is worldwide, that's a lot of money for a mere 12-hour period. [From: Threat Post and U.S. Justice Department]

Computers

Fake ATM Dupes Hackers at Hacker Expo

Don't you love that lovely twist wherein the hunter becomes the hunted?

Such was the case at the recent DefCon hackers' convention in Las Vegas, where a fake ATM was set up in the conference center of the Riviera Hotel Casino in order to steal account information from any gullible hackers who might cross it. Apparently, there were at least a few of them. (As of yet, no reports stating the exact number of victims have emerged.)

It's unclear how long the ATM was there, or whether or not it was an inside job perpetrated by one of the conference attendees. Witnesses told authorities that the machine was placed in such a way as to avoid the gaze of surveillance cameras.

Brian Markus, CEO of Aries Security, first identified the machine as a trap. "In any casino anything that is considered that high value has a camera," Markus told Wired, "and they placed it where there were no [hotel] cameras visibly watching that exact spot where the ATM was."

Shining a flashlight through the machine's smoked glass screen, Markus didn't see the typical camera looking back at him, but instead a PC meant to steal card data.

The best part? The ATM was operating right outside the hotel's security office. Major bonus points for that one. [From: Wired, via Neatorama]

Computers

Volatile ATM Strikes Back Against Human Operators


South African crooks have recently focused their attention on Absa Bank, one of the African nation's largest financial institutions, by bombing several of the company's ATMs during the last year. In the Western Cape region, a popular tourist destination, authorities also claim to have identified approximately 40 data-stealing card-skimmers at various ATMs.

To protect its machines -- and inflict a little street-corner retribution on the ATM miscreants -- Absa installed cameras and pepper spray canisters on 11 machines in the Cape, according to IOL. If someone attempts to manipulate the card slot, hook up a skimming device, or plant explosives on one of the machines, the camera is designed to detect the activity and deploy a cloud of pepper spray. Recently, the plan was theoretically executed to perfection in the town of Fish Hoek, but the recipients of the pepper spray burst were innocent maintenance workers instead of attempted thieves. The repairmen had to seek immediate medical attention.

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Computers

Computer Glitch Leaves Bank Customers Fuming, Ferrari-less


It's bad enough when your credit or debit card is rejected, but imagine if you tried to make a large purchase and were declined due to a computer glitch. That's what happened to customers of Barclays bank across southern England when a "faulty disc array" took out 1,500 ATMs along with phone and Internet banking services, altogether preventing merchants from processing purchases.

According to BBC News, Mark Taplin of High Wycombe was one of those haplessly caught in the middle of this embarrassment. While some were left borrowing a few dollars for lunch, or wondering why they couldn't access their plane ticket, Taplin was turned away while attempting to purchase his dream car -- a Ferrari. In an e-mail to BBC News, Taplin said, "Trust this to happen the only time in my life that I'm ever likely to buy a Ferrari. I'm not amused."

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Thieves Ditch ATM in the Middle of the Street

Thieves Ditch ATM in the Middle of the Road

There are plenty of ways to rob an ATM, though most require a degree in engineering or computer programming. So if you're not technologically inclined, there is only one real way to empty an ATM of its bounty: brute force.

For the record, smashing, cutting, or breaking open an ATM is no easy task. No one is going to walk into a bank vestibule with an acetylene torch and walk out a couple minutes later a few thousand dollars richer. No, getting to an ATM's paper-filled innards is an arduous undertaking that takes several man hours, thanks to its heavy metal casing.

Even if you're prepared to do all that, you've got to solve the issue of how to get the damn thing to your secret criminal lair. ATMs weigh several hundred pounds, and are usually bolted to something or encased in concrete. The obvious solution? Construction equipment. According to the Ledger-Enquirer, around 3:00 a.m. Monday, thieves in Phenix City, Alabama opted for a backhoe to yank a Wachovia ATM free of its concrete base and place it in a flatbed trailer. Leaving the backhoe behind, they drove through the city streets until their plan came to a premature end when the ATM fell off the trailer and spilled into the street. The money, of course, stayed safely inside.

The dispenser was too heavy to load back onto the trailer, so they left both the ATM and the truck in the middle of the road, scampering away into the night.

