Interactive Teller Machines (ITMs) are increasingly used by credit unions to save time, enhance convenience, and boost efficiency. They function like ATMs, offer video support from live tellers, and allow for self-service. However, without proper security, ITMs can attract fraudsters.

Benefits of ITMs

ITMs combine touch screens and video technology, providing credit unions with:

Improved Efficiency: Video tellers can serve multiple ITMs or branches, reducing staff requirements.
Lower Costs: ITMs lower member service costs and can operate anywhere, reducing staffing needs.
Reduced Branch Costs: ITMs suit smaller regions or dispersed members, reducing the need for large physical branches.
Extended Hours: ITMs enable services outside regular branch hours.

Security Risks of ITMs

Fraud at ITMs often happens during off-hours, including:

Skimming: Fraudsters steal card data from the magnetic stripe to create counterfeit cards.
Jackpotting (Physical): Fraudsters tamper with machines to access funds, often using force or master keys.
Jackpotting (Remote): Malware is used to take control of ITMs remotely.
Account Takeovers: Fraudsters trick members into giving up login credentials, including two-factor authentication codes.
Physical Attacks: ITMs, holding more cash than ATMs, are vulnerable to break-ins, theft, and smash-and-grab attacks. Methods include cutting tools, dolly transport, or even explosives executed in a matter of minutes, allowing criminals to quickly access or steal cash from the machines.

For more information and risk mitigation tips, read the full alert at: Trustage.com (Password and log-in required) select “Business Protection Solutions” and then click on “Business Protection Resource Center” and go to “Risk Alerts Library.”