Since the fall of 2009 the Winnipeg Police Service Commercial Crime Unit has been made aware of at least 38 incidents involving the tampering of Automated Teller Machines (ATM) resulting in payment card data and personal identification numbers being obtained from customers using the machines.
The bulk of these incidents of tampering occurred at stand-alone ATM’s. In each instance the suspects would approach the machine, cover the surveillance camera with paper, and place an overlay device over the card slot. This device would subsequently read and store the customer’s card data as the card was passed through the overlay and into the legitimate card slot. A pinhole camera placed above the keypad would then record the customers entering their personal identification numbers. In some instances the suspects wore various disguises to try to conceal their identity.
Once the data is captured it is then used by the suspects or their associates to withdraw money from the customers’ accounts or otherwise use their data to make fraudulent purchases. The data obtained from these incidents has resulted in excess of $200,000.00 in losses to various financial institutions. However the total potential exposure to loss based on the data stolen is in excess of $1 million.
The skimming of debit card data involves a number of steps from the manufacture of the overlay devices; the placement of the devices on ATM’s; the collection and retrieval of the data and overlays; the transfer of the data collected to a usable medium (i.e. plastic card with a magnetic stripe that can be read by an ATM or point of sale terminal); the distribution of that data or medium to others; the use of the data or medium illegally; to the disposition of the proceeds.
With the assistance of bank investigators the Commercial Crime Unit commenced a lengthy investigation to identify the makers/installers of these devices.
The investigation led to the execution of several search warrants and the arrest of a 30 year old male and 39 year old male, both of Winnipeg. They are facing the following charges:
Wear disguise with intent
Possess credit card data X 50
Use credit card data X 44
Possess instruments for forgery X 7
Possess proceeds of crime
The investigation has been ongoing by members of the Commercial Crime Unit. As a result, both males were re-arrested on March 4th and are facing the following additional charges:
Use of credit card data x 20
Possess Identity documentation x 6
Proceeds of crime x 2
Possess cocaine x 2
They have been released on a Promise to Appear.
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