ATM hacking scheme: FBI warned major banks of potential attack

REUTERS/Noah Berger

• The FBI reportedly sent a confidential email to banks
  Friday outlining a potential ATM security threat.
• The scheme is known as an “ATM cash-out.”
• Hackers use malware to access machines, lift controls
  and access large sums of money.

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The FBI is privately warning banks of a potential global hacking
scheme that could be carried out through their ATMs.

The bureau sent a confidential alert to banks Friday to notify
them individuals are planning a large-scale fraud scheme known as
an “ATM cash-out,” journalist
Brian Krebs first reported on his cybersecurity news
website. 

FBI spokesperson Lauren Hagee did not comment on the matter
specifically, but sent Business Insider the following statement
in response to questions about it:

“In furtherance of public-private partnerships, the FBI routinely
advises private industry of various cyber threat indicators
observed during the course of our investigations. This data is
provided in order to help systems administrators guard against
the actions of persistent cyber criminals.”

In an ATM cashout scheme, hackers can use malware to
access a bank or payment card processor and sometimes make
fraudulent copies of cards by imprinting stolen card data on
reusable magnetic strip cards.

Krebs said they can also manipulate account information and
security settings to make large sums of money available for
withdrawal.

“Just prior to executing on ATM cash-outs, the intruders will
remove many fraud controls at the financial institution, such as
maximum ATM withdrawal amounts and any limits on the number of
customer ATM transactions daily,” Krebs wrote.