Rising Crime: ATM Jackpotting in Western North Carolina
FLETCHER, N.C. (WLOS) — A growing concern among financial institutions in western North Carolina is the sophisticated crime known as "jackpotting." Despite its name suggesting a stroke of luck, this illicit activity is creating significant financial losses for banks and credit unions across the region. A recent investigation by News 13 has unveiled the details surrounding this crime, highlighting the perpetrators involved, the red flags residents should be mindful of, and the protocols for reporting any suspicious occurrences.
A Safe Community Under Siege
Police Chief Daniel Terry of Fletcher emphasizes the community’s reputation for safety. Known for its low crime rate—reportedly the lowest in 17 years—Fletcher has recently experienced an influx of transient crime. Travelers passing through have targeted local resources, including ATMs. This pattern became apparent 15 months ago when a group of cybercriminals compromised the ATM at the United Federal Credit Union on Hendersonville Road.
While specific details remain classified, Chief Terry shared that this case was transferred to the U.S. Secret Service’s Cyber Fraud unit, which investigates similar incidents across multiple states, including Colorado. The crime is characterized as “jackpotting,” where illicit actors gain access to ATMs and force them to dispense cash indiscriminately.
Understanding Jackpotting
Kelli Burgin, an assistant professor and cybercrime expert from the Carolina Cyber Center at Montreat College, describes jackpotting as a method where cybercriminals manipulate ATMs to release all stored cash. In one instance in Fletcher, criminals made off with nearly $42,000 from a single machine. The situation escalated when an alarm was triggered during the burglary, but oddly, the alert was subsequently canceled, leading to questions about internal safety protocols.
In a separate incident, thieves tampered with the hard drive of an ATM at Telco Credit Union on Airport Road, using substances like mineral oil and wax to obscure cameras. Fortunately, no cash was stolen from that machine, as it was already empty.
How the Crime is Committed
Burgin notes that jackpotting is often a "crime of opportunity," with perpetrators scouting for poorly lit ATM locations placed out of direct sight. Their modus operandi frequently involves social engineering tactics to blend in, thereby reducing the likelihood of detection.
The machines’ cash vaults are designed to be secure, but the ATMs’ computer systems can be easier to breach. Criminals have been known to impersonate technicians, inserting malicious devices that let them remotely access the ATM. This might include something akin to a “black box” or malware, with the end goal of heightening their control over the machine.
According to Burgin, criminal networks often have international connections, with recent reports suggesting affiliations with Russian cyber groups. Although jackpotting incidents do not directly impact consumer accounts—often covered by insurance—there is an overarching cost to the banking system that ultimately affects customers.
Local Authorities Take Action
Chief Terry emphasizes the importance of vigilance in the face of these evolving threats. He highlighted that the U.S. Secret Service’s Cyber Fraud Task Force recently organized a webinar aimed at educating law enforcement and local entities about current fraud trends.
According to reports, there have been four instances of jackpotting in Western North Carolina, alongside a total of 41 cases identified throughout the state. Authorities advise the public on the importance of reporting any signs of tampering. "If you notice anything unusual, reach out to your bank or local police," said Burgin.
However, other forms of bank-related fraud have also surfaced in Fletcher. The police chief recounted an incident from April 2024 when officers apprehended a group of fraudsters using counterfeit IDs to drain funds from local banks. This particular crime involved photographing homeless individuals, using their images on forged identification to fleece funds from unsuspecting account holders.
Staying Vigilant Against Fraud
Both Chief Terry and Burgin note the critical nature of public awareness regarding ATM skimming—an insidious technique where devices are fitted to machines to capture user data, including card information and PINs. This type of fraud can lead to substantial financial losses for individuals and institutions alike.
The U.S. Chamber of Commerce has provided several valuable tips to help consumers safeguard themselves against potential fraud. Some recommendations include:
- Unique Passwords: Users should create distinct passwords for different accounts to mitigate the risk of widespread breaches.
- Two-Factor Authentication: Implementing this feature provides an added layer of security, requiring two forms of verification.
- Software Updates: Regular updates ensure that security vulnerabilities are patched.
- Banking Apps: Mobile applications are generally more secure than traditional online banking.
- Account Monitoring: Regular account checks can alert users to any unauthorized activities.
Additionally, the American Bankers Association recommends practicality in preventing ATM fraud:
- Always be conscious of one’s surroundings, especially after dark.
- Have your ATM card ready before approaching the machine.
- Visually inspect the ATM for any suspicious devices.
- Shield your PIN entry against potential onlookers.
A Call for Community Awareness
The growing trend of ATM jackpotting highlights the need for heightened awareness both in financial institutions and within the community. By keeping informed and vigilant, residents in Fletcher and surrounding areas can actively contribute to combating theft and ensuring their safety against evolving criminal tactics. Chief Terry’s call to action emphasizes the importance of citizens being on the lookout for anomalies, ensuring that their community can remain one of safety and trust.