Florida Banking May 2024

maintenance and servicing of ATMs are crucial to ensure their security. Encourage Customer Vigilance: Educate customers about the risks of ATM skimming and provide guidance on how to detect and avoid compromised ATMs. Promote the use of chip-based cards, as they are less vulnerable to skimming compared to magnetic stripe cards. Secure ATM Locations: Ensure that ATMs are placed in well-lit, high-traffic areas with good visibility to deter criminals. Regularly trim nearby foliage to eliminate hiding spots for potential attackers. Encryption and Security Updates: Implement encryption on ATM card readers and regularly update software to protect against emerging threats. Ensure that ATMs are compliant with industry standards, such as EMV (Europay, MasterCard and Visa). Employee Training: Train bank employees to recognize the signs of potential skimming devices and to follow established security protocols in case of a security breach.

Preventing ATM Skimming Attacks To safeguard their customers and protect their reputation, Florida banks must take proactive measures to prevent ATM skimming attacks. Here are some effective strategies we recommend: Deploy Anti-Skimming Technology: Invest in anti-skimming technology that can detect and prevent skimming attempts. Anti-skimming devices serve as a formidable defense mechanism against skimming attacks. These devices are designed to detect and prevent skimmers from successfully harvesting card data. They come in various forms, such as electronic jammers, card and PIN shields, and encryption technologies. The primary objectives of anti-skimming devices are: • Detection: Anti-skimming devices utilize advanced technologies to identify suspicious devices or modifications on ATMs and ITMs. These devices can detect irregularities in the card reader’s magnetic field, signaling the presence of skimming equipment. When a problem is detected, the card reader is locked down and a signal is sent to the alarm panel and alert

Collaborate with Law Enforcement: Maintain a strong relationship with local law enforcement agencies to facilitate quicker response times to incidents and investigations. ATM skimming attacks represent a growing challenge for banks in Florida

monitoring service. Video Verification can also be used here to identify the suspect. • Prevention: By rendering skimming devices ineffective, anti-skimming technology prevents criminals from obtaining crucial

IT IS ESTIMATED THAT SKIMMING COSTS FINANCIAL INSTITUTIONS AND

CONSUMERS MORE THAN $1 BILLION EACH YEAR.

card data. These devices serve as a strong deterrent, forcing criminals to look for easier targets. • Customer Confidence: Implementing anti-skimming measures fosters trust and confidence among customers. Knowing that their financial institution prioritizes security reassures them that their transactions are protected, encouraging continued use of ATMs and ITMs. • Cost Reduction: Skimming incidents not only harm customers but also inflict significant financial losses on banks and financial institutions. By investing in anti-skimming technology, these institutions can save money by preventing fraud and avoiding potential lawsuits. Regular Inspections: Banks should conduct frequent, comprehensive inspections of their ATMs to check for any signs of tampering or skimming devices. This includes examining card readers, keypad overlays, and any exposed cables. Regular

and around the world. With the advancement of technology, criminals have become increasingly sophisticated in their tactics. However, Florida banks can adopt a multi-faceted approach to mitigate these risks, ranging from regular inspections and anti skimming technology to educating customers and collaborating with law enforcement. In the battle against ATM skimming attacks, staying one step ahead is essential to protect both the financial well-being of your customers and the reputation of your institution. By implementing the strategies outlined here and staying informed about emerging threats, Florida banks can better defend against this evolving menace and maintain a secure banking environment for all. Adam Stephens serves as the chief development officer of STS Group. STS stands ready to help your organization secure and protect your branches, ATMs, and ITMs from fraud and theft. You can contact him directly to schedule an introductory consultation. He can be reached by phone at 256-957-8018, or by email at adams@stsgrp.com.

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