A total of 192 ATM malware and logical attacks were reported across Europe in 2017, an increase of 231 per cent from 2016, new research from the European Association for Secure Transactions (EAST) has found.

Some 189 of the attacks were logical attacks where equipment typically referred to as a ‘black box’ is used to send dispense commands directly to the ATM cash dispenser in order to cash-out the ATM.

The use of malware for cash-out was seen for the first time in Western and Central Europe with 3 such attacks reported by two countries. Related losses were up 230 per cent, from €0.46 million to €1.52 million.

Overall payment terminal related fraud attacks fell 11 per cent when compared with 2016, driven by a 23 per cent decrease in card skimming incidents (down from 3,315 to 2,556 incidents). This is the seventh successive year that the number of skimming incidents has fallen and the number of incidents reported in 2017 is the lowest since EAST first began gathering data in 2004.

ATM related physical attacks rose 21 per cent year-on-year to 3,584 incidents. Within this total ATM explosive attacks (including explosive gas and solid explosive attacks) were up nine per cent (up from 988 to 1,081 incidents). Losses due to ATM related physical attacks were €31 million, a 37 per cent drop from the €49 million reported during 2016. Part of this decrease is due to the fact that one major ATM deploying country that used to report this data is currently unable to do so.

The average cash loss for a robbery is estimated at €16,899 per incident, the average cash loss for a ram raid or burglary attack is €12,804 and the average cash loss per explosive or gas attack is €12,591. These figures do not take into account collateral damage to equipment or buildings, which can be significant and often exceeds the value of the cash lost in successful attacks.

“The use of malware, such as Cutlet Maker, to cash-out ATMs has been around for some time but has not been reported in Western or Central Europe until 2017,” noted EAST Executive Director Lachlan Gunn.

“Early indications are that such attacks are continuing this year, although the recent related arrests announced by Europol are encouraging.”

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