Convenience Store ATM Fraud

Michael

Really appreciate how inconvenient and frustrating it is to be a victim of this kind of fraud

Just one small comment on your post which I appreciate was more about point -of -sale than ATMs. 

All UK ATMs are EMV compliant using Chip and Pin technology and have been for some time.  This means that when a Chip card is used in them it will automatically be read and it prevents a fake Chip card being used to withdraw cash.  

EMV is rolling out across Europe but for the foreseeable future there will be countries where a fake card can be used as the ATM will read the copied mag-stripe.  

 Graham

 Graham Mott, LINK ATM Scheme

Graham

These withdrawals took place in the UK so there seems to be a hole somewhere.

Mike

""All UK ATMs are EMV compliant using Chip and Pin technology and have been for some time.  This means that when a Chip card is used in them it will automatically be read and it prevents a fake Chip card being used to withdraw cash."

EMV is rolling out across Europe but for the foreseeable future there will be countries where a fake card can be used as the ATM will read the copied mag-stripe.  

 Graham

 Graham Mott, LINK ATM Scheme

 20/11/2008 21:45:52 Michael Fuller added: 

Graham

These withdrawals took place in the UK so there seems to be a hole somewhere.

Mike"

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OOOUUUUCCCCHHHHH.

No wonder we couldn't convince Mr. Mott - LINK ATM to check out our CARD fraud solution. 

Mike said "banks need to start closing the gaps to fraud and that means enforcing adoption of Chip and PIN in ATMs."

Mike, banks at the moment are going through the "deer stuck in headlights" moment and most likely don't give a mouse's 'behind' about your last invoice and the money that was lost.  Prince Alwaleed Bin Talal's latest injection plus the bailout money will surely cover your citibank losses. Surely, they will remind you that at the end of the day, you will not have to pay for these fraudulent transactions.

The next time you use your new card, you'll probably get blocked by the bank's predictive risk management system. While the entire world have realized the fallacy of predictive risk management systems when it relates to investment and capital, most banks are still applying the same concept and employing these systems of predicting of how you might use your card. When this happens, try calling your bank to complain about getting blocked and you will be told that "Its also for your own safety that they are blocking you from using the card.".

"These withdrawals took place in the UK"

Were these withdrawals at bank ATMs or at "stand alone" ATMs in pubs or something like that?

The transactions were not at a Bank and all bear the name "RANC". There were transactions in "Hammersmith", "Shepherds Bush" and "London". I'm assuming they are an ATM because the amounts are all Cash Advances for either £100 or £250 with multiple withdrawals over three days. Since the card was cloned I can't see how these withdrawals would have been over the counter.

The loophole is possibly in a setting that states if the Chip is not able to be read, to allow the transaction to proceed. It is then up to the issuing bank to decide whether or not to honour that transaction.

In my (humble) opinion the banks should all be declining such transactions.

At the end of the day if the chip is not read/present the transaction relies on either terminal rules or the issuer to decision based on risk. The 'fault' seems to be a mag stripe transaction being approved on an EMV card.

Many people working for companies in the card (transactions) processing industry know that fraudsters have found a way to 'nuke' or 'break' the chip so as to force the fallback not only with the real card but also (of course) simulate an unreadable chip with the cloned card. If banks were to disallow the fallback, then they would most likely get MANY MORE irate calls from their cardholders.