Cash thieves hit jackpot in this new cardless ATM fraud

A new kind of automated teller machine (ATM) fraud has victimized neighboring countries and the banking industry is bracing itself for when it reaches the Phlippines.

Under jackpotting, scammers can draw cash from an ATM without the use of a card. All it takes is master key that will open the machine and a compact disc that will infect it with malware.

“This is new. Biruin n’yo kahit walang card nagdi-dispense ng pera yung ATM,” said Manuel Delizo, vice president and chief security officer of RCBC Savings Bank and board of director of Bank Security Management Association.

In his presentation at the 4th National Summit on Cybercrime in Camp Crame, Delizo said the scammers would return days later and run the program.

This would then cause the machine to dispense up to 40 bills without the need for card or verification.

“In 2016, this what we call the new age of ATM fraud, they call this jackpotting and our neighboring countries were already victimized. Hopefully ‘wag naman po sana dito sa Pilipinas,” Delizo said

“When the scammers does run the program, he or she needs a specially generated PIN based on an algorithm unique to the malware. So nako-command na nila yung ATM,” he added.

He said the ATM departments of banks in the Phlippines were taking precautionary measures to protect their clients’ money from possible jackpotting and other forms of ATM fraud.

Among the measures they implemented were bolting the machine to reinforce its structure, installing pin pad covers, using tamper-proof locks, and securing network communications.

Delizo said banks were also upgrading network encryption, authentication, and malware protection between the main ATM application, hardware units, and the bank’s processing center.

He said they are also training their security personnel to make them more aware of the fraudulent activities.

Delizo said banks were also conducting ATM inspections and coordinating with the anti-cybercrime groups of the Philippine National Police and National Bureau of Investigation.

“Before naririnig lang natin yung mga credit cards na kinoclone sa ibang bansa at dito ginagamit sa Pilipinas," Delizo said.

"The war was not with us then but now ang nabibiktima na po tayong mga Filipino so nandito na yung gyera and we need the support of everybody like PNP ACG, NBI, Department of Justice dahil kailangan nating pagtulung-tulungan ito,” he added.

He said they have filed several cases against suspects in ATM fraud and most of them were foreigners.

“Based  on joint operations we conducted, most of the suspects are Nigerians. They were able to put a  skimming device sa machine ng isang banko. How sad dahil lahat ng suspect na nainvolved ay foreigner, may isang naligaw ng Filipino, siya lang yung nagwi-withdraw,” Delizo said.

He said the other suspects were Bulgarians, British, and French.

Supt. Jay Guillermo, PNP ACG spokesperson, confirmed Delizo’s statement that most of the suspects were foreigners.

“Most mga foreigners. These are Bulgarians and Romanians. Based on the study, they have the capability, they know the design of the machines,” Guillermo said.

“‘Yung Pinoy minsan para bang ginawa nilang runner lang and sometimes these foreigners are teaching the locals on how to place these skimming device and how to copy the skimming device,” he added. —NB, GMA News