Vectra Bank Adopts New Technology to Help Prevent ATM Fraud

ATM fraud and theft are some of the biggest problems in banking today. In an effort to combat ATM fraud, Vectra, as a part of ZB, N.A., is working with Diebold to replace all ATM card readers at all Vectra Bank branches with the new ActivEdge™  card reader. Installations are scheduled for August and September.

How could ATM fraud happen to you?

ATM skimming is the most common type of ATM fraud, which involves a compact card reader called a skimmer. The ATM skimmer is attached to the ATM's actual card reader, where a read head captures and replicates the card's data when it is inserted into the machine. The stolen card data is then used to create a duplicate of the actual card.

How does ActivEdge™ help prevent fraud?

The ActivEdge™ card reader is the first of its kind, according to Diebold . It counteracts skimming by altering the way an ATM card is inserted and read by the machine. There are four benefits that may make existing skimmers obsolete:

• External skimming – cards must be inserted long-edge first, helping to prevent external skimmers from reading card data
• Internal skimming – a moving, encrypting read head preventing skimmers from reading the card’s full magnetic stripe, helping prevent the ability to steal card data. It also helps prevent criminal modification to the card reader as current skimmers do not have this technology
• USB sniffing – helps reduce risk of card data capturing and tracking by encrypting communication to the central processing unit (CPU)
• Device pairing – each ActivEdgeâ„¢ card reader is paired with a specific ATM terminal to help prevent the installation of fraudulent devices

“This new technology should provide our customers with increased confidence when using one of our ATMs,” said Thomas Schmidt, Regional Facilities Manager for Vectra Bank. “Customers should know that the security of their money is a top priority, and that the ActivEdge™ reader is just another piece in our arsenal to keep their money safe.”

What about EMV cards?

Many banks are migrating to EMV cards (Europay, MasterCard, VISA the global standard for chip-based cards) with embedded chips that helps protect cardholder data. However, it will take years to fully implement these cards. In Europe, where EMV cards have been in use since the 90's, skimming losses are still on the rise anyway up 11% in early 2015 according to the European ATM Security Team. The ActivEdge™ works to prevent ATM fraud in both EMV and non-chipped cards.

To see the ActivEdge™ in action, watch this YouTube video .

Find a Vectra Bank ATM location near you.