How Fraudsters Conceal ATM Fraud


A recent ATM fraud scheme that targeted banks in New York, New Jersey and Connecticut illustrates just how sophisticated these types of attacks have become.

While the skimming devices and equipment used in these kinds of attacks have not changed much over the years, the criminals’ methods have become far more sophisticated, experts say. For example, as fraudsters gain more knowledge about how banks and processors route and review ATM transactions, they can more effectively keep their schemes concealed.

On Nov. 6, federal authorities announced guilty pleas filed by two Romanian natives who helped orchestrate the tri-state skimming scheme that defrauded consumer bank accounts of more than $5 million. From 2012 to early 2013, Ioan Leusca, a.k.a. Ionel Spinu, and Dezso Gyapias installed skimming devices and pinhole cameras used to capture PINs as they’re entered on a keypad at numerous ATMs, according to the U.S. Attorney’s Office in New Jersey.

Leusca and Gyapias, along with other conspirators, then later used the card details they collected to create fake ATM/debit cards that were used to make fraudulent withdrawals.


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