Secret Service Warns of Internal ATM Skimming

The Secret Service has quietly warned financial institutions about an increase in the use of internal ATM card-skimming mechanisms used in conjunction with spy cameras that steal consumers’ PIN numbers, according to reports.

The warnings reportedly concern thieves drilling a small hole into an ATM machine and using magnets and an endoscope to place a card skimmer and spy camera within the machine.  The camera is placed in a location that gives it a clear view of the number pad and the recorded video is timestamped.  The thieves then tuck the wiring and camera battery through the hole and into the machine.  Metal faceplates, financial institutions decals, and ATM instructions are used to cover the hole and hide any indication that the machines were tampered with.  Once the skimming equipment and spy camera are placed, thieves can collect consumers’ credit card numbers and PINs by matching the timestamp from the card’s insertion into the machine with the timestamp of the PIN being entered into the machine.

This technique poses a unique challenge because it is difficult for a consumer to detect.