Secret Service Warns of Uptick in ATM Skimming Attacks 

The U.S. Secret Service is warning financial institutions about a recent uptick in a form of ATM skimming that involves "cutting cupcake-sized holes in a cash machine and then using a combination of magnets and medical devices to siphon customer account data directly from the card reader inside the ATM," according to a report posted Saturday by KrebsOnSecurity.

The warning, sent to financial institutions last week comes after multiple reports of this type of fraudulent activity, sometimes referred to as “ATM wiretapping.”

Krebs describes the process of this kind of attack, which can take days to implement, while acknowledging that criminals are making it harder to spot ATM skimming devices and fraudulent activity.

In August, the FBI warned financial institutions of a worldwide ATM cash-out scheme. From that scheme, India-based Cosmos Bank disclosed that on Aug. 11 hackers stole nearly $2 million in fraudulent bank transfers and $11.5 million in authorized ATM withdrawals.

CUNA and the state leagues continue to press lawmakers to establish a strong national data security standard and ensure all entities that utilize consumers' financial information are held accountable.