The European ATM Security Team (EAST) discovered that ATM hackers are now drilling holes in ATM machines near the card reader and installing electronic devices which tap into the “read head” of the magnetic strip reader to steal information. Normally, thieves would “skim” the information on the magnetic strip through an “overlay” device that would actually read the magnetic strip outside the machine when an unwary customer would insert his or her card.
Instead, these new devices work like a wiretap inside the machine and read the information as it passes through the head of the reader. The hole is then covered up with a decal after the device is removed with the stolen data. EAST still classifies the crime as “skimming” even though “‘the the magnetic stripe [on the customer/victim’s card] is not directly skimmed as the data is intercepted.’”
Cameras are still used by thieves to steal PIN numbers; therefore, EAST suggests customers cover the keypad with their hand before entering their PIN.