SAN ANTONIO – While the term “jackpotting” sounds like it should be a win, it’s actually costing local banks and other ATM owners tens of thousands of dollars.
According to the U.S. Secret Service, jackpotting involves criminals using malicious software and/or computer hardware to launch a cyberattack on ATMs. They are then able to manipulate the machines to spit out thousands of dollars.
“The machine will just continue to dispense until it’s drained. It could be 97 dispenses, it could be 70,” said Laura Ward, chief risk officer for Firstmark Credit Union.
Ward said she knows firsthand how the crime works after two branches of the credit union, one on Fredericksburg Road in San Antonio and another in New Braunfels, were hit recently.
“These days we see all kinds of crimes, but this is a particularly different kind,” she said. “The ATMs are really being preyed upon. We call it an attack because it is an attack.”
The attacks, Ward said, happened over the course of several hours in the middle of the night. She reviewed surveillance video of the crimes that showed a group of people working together.
Ward said initially, one group will arrive and tamper with the bank machine. Later, others will manipulate the device or software remotely.
Finally, more people will arrive to collect the cash as the machine dispenses it.
“It’s very organized, and that’s one of the things I think is really critical to understand,” Ward said.
The Secret Service first warned financial institutions about jackpotting in a 2018 post on the agency website. However, Ward said the crime first sprang up worldwide in 2010.
Earlier this week, two people were arrested in Houston, suspected of being part of a jackpotting group with potential ties to Russia.
While Ward did not disclose how much money was taken from Firstmark, she did say the crime can take a heavy financial toll on the banking institution.
The credit union has been working with local, state and federal authorities since it was attacked. She said she wants to raise awareness about it to help combat the problem.
In the meantime, Firstmark also is working to fortify its ATMs against this type of crime. Last weekend, it shut down all of its money machines during upgrades.
Ward noted that the hacking did not affect any member accounts or data.
However, she said Firstmark is closing its ATMs at night for now to physically protect property and people.
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