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New warning on ATM fraud

November 12 2002

A sophisticated scam targeting automatic teller machines in Sydney could spread right
across Australia, NSW police warned today.

Fraudsters, possibly part of an organised crime ring, hit four ATMs over the weekend 
and
stole hundreds of thousands of dollars from bank customers.

Police say the thieves attach an external "skimming" device to the ATM which reads and
stores information from the magnetic stripe on customers' cards.

That information is then transferred to other cards and together with the stolen PIN 
code,
the criminals "spend people's money", said Detective Inspector Michael Gerondis.

It was still unclear today how the thieves obtained customer PINs, although Insp 
Gerondis
said it could be as sophisticated as a pinhole camera.

Two ATMs on Sydney's Oxford Street, one on Newtown's King Street and one at the
beachside
suburb of Coogee were hit by the scammers.

Consumers around the country were today urged to take particular notice of ATMs when
transacting money.

"Any bank's ATM is susceptible to this device," Insp Gerondis told reporters today.

He said while all four ATMs already affected belonged to the St George banking chain,
"every bank has or will be affected by this".

Earlier, a St George Bank spokesman said they had identified more than 100 customers
from their bank alone who had been ripped off to a tune of well over $100,000.

Representatives from Commonwealth Bank of Australia, National Bank of Australia and
Westpac said they were working with police to track down customers who had used the
four ATMs.

All customers would be fully refunded and all banks would be reviewing their security
measures, the Australian Banking Association said.

"The ABA is always concerned about security issues - after an incident like this, banks
review their security and look at whether they can make any improvements," a
spokeswoman said.

A spokeswoman for NAB said 60 customers had been affected by the scam and had had
their accounts frozen to prevent illegal withdrawals.

"We have got our own internal teams looking into it, making sure all our security 
measures
are in place in case our ATMs are targeted," she said.

Commonwealth said they were appealing to their customers to come forward of they had
seen anything untoward.

"We take any security matters very seriously, but we have had no reports of any such
incidents affecting our telling machines," said a Commonwealth spokesman.

Westpac said the impact on its customers had been minimal but was using the incident as
an opportunity to review the monitoring of their ATMs.

AAP

This story was found at: http://www.smh.com.au/articles/2002/11/12/
1037080725468.html
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A<>E<>R
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Forwarded as information only; I don't believe everything I read or send
(but that doesn't stop me from considering it; obviously SOMEBODY thinks it's 
important)
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In accordance with Title 17 U.S.C. section 107, this material is distributed without 
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profit to those who have expressed a prior interest in receiving this type of 
information for
non-profit research and educational purposes only.
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"Always do sober what you said you'd do drunk. That will teach you to keep your mouth
shut."
--- Ernest Hemingway

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