by MaryAnne Colucci, Director, Fraud & Risk at Envisant

Introduced to the U.S. in 2018, ATM “jackpotting” is growing fast, making up 74% of ATM attacks in 2025 (ATMIA).  It involves tricking ATMs into spitting out the cash inside. While it doesn’t directly affect members, “jackpotting” can result in a huge loss for credit unions.

Types of “Jackpotting”

To coerce their “jackpot” from an ATM, scammers may tamper with the physical machine, its software, or network. One type of attack involves connecting a device directly to the ATM computer and telling it to release funds. Fraudsters might also install malware by plugging in a USB to the machine to withdraw large amounts with one card or even drain the safe.

“Man-in-the-Middle” attacks are another form of “jackpotting.” These intercept poorly protected network connections between the ATM and processors or hack into the remote management software, “authorizing” the ATM to dispense funds. Fraudsters will even watch a specific ATM to know when the cash has been put into the terminal, so they get the most bang for their buck.

How to Stop Fraudsters from “Winning a Jackpot” at Your Credit Union’s ATM

The best protection for your credit union’s ATM against this type of fraud combines digital technology and physical impediments.

·       Updated Software & Encryption: Keeping ATMs updated with the latest in software and TLS encryption technology is the best place to start protecting against fraud. Unique encryptions on ATM modems add another layer of protection that can trigger the machine to shut down if the wrong encryption is used. 

• Steel Kiosks & Custom Keys: Most ATMs use the same default door key to the outer case, so placing a unique set on each of your machines makes them difficult to compromise. Kiosks made with reinforced steel and individualized locks also create strong safeguards against unauthorized access.
  
  
• Good Lighting: Well-lit areas make criminals feel more exposed, and less inclined to target an ATM.

 ATM security isn't just about one tactic alone; it requires a combination of encrypted networks, updated software, physical protections, and awareness. Fraudsters are often creative in seeking new ways to circumvent safeguards, so credit unions need to pay attention to the trends, keep ATM software and network encryption updated, and exchange ideas and warnings about criminal attacks to stay protected.

At Envisant, we connect credit unions to a wide range of ATM networks while our dedicated fraud team is here to help defend credit unions and their members against fraud. We also partner with trusted ATM program providers, like Meirtran, who offer the latest in machine security for their customers. To learn more, contact us.

Originally published on CUInsight.