Hackers Steal Millions From European ATMs Using Malware That Spit Out Cash

ATM hackers who long relied on tactics of stealing payment card numbers and online banking credentials to steal millions are now targeting the bank itself to steal cash directly from the machines.

Earlier this year, a gang of cyber criminals infected several ATMs with malware in Taiwan and Thailandthat caused the machines to spit out millions in cash, and the gang members then stood in front of the infected ATMs at the appointed hour and collected the money.

Now, the FBI has warned U.S. banks of the potential for similar ATM jackpotting attacks, saying that the agency is "monitoring emerging reports indicating that well-resourced and organized malicious cyber actors have intentions to target the U.S. financial sector."

ATM jackpotting is a technique used to force automated teller machines to spit out cash.

According to Russian cyber security firm Group-IB, cyber crooks have remotely infected ATMs with malware in more than dozen countries across Europe this year, which forces machines to spit out cash.

The world's two largest ATM manufacturers, Diebold Nixdorf and NCR Corp., said they were aware of the ATM attacks and had already been working with their customers to mitigate the threat.

The cyber criminals have been targeting ATMs for at least five years, but the latest hacking campaigns mostly involved small numbers of ATMs due to the fact that hackers required physical access to the machines to collect cash.

Group-IB did not name the banks targeted in the campaign but said the victims were located in Armenia, Bulgaria, Estonia, Georgia, Belarus, Kyrgyzstan, Moldova, Spain, Poland, the Netherlands, Romania, the United Kingdom, Russia, and Malaysia.

Both Diebold Nixdorf and NCR said they had already provided banks with information on how to thwart the attack, Reuters reported.

"We have been working actively with customers, including those who have been impacted, as well as developing proactive security solutions and strategies to help prevent and minimize the impact of these attacks," said Owen Wild, NCR's global marketing director for enterprise fraud and security.

The disclosure of the new campaign comes months after two large ATM hacks, wherein hackers stole $2.5 Million from Taiwan's First Bank and $350,000 from Thailand's state-owned Government Savings Bank.

While Group-IB believes the attacks across Europe were conducted by a single criminal group, dubbedCobalt, the FBI believes the malicious software used in the attack could be linked to the Russian ATM gang known as Buhtrap, the Wall Street Journal reported.

However, citing the tools and techniques used by both groups, Group-IB believes that Cobalt is linked to Buhtrap, which stole 1.8 Billion rubles ($28 Million) from Russian banks between August 2015 and January 2016.

Massive ATM Hack Hits 3.2 Million Indian Debit Cards — Change Your PIN Now!

India is undergoing the biggest data breaches to date with as many as 3.2 Million debit card details reportedly stolen from multiple banks and financial platforms.

The massive financial breach has hit India's biggest banks including State Bank of India (SBI), HDFC Bank, Yes Bank, ICICI Bank and Axis, and customers are advised to change their ATM PIN immediately.

Hackers allegedly used malware to compromise the Hitachi Payment Services platform — which is used to power country's ATM, point-of-sale (PoS) machines and other financial transactions — and stole details of 3.2 Million debit cards, reports The Economic Times.

Of 3.2 Million debit cards, 2.6 Million are powered by Visa or Mastercard and rest 600,000 work on top of India’s own RuPay platform.

Hacked Debit Cards Reportedly Used in China

It is not yet clear who is behind the cyber attack, but the report adds that a number of affected customers have observed unauthorized transactions made by their cards in various locations in China.

Some banks, including the country's biggest lender SBI, have announced that they'll replace compromised debit cards, while others banks, including HDFC Bank, have urged their customers to change their ATM PINs and avoid using ATMs of other banks.

The extent of damage due to breach also depends on the type of cards customers are using.

Cards which use Magnetic Stripe transmit your account number and secret PIN to merchants in a way that it could make easy for fraudsters to hack them, making these cards easier to clone.

SBI Blocks and will Re-Issue 600,000 Debit Cards

SBI has blocked affected debit cards and will re-issue over 600,000 cards. Here's what SBI CTO Shiv Kumar Bhasin told the publication:

"It's a security breach, but not in our bank's systems. Many other banks also have this breach—right now and since a long time. A few ATMs have been affected by malware. When people use their card on infected switches or ATMs, there is a high probability that their data will be compromised."

Mastercard also denied that its systems were breached, issuing the following statement:

"We're aware of the data compromise event. To be clear, Mastercard's own systems have not been breached. At Mastercard, safety and security of payments are a top priority for us and we're working on the investigations with the regulators, issuers, acquirers, global and local law enforcement agencies and third party payment networks to assess the current situation."

Meanwhile, the Payments Council of India has ordered a forensic audit on the Indian bank servers to measure the damage and investigate the origin of the cyber attack. Bengaluru-based payment and security specialist SISA will conduct the forensic audit.