CNP, Malware & Physical Attacks; The Future of Fraud in an EMV World

How Will EMV Affect Fraud In the U.S.?

Fraud After EMV  Continued Skimming of Chip card for mag stripe data Chip Card will still contain Mag stripe data for foreseeable future  Non Chip Location Cash-outs & International Cash-outs of stolen Mag Stripe Data Mag stripe data will have to be used at non chip location  ATM Shimming Device Designed to Capture Chip Data and then is converted to mag stripe data  The GOOD NEWS: Eventual & Significant Decrease in card present fraud (5+yrs)

The EMV “Ripple Effect” on Fraud  Significant Increases in Card Not Present Fraud Online & telephonic purchases No more pictures of our suspects!!  Significant Increases in ID Theft to Conduct Account Takeover Fraud Network Intrusions to obtain PII and password information  Increase in Physical Attacks on ATMs Card Trapping / Cash Trapping / Gas Attacks & Malware Attacks  Revert to Traditional Financial Institutional Fraud  Counterfeit checks/Account Takeover/Wire Fraud/Cracking Cards/Loan Fraud/Synthetic ID Fraud

Card Crackin’ / Crackin’ Cards  Got it’s name from Chicago area.  Activity Started by “Gangster Disciples”  Also known as “Drops” or “Doing Drops” or “Dropping Paper”.  Organization recruits younger individuals and college aged students with good banking credit new debit accounts at financial institutions.  Accountholder turns over debit card and PIN number to member of organization.  Other individuals deposit counterfeit/stolen checks into the account via the ATM.

Instagram Video of Davey Hines

Adina Been CashinOut (CT Investigation)

How Much as EMV Affected Skimming (ATM Attack Statistics - EAST)  ATM Skimming makes up 36% of all ATM Fraud but accounts for 90% of all ATM fraud loss.  Card Trapping – 3.2 Million in losses  Logical (Malware) attacks – 11.7 Million in losses  Gas Attacks – 21 Million in losses  Skimming – 2.4 Billion in losses

State of ATM Attacks Current (U.S.)   1 st Generation Skimmers (Digital Skimming)   2 nd Generation Skimming (Analogue)   Cash Forking/Trapping   Shoulder Surfing/Chaining Attacks   POS Skimming Current (Europe)   2 nd Generation (Analogue Skimming   3 rd Generation (Stereo Skimming)   Virtual Skimming   Malware Attacks   Cash Forking/Trapping   Gas Attacks   EMV Pos Skimming   ATM Shimming

Current U.S. Trends in Skimming

Card Reader Tapping/Eavesdropping

Insert (Throat) Skimmers Photos provided by NCR

Deep Insert Skimmers Captures Mag-Stripe No Storage on Device – wireless Transmitter

Deployment of POS Skimming Evolving Fraud Trends In the U.S.

Walmart Skimmers

Ingenico i3070 tampered and legitimate device EMV POS Skimming (For Mag Stripe Data) | 57

Compromised Chip Terminal

Inserted Shimming Device

ATM Cash/Card Trapping/Forking

Malware Attacks on ATMs  Malware takes control of the ATM PC to:  Control communication between PC and cash dispenser.  Or captured stored card data contained on drive of ATM PC

Jackpotting

Malware Circuit Board Injection Attack Macau (Chinese Territory)  Malware Injection into ATM to capture/store card data and PIN

Criminals will not surrender….They will just adapt to the circumstances!

Detective Mark Solomon Greenwich Police Department CT Financial Crimes Task Force ATM Skimming Intelligence Network Coordinator IAFCI CT Chapter President (203) (cell) Questions?????