ATM Security Recommendations

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Stay informed on emerging ATM and ITM attack methods and the latest security recommendations to keep your financial institution protected.

ATM Jackpotting

While ATM “jackpotting” is a hot topic, it doesn’t refer to a single method of attack. Instead, jackpotting encompasses multiple cash-out techniques, each requiring distinct prevention strategies. For example:

attack:

Offline Malware Attacks have criminals extracting the hard drive from an ATM and locally loading malware onto the device. The compromised hard drive is plugged back into the ATM and used to quickly cash-out the machine.

solution:

Hard disk encryption, a protection available through DBE’s Encompass Secure service, can thwart offline malware-based cash-out attacks but won’t stop man-in-the-middle attacks.

attack:

Man-in-the middle (MITM) ATM attacks are also known as a Host Spoofing Attack. A device is placed in the ATM that impersonates the host and authorizes transactions to cash-out the ATM. When an institution has fallen victim to a MITM attack, you may hear it also referred to as jackpotting.

solution:

TLS 1.2 encryption established between the ATM and your host network prevents man-in-the-middle attacks but doesn’t protect against offline malware-based cash-outs attacks.

Dive Deeper into ATM Threats & Protections

ATM Security Webinar by DBE January 30th

Join ATM security expert Paul Cowley from DBE, on January 30, 2025 for a free webinar at 10:00 AM to better understand the mounting threats your financial institution is facing today and what you can do to get protected now.

Register for Webinar

ATM Protection Recommendations:

No single countermeasure can prevent all types of attacks. As bad actors continue to innovate their attack methods, protections must also adapt and evolve making a layered ATM security approach essential.

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Reduce Risk with Encompass Secure from DBE

Reduce Risk with Encompass Secure from DBE

Encompass Secure offers full hard disk encryption and whitelisting, protecting against offline malware cash-out attacks, one of the attack methods commonly referred to as “jackpotting”.

We’ve intentionally kept the price point low and implementation time quick, to make this essential protection accessible for our clients.

Encompass Secure is available now for NCR units and in testing for Hyosung machines. Click here to learn more about Encompass Secure

Learn More About Secure

Mitigating Skimming Risks

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Card skimming remains a significant concern due to the ease with which criminals capture and exploit static Track 2 data from magnetic stripe cards. 

Skimming Protection Solution (SPS) and Tamper Detecting Card Reader (TDCR) are two effective tools to reduce skimming risk. In today’s environment, ATMs and ITMs require both SPS and TDCR, as each addresses a distinct skimming threat. 

SPS combats external/overlay skimmers and has been standard on all ATMs ordered from DBE since 2017. 

TDCR addresses ultra-thin, deep insert skimmers. DBE made TDCR standard on all new 80 series models since late Q3 of 2023 when it became available to order. If you’re unsure whether your ATM has a TDCR, reach out to your DBE salesperson. We can confirm and provide a field upgrade quote if needed. 

Upgrade to Activate Enterprise Software and enable Contactless Cards, reducing the static Track 2 data risk from magnetic stripe cards on your devices.

ATM Security FAQ's

What is an Offline Malware Attack?

In an offline malware attack, criminals extract the hard drive from the ATM and locally load malware, bypassing off the shelf protections within the manufacturer’s software stack. The compromised hard drive is plugged back into the ATM and used to cash-out the machine.

To date, known attacks have occurred on Diebold and Hyosung units, but criminals could adapt their tactics to put additional ATM makes at risk. Offline malware attacks are commonly referred to as jackpotting.

Hard disk encryption and whitelisting, available through Encompass Secure, are recommended protections.

What is a Man-In-The-Middle (MITM) Attack on an ATM?

Otherwise known as a Host Spoofing Attack, a device is placed in the ATM that impersonates the host and authorizes transactions to cash-out the ATM.

Enabling TLS 1.2 encrypted communications with the host helps protect against this type of attack.

Because MITM attacks cash out ATMs, they are sometimes referred to as jackpotting.

Are Top Hat Alarms and Custom Keys Fool Proof?

No, top hat alarms and custom top hat keys are not fool proof. The top hat of an ATM was never designed to be a secure area as it does not contain the safe. As criminals have evolved their attack methods and preyed on the components within this top hat, securing this area has come under focus.

Top hat alarms and re-keying ATMs should be seen more as a deterrent than fool-proof protection. Even with custom top hat locks and keys, criminals that are determined can find ways into the top hat via brute force. This is why Encompass Secure for hard disk encryption and whitelisting, and TLS 1.2 encryption with your host are recommended.

What is TR-31?

The Payments Card Industry (PCI) implemented a new requirement for transferring encryption keys from the host processor to the ATM. This new standard is referred to as TR-31 and will be mandated by PCI and enacted by host processors.

Achieving compliance depends on your ATM hardware and software, along with your host processors requirements. If you need help determining if your fleet’s hardware and software meet compliance requirements, you can contact DBE client support at support@dbeinc.com. Site surveys may be needed to assess upgrade eligibility and pathways for older units.

Paul Cowley's Top Financial Brand Article

ATM Security

Read Paul Cowley’s ATM Security article The Financial Brand just named a Top 5 for all bankers to read in 2025 here:

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