Diebold, the American manufacturer of ATMs has created new technology that will attempt to stop the most common ATM fraud, card skimming. Their creation, ActivEdge causes consumers to insert their card into the ATM using the long edge. Skimmers have been using the motion of inserting a card and removing it to steal the cardholder’s information within the magnetic stripe. Along with inserting the card opposite the short edge, there is a moving head within the ActivEdge that accesses the data. Diebold believes this reader is the better than all the other readers on the market and easy to use.
Fraud and Security Analyst, Al Pascual says that the new reader will deter majority of the criminals. Majority of the deterrence comes from altering the way a card is fed into ATMs. This change will make a current external skimmer useless. Diebold is currently in talks with a number of major banks to install the new technology into their current machines. According to ATM Industry Association, financial institutions are losing more than $2 billion worldwide from the ATM skimming fraud, each year.
The card skimming fraud continues to grow in sophistication and prevalence, around the world. An anti-skimming security solution for ATMs is at the top of the list for consumers. As reports of ATM skimming continue to hit close to home, more and more consumers will go into fear of using ATMs at retail outlets and at banking branches. Now, a solution exists and it is a game-changer that is designed for card readers to counteract the modern-day form of skimming. The latest technology used for card skimming relies on being able to read the entire magnetic strip of an ATM card, when it is inserted using the short-edge orientation. The long-edge orientation of ActivEdge eliminates any chance of a skimmer being able to capture the information of the cardholder, when the ATM is used.