A new report by analytics and credit scoring firm FICO has revealed that debit card fraud at ATMs and merchant in the US has increased by 10% in 2017 compared to 2016.
The statistics also showed that hacking of ATMs and merchant card readers also rose by 8% in 2017 as against the previous year. This spike comes after higher increases in this type of fraud.
FICO senior director of product management Michael Betron was quoted by CNBC as saying: “If you look at it over the last three years, the rate of compromise has almost doubled, every year over the last three years.”
Data for the report was obtained from the firm’s Card Alert Service designed to monitor ATMs and other card readers across the country.
FICO vice-president of fraud solutions, TJ Horan said: “The number of compromises and the number of card members impacted set a new record last year.
“While most devices are safe, fraudsters are developing new technology and methods for hacking ATMs.
“This is why it’s important for consumers to be cautious when withdrawing cash, and also for them to check their account regularly and confirm that all the transactions on their debit card are legitimate.”
The report also comprises guidance for users from FICO to avoid ATM and card reader fraud. Among the guidelines includes staying away from suspicious ATMs or card reading machines, consulting bank or getting a new card in case of suspected compromise, and regular monitoring of transaction history.