In Brief: Anti-'Skimming' Guidelines Coming American Banker Wednesday, November 20, 2002
David Breitkopf HOUSTON - The chairman of a committee formed to combat "skimming" - the theft of personal information from credit and debit cards - said it will present best-practices recommendations to the Electronic Funds Transfer Association board by yearend or in January. Mike Hudson said last week that many of the recommendations of the ATM Integrity Task Force will be ways to "secure the PIN and ? make sure the PIN stays secured," including modifying PIN pads. The panel will also recommend standards for independent sales organizations and ways for their sponsor banks to ensure that those standards are met, he said. Mr. Hudson is the executive vice president and chief operating officer at Tidel Engineering LP of Houston, which makes automated teller machines. The task force members represent financial institutions, EFT networks, ISOs, and ATM manufacturers, all looking for a solution to the growing problem of skimming at ATMs. Most of their first set of recommendations will deal with the machines' internal workings. At its next meeting, in April, the panel will look at external prevention tactics. On the agenda will be how to combat skimming devices that are placed over card readers and thin, transparent membranes placed over PIN pads to capture cardholders' PINs.