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Data for this episode of Truth In Data provided by Mercator Advisory Group’s report – 2018 U.S. ATM Benchmark Report
- Debit fraud is more prevalent than ATM fraud, and both are less than credit card fraud
- ATM fraud: 4.6 basis points – Debit fraud: 5.6 basis points – Credit fraud: 10 basis points – bps = 1/10th of 1%
- The number of fraudulent ATM withdrawals increased slightly from 2012 (1.3 million) to 2015 (1.4 million)
- By 2017 EMV chips broadly moved fraud from the point of sale to online and ATM, significantly increasing ATM “Skimming” and “Shimming”
- Skimming occurs when a fraudster uses an undetectable card reader vs. the cards magnetic strip
- Shimming occurs when a fraudster alters the ATM device to harvest data from an EMV chip
About this report
Consumer use of ATMs to get cash, make deposits, and check balances remains strong despite the decline in check writing and new products like apps for digital person-to-person (P2P) payments, payment cards, and mobile wallets that aim to reduce the need for cash. A new research report from Mercator Advisory Group titled 2018 U.S. ATM Benchmark Report explores bank ATM placements in comparison to branch locations, current fraud trends, the launch of various cardless cash access technologies to provide cardless cash access at the ATM, and consumer attitudes toward ATM use.
“We see continued strong use of ATMs by many consumer market segments, including consumers who are also frequent users of online and mobile banking. Given predictions that cash use will begin to decline and in light of the precipitous drop in check use, making long-term investments in ATMs becomes more complex,” comments Sarah Grotta, Director, Debit and Alternative Products Advisory Serviceat Mercator Advisory Group and author of the report.