Bankers warn of increase in new ATM scam attacks

The professional association for Cayman’s banks on Wednesday warned automated teller machine (ATM) users to be on the lookout for scams that could see their accounts raided after a near-50% jump in malware attacks in the region.

The Cayman Islands Bankers’ Association said it was aware of the increase and that users of cash machines should stay on the alert and report anything suspicious to their bank.

An association spokeswoman said, “We work closely with our member banks to ensure customers are regularly informed about how to recognize and avoid various forms of fraud — including how to identify signs of ATM tampering.

“We encourage the public to stay alert and report any suspicious activity directly to their bank without delay.”

She was speaking after fintech expert Dwayne Russell told an anti-fraud seminar organised by the Jamaica Bankers’ Association and the Jamaica Institute of Financial Services in Kingston that malware attacks on ATMs continued to rise across the Caribbean.

Russell, the managing director of Jamaican fintech firm MC Systems, appealed to the sector to take action, and highlighted that the Latin America and Caribbean regions had seen a 46% increase in malware attacks in the last six months.

A press release from MC Systems noted that Russell had told the meeting, “It hasn’t reached us yet, but we know it’s in the region. That’s why we’ve already started reinforcing our systems.”

Russell explained the attacks involve malicious software designed to compromise machines and allow crooks to steal cash or sensitive information.

Attacks can be mounted through a variety of methods, including physical access to the ATM, network infiltration or even remote exploitation.

“Because networks are so secure now, attackers are getting creative,” Russell said. “They’re finding new ways to reach into the heart of financial systems, bypassing existing protections and launching attacks from within.

“It’s effective and it’s forcing us to rethink how we defend these endpoints.”

He said his firm, which provides hardware and software for almost half of Jamaica’s ATMs, is already working with the country’s banks to upgrade systems and boost security and threat prevention.

The Cayman Islands Bankers’ Association spokeswoman said, “CIBA and its member banks are taking these developments seriously, and continue to maintain a vigilant and proactive approach to fraud prevention and mitigation.

“Alongside robust technical safeguards, CIBA places significant emphasis on consumer education and awareness.”

The spokeswoman added, “We work closely with our member banks to ensure customers are regularly informed about how to recognize and avoid various forms of fraud – including how to identify signs of ATM tampering.

“We encourage the public to stay alert and report any suspicious activity directly to their bank without delay.”

A Cayman police spokesman said the service was aware of the warning and were in contact with banks in connection with possible threats.

He added, “While there have been incidents of fraud involving local ATMs in recent years, there have not been any incidents of the type spoken about in the press release thus far in the Cayman Islands.”