Police Chief Ray Smith said he would release videos and photos captured by the ATM's security camera if they could be recovered, and hopes to nab the suspects. We're pretty sure they've left town by now, though, shamed into hiding over their failed heist. [From: Ledger-Enquirer]

Computers

Criminals Use Malware to Steal Account Info and Cash From ATMs

Criminals Use Malware to Steal Account Info and Cash from ATMsIf things continue at this pace, we may never use an ATM again. Stealing money from other people's accounts using information garnered from an ATM is nothing new. We've seen hackers grabbing data as it's transferred from the ATM to the bank's servers. We've even seen the first use of ATM card skimmers, which collect information as customers swipe their cards.

While those schemes require a certain amount of above-average skill, almost anyone can install a program on a Windows PC, and that's all that is required for the latest ATM theft scheme.

CNET now reports that close to 20 ATMs, mostly in eastern Europe, have recently been found to be loaded with malware (warning: PDF) that could allow criminals to collect account numbers, retrieve PINs, and even empty an ATM of all its cash. All of the ATMs discovered to be infected were running Windows XP and were loaded with a program that pretends to be a legitimate application while it actually steals information. With the hack, thieves use a "trigger" card (a dummy ATM card with special instructions programed into the magnetic strip) to tell the ATM to print out all of the stolen data, or even to empty its cash reserves.

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Cell Phones, Cameras

Seattle Dude Arrested for Taking ATM Photo, and for Being Cryptic

Man Arrested for Taking Photo of an ATM? Not So Much.
After snapping the above photo of a pair of Loomis employees filling an ATM, self-described straight-edge vegan and anarchist Shane Becker got himself arrested at a Seattle REI.

While we don't doubt Becker's innocent intentions (apparently, he snapped the photo out of sheer curiosity), what got the idiot arrested was likely not the photo, as he claims, but his refusal to cooperate with the understandably suspicious employees tasked with filling the machine with cash.

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ATM Theft Sprees Net Crooks Almost $2M

New Yorkers are once again the victims of an ATM-rigging spree that managed to steal more than $500,000 from hundreds of Staten Island residents.

According to the Daily News, the thieves attached skimmers on card slots in ATMs at Sovereign Bank branches in the New York City borough. In addition to the scanned data, the criminals hid tiny cameras in the lighted ATM signs and used the cameras to record victims punching in their pin numbers.

Police told the Daily News that the thieves used the stolen data to create fake ATM cards that were electronically identical to customer cards; they then used these at different banks around town.

Read more →

Computers

First Active 'ATM Card Skimmer' Spotted in the Wild



ATM card skimmers. We knew they were a terrifying technical possibility, but, until now, no one had ever found one in the wild. That is until a reader, known as Dan, e-mailed The Consumerist with the photo above and a tale about a suspicious-looking ATM at his local Washington Mutual branch.

Dan noticed that something was a little off. The card slot didn't seem to be completely attached to the machine. Being paranoid after seeing a special a few years back about devices that could be unobtrusively attached to an ATM and used to steal your bank information, he gave the slot a quick tug, and it popped right off in his hand.

On the back of the fake faceplate, Dan found a flash drive, a battery, and a mini USB port for retrieving the stolen information. The faceplate allowed the bank card to pass through to the ATM, reading the card without disrupting normal operation.

Read more →

Audio/Video

Japan Installs Cell Phone Jammers Near ATMs to Prevent Fraud



If you're tired of being scammed at ATMs by kind, gentle-hearted con artists (and then forgetting it ever happened), you'll be stoked to know that Japan is looking out for you. Chiba Bank has installed phone signal jammers at four unnamed ATMs at bank branches in the Tokyo region, and while it has gone down as the first institution to go to such lengths, we highly doubt it'll be the last. It's not entirely clear what exactly the criminals were able to convince people to do via mobile, but it's probably something like "psst... get me out some cheddar and meet around back." Not that we have any experience in the field or anything...

[Via textually]

Cell Phones

Send Cash Through an ATM Using New ATMSend Service

Money makes the world go 'round. The problem is, how to get money 'round the world. Sure, there's always Western Union or MoneyGram, but if you ask us, that requires just one step too many. A Charlotte, North Carolina-based company, Privier Inc, hopes to have an easier, and more accessible, solution.

The company's service, dubbed ATMSend, would allow a user to send cash to another user for pickup. What sweetens the deal here is that neither the sender nor the receiver would require a bank account at the participating bank, or at all. All that's required is that the sender verify their identity by registering a cell phone. Once the cash is ready for transfer, the sender would input their registered number into the ATM, wait for a text message with an authorization code, and then send the receiver the authorization code for pickup.

