Clone gang hits ATMs

19 May 2010, 15:52

By Murray Williams
Staff Writer

A sophisticated gang has raided the bank accounts of scores of Cape ATM bankers using hi-tech cloning devices and tiny mounted cameras.

According to a police expert, the devices are "professionally made" and include minute digital cameras which watch users enter their codes and four-gigabyte memory cards which record reams of customers' details. Because of this twin technology, even the integrity of cards containing the so-called "chip" are compromised.

But the devices' most dangerous attribute is that they are portable, and can be unclipped off ATMs in seconds after just a few hours in place, after which the gangs then download the information, possibly by Bluetooth and replicate the customers' cards, use their PIN codes and start spending.

One Cape Town woman recently had R16 000 taken from her accounts in eight withdrawals.

Carike Meyer had used both her credit card and debit card, linked to her Standard Bank cheque account, at the Total petrol station ATM next to Somerset Mall before travelling to Durban.

Her accounts were then raided between April 29 and May 3, until she spotted the withdrawals on a statement.

She immediately cancelled her cards and alerted both police and the bank.

Police investigators confirmed to the Cape Argus yesterday that several ATMs in the Somerset West/Strand/Gordon's Bay area had been targeted and that evidence of the cloning devices had been discovered.

An expert at the police's Bellville offices explained yesterday that the cloning devices were made so professionally that "it can be impossible for the customer to detect them".

The devices were stuck to the place where cards are slid into the ATMs, fixed with simple double-sided adhesive tape.

As cards slide into the ATM, they read the card's information. Simultaneously, a tiny digital camera watches the card-holder punch in the PIN code.

At that stage, the gang most probably keeps a watch at the ATM to monitor how many customers visit.

After just a few hours, or enough client traffic, they remove the device surreptitiously and get to work.

First, they plug the device into a computer, or transmit the file information using Bluetooth. They then manufacture new cards, using the customers' card details, establish their PIN codes from the camera footage and then start making withdrawals.

Meyer was initially dismayed when told by Standard Bank that they would not reimburse her.

But this changed yesterday after a Cape Argus inquiry and she was paid out in full yesterday afternoon.

Standard Bank spokesman Ross Linstrom confirmed recent cases in the Western Cape and said gangs using the hi-tech devices moved from area to area.

While "every effort is made to secure our sites and create a safe banking platform, the criminal element is rife", he said.

"The major banks have joined forces to share intelligence and patterns to combat ATM crime and we continue to do so."

Linstrom said customers' cases were investigated "on an individual basis" and said Meyer's initial non-payment was a "misunderstanding".

"Claims received from our customers are channelled via our branch network and customers are reimbursed within three days of the receipt of the claim," Linstrom said.

Meyer urged all customers who had lost money to ensure that they were paid out.


This article was originally published on page 3 of The Cape Argus on May 19, 2010

The Star

Comments by Sonny

This happened to me and I cancelled my Standard Bank Card over one year ago.

Soon we will have to use the old method of hiding our money under the bed and not in banks.

Only hermits will possibly be safe.

Banks are becoming like insurance companies when it comes to paying out.