Banks increasing security at ATMs

Several banks are installing extra security devices on ATMs following two incidents last month in which fraudsters stole more than $54,000 from customer accounts through two BNZ machines in Auckland.

BNZ business development manager Shona Bishop said the additional security device, known as a "green sleeve" due to its distinctive colour, would make it difficult for fraudsters to fit skimming devices to the ATM's card reader.

"We expect to complete installation of the devices on all 450 BNZ ATM machines within the next two months," she said.

A hologram embedded in the sleeve inhibits replication of the device, while ATMs will display an on-screen message confirming that the green sleeve has been fitted, to reassure customers as to the device's validity.

The move follows suspected ATM skimming incidents last month at two Bank of New Zealand ATM machines located at New Lynn and Silverdale, believed to be the work of an organised crime syndicate.

Skimming devices were used to "harvest" PINs (personal identification numbers) and magnetic strip details from credit and ATM cards.

The information was then used to produce a fake card, providing access to bank accounts.

So far fraud arising from these incidents is believed to amount to $54,690, with 38 cards thought to have been compromised.

About 2000 BNZ ATM cards were cancelled as a precautionary measure, but no new incidents of fraud had been detected in recent days, Ms Bishop said.

There had not been any decline in ATM usage.

BNZ was assisting police with their investigation.

The bank had also stepped up the number of ATM inspections per day, increased physical security presence, trained staff on what to look for, and in some cases, was turning off ATMs at night.

ANZ spokesman Craig Howie said both the bank and its subsidiary, the National Bank, were looking at "a number of options" to guard against all types of fraud, including skimming.

Placing "green snouts" on ATMs was one option under consideration, he said.

"We already take several steps in this area.

"These are constantly reviewed and updated to ensure we provide our customers with the best level of protection possible."

ASB spokesman Clayton Wakefield said that before the latest incidents, the bank already had plans in place to install anti-fraud devices known as "jitters".

"We had planned to roll those out over 18 months, but we've accelerated our programme to have them in place at all our ATMs within six months," he said. .

Jitters cause cards to shake as they enter the machine, making it difficult for fraudsters to read card numbers.

The bank was also considering installing green sleeve devices, Mr Wakefield said.

"This is really an industry-wide issue, many customers use other banks' machines and security is something that concerns us all."

He declined to say how much the new security measures would cost but admitted they amounted to "a reasonable investment".

A Westpac spokesman said the bank already had "a comprehensive suite of security measures" in place, including an extensive network of security cameras at ATMs.

The bank was currently evaluating the possibility of installing plastic sleeves or "noses" at ATMs but nothing had yet been decided, he said.

All banks agree the best first line of defence against fraud is still customer vigilance.

SAFETY TIPS

To avoid ATM fraud cardholders should:

* Use their hands to block anyone viewing their PINs.

* Be wary of people offering "help" at an ATM or looking over their shoulders.

* Look at the ATM before using it. If for any reason it doesn't look right, don't use it. Instead, call the bank.

* Check bank statements to be sure there are no unusual transactions.

- NZPA