Innovative ATM Reader Fights Credit Card Skimming

Innovative ATM Reader Fights Credit Card Skimming

August 26, 2014         Written By Lynn Oldshue

America has been fighting to stay ahead of credit card skimming and identity theft. But Diebold, Inc. has developed a new ATM card reader called ActivEdge that may be a revolutionary anti-skimming device.

The secret to ActivEdge’s security is the way it reads credit cards. Instead of reading them from the short side of the card like most card readers, it picks up information from the long side. Using this device may feel unnatural at first, but this simple change prevents most current skimming devices from reading the credit cards that pass through it.

Diebold took this idea one step further by encrypting communication at the ATM’s central processing unit, which prevents identity thieves from tracking data entered in the machine.

ActivEdge also features automatic gate-locking functionality, which prevents the thieves from freeing trapped cards.

According to the ATM Industry Association, skimming-related fraud losses exceed $2 billion annually on a worldwide basis. As Diebold’s Executive Vice President and Chief Innovation Officer Frank Natoli pointed out to ATM Marketplace, “the good guys build a 10-foot wall and the bad guys build an 11-foot ladder.”

“Altering the card orientation has crippling consequences for skimming devices. With ActivEdge, financial institutions will be able to stay ahead of today’s sophisticated devices and fraud attacks.”

The information contained within this article was accurate as of August 26, 2014. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About Lynn Oldshue

Lynn Oldshue has written personal finance stories for for twelve years. She majored in public relations at Mississippi State University.
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