Is Your Bank Keeping Up with Compliance Skimming Standards?
( b2b.mastercard.com/news-and-insights)
Avoid the legal risks and protect your customers from skimming attacks
Checklist of Compliance Standards for ATM Vestibules (Suggested Due Diligence)
Use this checklist to ensure your ATM vestibule meets today’s strict security requirements:
- Encrypt cardholder data during transactions.
- Install anti-skimming technology on ATM vestibules.
- Regularly test and monitor security systems and access control devices.
- Ensure network security to prevent unauthorized access.
- Implement physical security around cardholder data storage areas.
for more information and resources visit www.pcisecuritystandards.org/
- Upgrade to EMV or NFC technology to minimize skimming risks.
- Ensure that ATM vestibules are equipped with EMV-compatible card readers.
- Perform regular checks to verify that the technology is up-to-date.
for more information and resources visit www.emvco.com/
- Protect customer information by implementing secure access control systems.
- Ensure vendors and service providers are also GLBA-compliant.
- Conduct regular risk assessments to identify potential vulnerabilities.
- Establish policies for secure data storage and transmission.
for more information click here
- Implement data destruction policies for customer information.
- Ensure access control systems in ATM vestibules meet FACTA requirements.
- Regularly audit systems for compliance with customer information protection.
for more reading click here
- Install NFC-enabled systems to offer contactless access control.
- Ensure magstripe readers meet updated standards for secure data transmission.
- Update all magstripe readers to NFC technology for enhanced security and compliance.
By 2025, banks will be required to upgrade all ATM vestibules to NFC technology, as regulatory bodies like the Federal Reserve and ECB push for secure, contactless access control solutions.
for more information click here
Compliance Isn’t Optional—It’s Essential for Securing Your Customers' Data
” In just two weeks, Morgan Hill police found six skimmers and a tiny camera at two ATMs owned by Bank of America,” highlighting the growing issue of skimming devices, as reported by NBC Bay Area. ” ( NBC Bay Area
By Stephanie Magallon )
Skimming attacks and data breaches in ATM vestibules are on the rise. Non-compliant banks face serious fines and increased fraud liability. Don’t wait for a breach—ensure your bank is compliant with today’s evolving standards
Understanding U.S. Laws & Codes: Protecting Customers’ Data is a Legal Obligation
” The people getting victimized − it’s not like they’re Fortune 500 CEOs; they’re people who need the money and they need it badly.” (said Ciaran McEvoy, a spokesman for the U.S. attorney’s office.)
Compliance with U.S. regulations is not just about security, it’s a legal necessity. Banks must adhere to several key codes and laws to ensure they protect customer data and avoid severe penalties. Here’s what you need to know to keep your bank compliant and secure:
PCI DSS (Payment Card Industry Data Security Standard)
- Requires banks to encrypt cardholder data, regularly test security systems, and ensure secure access controls.
- Failure to comply can result in fines ranging from $5,000 to $100,000 per month.
Gramm-Leach-Bliley Act (GLBA)
- Banks are required by law to protect customers' personal financial information using secure access systems.
- Non-compliance can lead to penalties up to $100,000 per violation, as well as consumer lawsuits.
FACTA (Fair and Accurate Credit Transactions Act)
- Mandates the protection of consumer information from unauthorized access. Banks must have robust access controls to prevent skimming and fraud.
- Violations can result in damages of up to $1,000 per consumer.
EMV Liability Shift
- If your bank hasn’t upgraded to EMV or NFC technology, you could be held financially responsible for any fraudulent transactions that occur from skimming attacks.
Recent Regulatory Updates in Anti-Skimming Compliance:
EMV Liability Shift:
Banks are required to transition from magstripe to EMV technology to avoid increased liability.
Upcoming Compliance Deadlines:
The Federal Reserve and the European Central Bank (ECB) have been ramping up requirements for NFC-enabled access control at ATMs. By 2025, new compliance measures will require banks to update all vestibules to include NFC (Near Field Communication) technologies, helping ensure secure, contactless entry to ATMs.
U.S. Code Title 18 (18 U.S.C. § 1029) – Fraud and Related Activity in Connection with Access Devices:
This federal statute criminalizes the unauthorized use of access devices (such as credit and debit cards) and skimming-related activities. Banks that do not take preventive measures against ATM skimming could be subject to investigation under this law, which carries criminal penalties for violations.
Compliance Is Changing, Are You Ready?
Secure Your ATM Vestibules Now
Regulations are always evolving, and the threats to customer data are growing more sophisticated. Don’t wait for a breach or a penalty. Let us help you secure your ATM vestibules with a free compliance audit today, and ensure your bank is protected
How Anti-Skimming Technology Can Protect Your Bank
” In just a matter of days, two people skimmed around 700 cards and stole over $11,000 from ATMs in Destin and Niceville, Florida.” as reported by Shelby Myers on WALA Apr. 24, 2023 ( FOX 10 News )
Implementing advanced anti-skimming technology is essential for banks to safeguard ATM vestibules and ensure compliance with evolving security standards. Here’s how these technologies work to protect your institution and your customers:
- Anti-Skimming Technology: Designed to block unauthorized attempts to steal card data during ATM transactions, reducing the risk of fraud and skimming attacks.
- NFC-Enabled Access Control: Provides a secure, contactless method for customers to access ATM vestibules using their mobile devices or contactless bank cards, minimizing physical touchpoints and enhancing security.
- 24/7 Monitoring: Continuous surveillance and oversight ensure that any suspicious activity is detected in real time, allowing for immediate response and reducing potential breaches.
Transitioning Away from Magnetic Stripes
Is Your Bank Prepared?
Magnetic stripe technology is rapidly becoming obsolete. Mastercard has already started phasing it out, with all new cards set to be magstripe-free by 2029 and fully retired by 2033. This change, driven by the need for more secure payment methods and improved fraud prevention, is being adopted across the industry. With other major card brands following this trend, it’s critical for banks to upgrade their systems now to meet evolving standards and keep up with customer expectations.
(Source: Mastercard, 2021 Phase-Out Announcement)
Check out our Synergistics Anti-Skimming Reader to ensure your bank is fully protected
