Video surveillance and its role in ATM fraud prevention

Dec 14, 2023

Video surveillance and its role in ATM fraud prevention

Bank automatic teller machines (ATMs) allow us to carry out transactions quickly and conveniently, although we have all felt vulnerable at times when using them. These spaces are located in the middle of the street and, if they are not properly protected, the risk of crime is multiplied.

If you read our article on bank security, you will already know that video surveillance plays an essential role in preventing fraud and theft in financial institutions. A role that becomes even more evident in the case of ATMs…

And now, thanks to innovative ATM security solutions like the ones we created at Scati, suspects can be detected before they commit crimes, alarms can be verified in real time and protocols can be activated in an automated way.

In this post we explain why it is so important to have a good intelligent video surveillance system if you want to prevent fraud at your bank ATMs.

Automated Teller Machine (ATM) crimes

From physical cash theft to the use of skimming devices to copy card information, to hacking systems to steal banking data: ATM security crimes are a growing problem, and are currently affecting both users and financial institutions.

For banks and authorities they are a constant concern, so there is no choice but to try to implement effective and innovative security measures, such as intelligent video systems. In addition, to reduce the incidence of these crimes and protect our financial security, it is essential to promote awareness campaigns.

Video surveillance in banks

What would financial institutions be without video surveillance?

Video surveillance systems have been dealing with fraud prevention in banks since the analog era, when they relied on analog cameras connected to video recorders.

At that time, image quality was quite limited and so was storage capacity, but the advent of digital technology gradually changed everything.

Today, most banks have intelligent video systems, which use Artificial Intelligence and machine learning to detect suspicious behavior, recognize faces, read license plates and a host of other applications, all of which are essential for ATM security.

Innovation to increase safety

Thanks to the commitment to innovation in this sector, intelligent video surveillance is now a reality, and it is undoubtedly the most effective way to prevent fraud at ATMs.

What are the key points of this innovation in ATM security systems? We explain them to you:

  • Artificial Intelligence (AI) and machine learning. AI now allows us to analyze each video in real time, identifying suspicious behavior or unusual activity in an automated way, and helping us to respond quickly to potential threats.
  • Cloud Recording and Big Data. Thanks to the ability to store large amounts of video data in the cloud, we can detect trends and patterns that may not be obvious at first glance. In addition, iCloud storage is first and foremost secure and efficient, and gives us remote access to images at any time.
  • Integration with other security systems. Intelligent video systems integrate with alarms and access controls, enabling us to provide a more coordinated and effective security response.

Types of ATM fraud

The types of ATM fraud are varied and constantly evolving, as fraudsters seek new strategies for deception.

Among the most common are:

  • Skimming. Criminals install devices in the ATM capable of copying information from the magnetic stripe of a card while it is being used.
  • Cash trapping. In this case, the fraudsters place a device in the cash exit slot that traps the money we take out, in order to steal it later.
  • Card trapping. In this method, a device is used to trap our card in the machine, forcing us to abandon it.
  • PIN capturing. Often combined with skimming, this technique captures a user’s PIN using a hidden camera or a fake keypad at the ATM, installed over the original one.
  • Transaction Reversal Fraud (TRF). Fraudsters manipulate the ATM to make us believe that a transaction has not been completed, which causes the ATM to reintegrate the money, even though the user’s account has already been weakened.

Video systems to prevent fraud

As we have mentioned, fortunately there are many solutions for the prevention of these frauds, and all of them involve the use of video systems.

In fact, the intelligent video surveillance systems we offer at Scati are ideal for increasing the security of ATMs.

Video surveillance solutions in banks

What exactly are our ATM video surveillance solutions? We summarize it for you:

  • Our pinhole cameras are installed inside ATMs and capture clear and detailed images.
  • All these images go into Scati Cash, a software that integrates the captured videos with the ATM transactions, allowing you to monitor and verify all operations in an easy, fast and centralized way.
  • Thanks to different sensors and transactional monitoring, this solution receives anti-skimming alerts and fraud reports from the ATM itself. In this way, you can visually verify any unusual records and achieve fraud prevention.
  • The information is collected by our Business Intelligence tool (SCATI RECKON), which allows for improved decision making by all employees of the financial institution.

If you need a proactive strategy for fraud prevention, remember that you can contact our team and we will propose you a tailor-made solution, adapted to your needs. Don’t wait any longer to protect your financial institution!

Discover Scati Cash and reduce fraud at your ATMs by up to 90%.