ATM Fraudsters Set New ‘Modus Operandi’ For Looting the Money of Commoners

ATM frauds across the country have seen a surge since 2018. A total of 1,59,761 cases were reported in 2018 while 2,90,445 fraud cases were reported in 2020 alone.

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MiTM or man-in-the-middle attacks for ATMs have become a common cause of fraud in India for the last few years. Regarding the increasing incidents of MiTM attacks, all the banks have been asked to ensure their respective safety norms for ATMs through end-to-end encryption.

How Do the ‘New Modus Operandi’ Works?

The investigators after a long search found the method of the ‘New Modus Operandi’. The fraudsters first meddle with the network cable of the ATM. They insert a device between the ATM and the router. Then, to submit a withdrawal request, the attacker uses the restricted cards. After the ‘ATM Switch’ sends a declined message, the response is altered by the attacker in the middle and subsequently, he withdraws the cash.

Also Read:  Half of India’s ATMs may shut down by March 2019, warns CATMi

Order of The Central Govt to All Banks

The central government has directed all the banks to ensure end-to-end encryption between the ATM terminal. They also have been told that within the ATM premises, the network cables, input/ output port should be concealed and physically secured or protected. To avoid any kind of fraud cases, the banks must also remain alert.

TPT Policy Advocacy & Recommendations

  • The data of the customer must be regularly secured and backed up. All the banks should deploy advanced techniques that can detect ATM frauds.
  • As technology is expanding, the scope of ATM frauds is growing at an exponential rate. The absence of stringent cybersecurity systems gives fraudsters a high chance to commit malicious acts. Organizations need to build up their database of security breaches. The due analysis of each breach will in turn provide the insights to be acted upon.
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ATM Fraudsters Set New 'Modus Operandi' For Looting the Money of Commoners
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ATM frauds across the country have seen a surge since 2018. A total of 1,59,761 cases were reported in 2018 while 2,90,445 fraud cases were reported in 2020 alone.
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THE POLICY TIMES
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