Retailers who own ATMs in the United States will no longer be able skim-by with ATMs that use magstripe card technology. All ATM transactions made with MasterCard-branded credit and debit cards must be EMV compliant by Oct. 1, 2016. Retailers that fail to upgrade their machinery will now face liability if credit or debit cards are used in a fraudulent transaction.
According to a study conducted by Risk Based Security, convenience stores and gas stations are actually the most susceptible to data breaches. The CreditUnion Times has reported that “skimmers have been attacking older ATMs in final efforts to gather card information from the weakest points of the ATM network”. The ATM Industry Association reported that on average, ATM skimming costs about $650 per card, and $5,000 to $100,000 per incident. For retailers, the threat of fraud liability is very real, and the financial consequences can be gruesome. According to credit-scoring and fraud analytics firm FICO, non-bank ATM fraud cases increased by 316% year-over-year from 2014.
Although many bank ATMs have already been updated to be EMV compliant, retail ATMs have been slower to adopt this new technology. In a Chicago Tribune article, one COO from the ATM industry reported that updating his existing fleet of 8,000 ATMs will cost $4,000,000. That boils down to an average cost of $500 per ATM.
One simple strategy to reduce this expense is to use a Freelancer Management System (FMS) like Field Nation, who specializes in onsite IT services like ATMs. Retailers and ATM operators can contract trusted freelancers on Field Nation who specialize in ATM hardware and software. This can cost significantly less than a using a full-time employee or an ATM service company to upgrade existing machinery.