How to combat ATM fraud

Security

In 2024, global ATM fraud incidents accounted for 84.1% of all ATM-related crimes. How can operators fight back?

May 6, 2025 by Chris Baird — CEO, OptConnect

ATMs are an essential part of the financial ecosystem, providing everyday consumers with convenient access to cash. However, as technology advances, so do the tactics and prevalence of bad actors looking to take advantage of the vulnerabilities in ATM networks.

In 2024, global ATM fraud incidents accounted for 84.1% of all ATM-related crimes, with cash trapping, card theft and skimming as the leading forms of fraud. From sophisticated cyberattacks, such as jackpotting and network breaches, to physical fraud schemes, ATM operators face an increasingly complex security landscape where proactive measures are paramount in protecting their devices and customers.

To protect consumers, the financial sector is increasingly leveraging IoT connectivity to enhance security and prevent fraud at ATMs. Deployers, especially those who don’t control or own their ATM locations, need to prioritize a multi-layered security approach, one that starts with a strong, secure connection. Many ATM operators have witnessed firsthand that without a reliable and secure network, ATMs become easy targets, leaving both businesses and consumers vulnerable.

Connectivity helps prevent ATM fraud

In many cases, ATM fraud schemes exploit networks that are weak or totally unsecured. Cybercriminals often target ATMs connected to unprotected networks, intercepting sensitive transaction data or deploying malware to gain control of the machine.

Skimming attacks, where fraudsters steal card information, and jackpotting schemes, which manipulate ATMs to dispense large sums of cash, are just a few examples on the rise that highlight the vulnerability of ATMs without secure connectivity protection.

A managed, secure network solution helps protect ATMs by encrypting data transmissions, prevents unauthorized access, and provides real-time fraud detection. When ATMs are connected through a dedicated, managed IoT solution, operators can identify red flags more quickly and respond to security threats more effectively.

Uptime is critical

One of the most overlooked aspects of ATM security is uptime, which refers to the percentage of time a machine is operational and ready to transact with customers. When ATMs experience network failures or go offline due to an outage, they become prime targets. Criminals often use offline machines, taking advantage of this opportunity to install skimming devices or tamper with the system undetected.

Reliable connectivity helps guarantee that ATMs remain operational and secure, helping provide consumers with safe ways to access cash easily. Real-time monitoring is an essential safety blanket that allows operators to detect and prevent potential security issues before they escalate.

Always-on awareness

Criminals don’t just use high-tech tools; they also look for weak spots or lapses in monitoring. When ATMs are closely monitored, it provides an opportunity for hardware to be tampered with or malware attacks to be launched unnoticed.

That’s why today’s ATM security needs to be proactive. Secure, managed connectivity keeps machines online and visible. Real-time monitoring enables the detection of suspicious behavior early, allowing adaptive systems to respond promptly to new threats.

People also play a key role. With proper training and clear protocols, staff can catch issues that technology might miss. Together, smart systems and human oversight create a stronger defense.

ATMs need future-proof security

As physical ATMs become smarter and more connected, encryption isn’t just a nice-to-have; it’s a baseline requirement. Every piece of data, from card details to software updates, should be encrypted to prevent interception and tampering. Without it, criminals can exploit the physical access point of the ATM to breach the entire network.

Operators should also review where and how their ATMs are deployed. Machines placed in low-traffic or poorly monitored areas are more likely to be targeted. Combining encrypted communications with tamper-detection sensors, locked-down hardware ports, and routine inspections can greatly reduce physical fraud risks and protect both the machine and its network connection.

Securing ATMs inside and out

ATM security isn’t just about networks and software. It also comes down to protecting the physical machine. Criminals often go after easy targets, like machines in isolated spots or those without basic security features. That’s why operators need to think about both the digital and physical sides of security.

Simple changes can go a long way. Placing ATMs in well-lit, busy areas helps discourage tampering. Adding reinforced enclosures, anti-skimming devices, and visible cameras adds another layer of protection. Remote monitoring makes it easier to catch problems early without needing to be on site.

When you combine these tools and tactics, you’re not just protecting transactions, you’re making the machine harder to target in the first place. That kind of layered security doesn’t just respond to threats, it helps prevent them.

About Chris Baird

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