• 07
  • December
    2011

Five men were recently arrested for stealing almost $1 million from unsuspecting customers using Countrywide bank's ATMs (automated teller machines).

The ATM scheme included the installation of video cameras and skimming devices called "dip readers" at ATMs across the country. At least five ATMs were located at New York banks. Dip readers scan the magnetic strip on debit cards and create a record of the card. That information then can be used to create a duplicate magnetic strip on a blank card. Pin-hole cameras installed at the ATMs recorded the customers entering their PINs. The PIN, in conjunction with the duplicated magnetic strip, allowed those arrested to withdraw money from the user's accounts.

According to law enforcement authorities, installation of the pin-hole cameras and dip readers only took a few minutes. The devices were installed and uninstalled all hours of the day, so it is not as if every single ATM user in a given day had his or her information captured by a skimmer.

The five men arrested in conjunction with the fraud, three from New York, were charged with felony possession of forgery devices. Authorities believe that the men had not been working alone and are likely part of a larger organization.

Source: The Daily Hastings, "Five Arrested for Countrywide ATM Skimming Fraud," 11/22/11.