Depending on the participating banks' fee (if any at all), ATMSend could even be a cost-saving alternative to services such as PayPal, which takes a cut from certain transactions. Sending money sans a bank account is sure to be valuable for a number of people, though we're a little worried about the possible ways this could be beneficial to evildoers. [From: MarketWatch]

Computers

Citibank/7-Eleven ATMs Infiltrated, PINs Stolen

Citibank ATMs Infiltrated, PINs StolenSo you follow your bank's advice to the letter when it comes to ATM security: You don't let someone snoop over your shoulder why you're using it, you don't stand there to count your cash immediately after withdrawal, and, most importantly, you've chosen a PIN that isn't "1234."

Good for you, you're doing your part. Sadly, though, it seems that Citibank, and two companies that operate thousands of its ATMs, are not doing their's. Somehow hackers have found a way to infiltrate those ATMs and steal the PIN numbers of anyone who used them.

The automatic tellers affected are the Citi-branded ones found at 7-Eleven stores. These machines -- of which there are 5,700 in total -- are operated by Cardtronics Inc. and Fiserv Inc. The machines themselves were not affected, but it seems that both companies failed to encrypt PINs that were transmitted from the ATM to their central computers, so once the hackers were able to access those central servers, they were able to grab numbers without any hassle.

It's unclear just how they gained access to those supposedly secure central computers or how many bank accounts were compromised, but Citibank is taking steps to send new debit cards to those whose PINs, regardless of how complex, were stolen. Maybe it's time for you to ask your bank just how secure their ATM interactions are. [Source: AP]

Computers

Line Extends Around the Block For ATM That Pays Double

ATM pays double


If a bank's automatic teller machine was malfunctioning and spitting out extra cash, what would you do? Call the bank and let them know of the error, or just hurry up and get in line? According to the Daily Mail, dozens of Brits chose the latter, queuing up outside a local convenience store when it was discovered that the ATM machine on the curb was paying out twice what people had requested.

Usually £300 (about $600) is the limit a British ATM machine will pay out, but this one was happy to pay out up to £600 all the while only debiting half that against the users' accounts. As word of the generous ATM spread, the line lengthened until the machine, at last completely spent, stopped giving up the goods.

You might think that these users will surely see an extra withdrawal applied to their accounts later to make up for the discrepancy, but there's actually a chance these folks may get off without paying extra, all because the banks may just decide that it's not worth the hassle to track down the offenders.

Here's to corporate efficiency!

From The Daily Mail

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Surprise! ATMs Are Covered In Germs

Surprise! ATMs are Covered in Germs

CBS 2 in Los Angeles apparently ran out of things to report this week -- we guess they're bored of Super Tuesday, the Super Bowl, and war -- and jumped on a timeless "look how gross this is" story by swabbing Q-Tips on a bunch of ATMs, a piece of machinery that we all come in contact with on a regular basis. Not that this is much of a shock, but after sending the swabs to a lab, the investigators discovered that the ATMs were filthy. Of the 20 ATMs tested in the Los Angeles area, 17 were positive for some type of bacteria.

Most of the bacteria found was fairly common and not particularly dangerous, but some were covered in moraxella catarrhalis, a bacteria capable of causing everything from ear infections to meningitis, or rothia, which is common in our nose and mouth....we're still wondering how that got on there.

One useful discovery the investigative team made was that ATMs with chrome or metal buttons were less likely to hold on to bacteria.

So, if you're a bit of a hypochondriac you might want to avoid ATMs with plastic buttons or touch screens. In the meantime, stay tuned for the next sensationalist story here, as we're just as guilty as CBS 2 when it comes to covering the ol' "look how many germs are on this everyday object" story.

From CBS 2

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Computers

Children's Toy Bank Uses ATM Cards and Touch Screen

Children's ATM Toy Spits Out Real Cash
If you were worried that your child wasn't being trained to be a good economic citizen, then check out this toy to make sure he or she grows up learning the value of plastic. The Children's Touch Screen ATM Bank comes with a card and a PIN for your tyke to manage an account of up to $999.99. The bank accepts bills of all kinds and coins.

Some of you probably hope that this little gizmo will teach your kid the value of a dollar. It's more likely he or she will just learn that there's a machine that gives them money anytime they put their card in it. We're waiting for "Baby's First Massive Credit Card Debt Simulator" to hit the market.

From Shiny Shiny

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