FBI Warns Banks About New ATM Scam

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The days of bank robberies in the style of John Dillinger or Bonnie and Clyde may be over, but criminals still target banks looking for a payout. Now they just use 21st-century tactics.

The FBI is warning banks about a new fraud scheme known as an ATM cash-out, Krebs on Security reports.

The scheme involves criminals hacking into a bank or payment card processor and using cloned bank cards, allowing them to withdraw massive sums of money from machines in different locations.

"The FBI has obtained unspecified reporting indicating cyber criminals are planning to conduct a global Automated Teller Machine (ATM) cash-out scheme in the coming days, likely associated with an unknown card issuer breach and commonly referred to as an 'unlimited operation,'" reads the FBI alert, sent on August 10.

To gain access to a bank's system, the criminals typically enact a phishing scheme. Once inside, the hacker will tamper with settings and disable ATM withdrawing limits.

To prepare for incidents like this, the FBI has encouraged banks to adopt stricter security measures, including network monitoring and more rigorous password requirements, such as requiring employees use two-factor authentication.