Secret Service warning banks about ATM 'jackpotting'

KGO ^ | 1/29/18 | David Louie

[markomalley]

Thieves have discovered a new way to exploit older ATM's into spitting out every dollar they hold. It's called jackpotting because of the speed of the bills flying out, resembling how slot machines used to pay out coins.

The Secret Service has warned financial institutions to expect a wave of jackpotting over the next week to 10 days, based on its investigation of ATM crimes in several parts of the country.

The U.S. appears to be the latest target. In 2016, jackpotting yielded $13 million from ATM's. Twelve European countries and Mexico have also been hit recently.

Ahmed Banafa, from San Jose State's School of Engineering and an expert in the internet of things, says the thieves exploit free-standing ATM's operating Windows XP, which Microsoft no longer supports. The thieves first get inside the ATM to install malicious code or malware.

They do this either with a keyboard or by using an endoscope-style cable to plug into the processor. They dress as service technicians to minimize suspicion. Then, a second team arrives, punches in a code, and that triggers the ATM to empty its cash at the rate of 40 bills in 23 seconds.

Experts say the most vulnerable ATM's are those located in remote areas of convenience stores, liquor stores, restaurants or malls where the thieves can operate with little detection.

Here's what the Secret Service told ABC News about how jackpotting works:

Fraudsters pose as ATM technicians, even wearing uniforms and access the teller machine. They open it using a generic key that the Secret Service says is readily available for purchase on the internet. Once inside, they use a technical means -- installing a laptop computer and a cellphone into the machine -- to be able to remotely take over the machine and force it to discharge money. But to avoid detection, the bogus technician does not typically take the cash. That's left to a second co-conspirator.
The second co-conspirator, a "money mule," then goes to the compromised machine and calls the phony technician who initiates a withdrawal sequence remotely. "It runs until it is empty or the person standing at the ATM alerts the controller of the ATM to stop the withdrawal sequence because either law enforcement is nearby or for whatever reason they get spooked and want to leave the scene," O'Neill told ABC News.

The technician often returns to the empty machine to retrieve the the laptop and cellphone, putting the ATM machine back like he was never there.

[SW6906]

If they have a key to open the machine, why do they have to go to extraordinary means to trick it into spitting out money? Why not just empty it once you open it up?

[DoughtyOne]

In the movie “Fifth Element”, a hooligan tries to board a spacecraft claiming to be the character played by Bruce Willis (Corbin Dallas).

The Willis character (Corbin Dallas) had already boarded the spacecraft, so the ticket agent/stewardess refused the hooligan service and closed the ticket booth.

As she leaves, he pounds on the window in frustration. As he does so, about for automatic weapons drop down, and he is taken into custody, held for the police to arrive at gunpoint.

Perhaps that time has come in our nation.

Use the ATM as it is intended, no harm no foul.

Pull some shenanigans and make plans to visit the gray-bar hotel or die.

[Don W]

Boy, am I in the wrong business, and why oh why do I have morals and ethics anyway?

[SaveFerris]

Leloo Dallas Multipass

Multipass

[Gene Eric]

>> The Secret Service has warned financial institutions

SS? Is the FBI too busy, too distracted, too compromised?

[crosdaddy]

Treasury agents = S.S. maybe, not sure.

[markomalley]

If they have a key to open the machine, why do they have to go to extraordinary means to trick it into spitting out money? Why not just empty it once you open it up?

I believe the cash drawers have additional security on top of the electronics.

[Gene Eric]

That would make sense. Figured the SS had a more limited scope of responsibility.

[lightman]

USSS chain of command is the Department of the Treasury.

[markomalley]

Treasury agents = S.S. maybe, not sure.

The original mission of the Secret Service was counterfeiting. They didn't start the personal protection part of their mission until 1901. Counterfeiting/Fraud is still is a big part of their mission.

[HiTech RedNeck]

Security is pretty sad if one key opens a slew of ATMs. Who thought through the security model here? At the least, the bank should own the only key, and otherwise getting in should require drilling the lock.

[DoughtyOne]

I thought she did such a good job in that movie. Man, she knocked it out of the park.

Perhaps she simply took good direction, I don't know, but I really enjoyed her performance.

I find that I like Luc Besson movies, at least two that I know of. There's a new one out by the name of "Valerian". It's campy and could be criticized if someone was of a mind to do it. I still like the campy semi-quest action packed format. Despite some weaknesses, the movie is one that I've already watched a few times and will a lot more over the years.

[SaveFerris]

First woman with orange hair I ever found attractive, LOL.

[DoughtyOne]

Should have pinged you to post 13 above.

SaveFerris had linked you in to some comments to us, I was responding to.

[DoughtyOne]

It would seem like they should have a better security setup as long as ATMs have been around.

[Harmless Teddy Bear]

SS is part of the Treasury department.

[vette6387]

The other thing people need to understand is that thieves can grab the code from your car’s key fob door lock if you use it at a rest stop or some other place where you can be observed, and while you’re in “relieving yourself,” they are in your car “relieving it” of all your valuables, then re-locking it so you have no idea how your $hit was taken.
ALWAYS use the button on your door if you are in a place where your car can be compromised, even the parking lot at Home Depot, etc.

[HiTech RedNeck]

I’m surprised there’s room to put that much electronics into the ATM. Was that intended to make them serviceable? Well, anything a repairman can do, a hacker can as well.

The machine should summon police upon being opened unless the bank itself previously scheduled the opening event in some secure manner.

[HiTech RedNeck]

To prevent this from happening to garage doors, they long ago went to rolling codes. Why don’t key fob codes roll too?