Cash machines at risk of hacking attack

Cyber criminals are plotting a concerted malware blitz on cash machines in the next few days, the FBI has warned banks around the world. In an ATM “jackpotting” attack, a bank or payment card processor is hacked and cloned cards are used at cash machines to take out millions in just a few minutes. Uk-based banks with large international operations, such as HSBC and Barclays, are among those thought to have been made aware of the threat.

BANKS have been warned of an imminent threat that their cash machines could be mass-hacked by cyber criminals.

In a confidential alert on Friday, the Federal Bureau of Investigation told international banks that criminals were plotting a concerted global malware attack on cash machines in the next few days.

The FBI issued a warning about a highly choreographed fraud scheme known as an ATM “jackpotting”, in which crooks hack a bank or payment card processor and use cloned cards at cash machines around the world to take out millions in just a few minutes.

Uk-based banks with large international operations, such as HSBC and Barclays, are among those thought to have been made aware of the threat.

“The FBI has obtained unspecified reporting indicating cyber criminals are planning to conduct a global automated teller machine (ATM) cash-out scheme in the coming days, likely associated with an unknown card issuer breach,” the FBI warning said, according to Krebs on Security, which originally reported the alert.

The method usually involves physical access to a cash machine using specialised electronics and malware to take over the system and force it to dispense cash until it is empty.

Andrew Bushby, UK director at Fidelis Cybersecurity, said: “UK banks are a likely target – and this latest ‘ATM cash-out blitz’ will no doubt send shockwaves to financial institutions.”

He added: “Whilst the financial services industry is heavily regulated, it doesn’t make banks immune from being attacked by cyber criminals ... UK banks need to urgently take a look at their security posture.”

Smaller, independent banks are considered the most vulnerable to such attacks, according to NCC Group, a cyber security consultancy firm. Ollie Whitehouse, global chief technology officer at NCC, said that criminals tended to target smaller banks that issued debit cards but which might have less stringent security systems.

“It’s a symptom of organised crime becoming more capable; as they [criminals] become emboldened, they are able to do these orchestrated activities,” he said.

In one incident in Thailand in 2016, thieves made off in minutes with 12m baht, or about £280,000, from cash machines by targeting ATMS run by Government Savings Bank, a stateowned Thai bank based in Bangkok.

In another case in the US, criminals siphoned about $570,000 (£447,000) in cash from ATMS operated by the National Bank of Blacksburg in Virginia in two separate attacks in 2016 and 2017.

Ross Brewer, a cyber security expert with Logrhythm, said: “UK banks should be concerned and need to be putting measures in place that ensure they can identify anomalous activity.”

Cyber criminals typically steal credit card data to create fraudulent copies of legitimate cards on reusable magnetic strip cards, the FBI warned.

At a pre-determined time, the fellow conspirators withdraw account funds from ATMS using these cards and alter bank balances to force a cash machine to dispense all of its money.

The Financial Conduct Authority and National Security Agency have declined to comment.

The FBI was not available for comment.