NZ Consumers Look for More Secure ATMs

NZ Consumers Look for More Secure ATMs

Bank of New Zealand ATMs fitted with anti-skimming devices show rise in transactions

AUCKLAND, New Zealand – The automated teller machine (ATM) is one of the most popular and trusted banking channels, but research shows 90 per cent of customers would feel more secure using machines fitted with security measures such as anti-skimming devices.

The finding comes from a national survey of 450 consumers conducted by Galaxy Research for NCR Corporation in New Zealand, which also discovered that nearly nine out of 10 consumers have taken security precautions at some time to protect themselves against the possibility of ATM fraud.

In the wake of recent media reports of card skimming and personal identification number (PIN) theft at ATMs, 87 per cent said they had taken some simple precautions when using an ATM and two thirds (66 per cent) now always take some type of anti-fraud precaution.

These included: covering the keypad with their free hand while entering their PIN; checking to see if someone was standing nearby who might be watching them enter their PIN; and checking to see if there was anything suspicious attached to the ATM. A fifth (21 per cent) of consumers took precautions some of the time, while just 13 per cent said they took no precautions.

The results suggest that consumers’ awareness of financial fraud has been heightened by recent incidents and they are heeding the advice of banks and other financial institutions to take simple precautions in order to keep ATM banking secure.

One financial institution to bear out the survey’s findings about consumers’ security preferences is Bank of New Zealand. Since becoming one of the first banks in the country to install anti-skimming Fraudulent Device Inhibitors – known to Bank of New Zealand customers as ‘green sleeves’ because of their distinctive appearance – transactions have increased across its network of more than 400 machines.

“We have seen increased activity on the network, which is very pleasing,” said Shona Bishop, general manager of marketing for the Bank of New Zealand. “The majority of the 100,000 people who use our machines every day have accepted the anti-skimming device and are reassured by our ongoing commitment to ATM security.”

NCR’s Fraudulent Device Inhibitor makes it almost impossible for a card-skimming device to be placed on or around the ATM card reader.

“What is also clear from the survey is the very high level of trust that consumers place in the ATM channel,” said Bishop. “They share our determination to keep ATM banking secure by being vigilant and taking some simple, common-sense precautions.”

Despite recent incidents of fraud, the ATM retained its position as one of the most popular and trusted banking channels for New Zealand consumers. According to the poll, 89 per cent of New Zealanders use them (rising to 95 per cent of 18-24 year-olds) and 82 per cent of adults trust them. More than half of young Kiwis under 24 say ATMs are the main way they withdraw cash.

Commenting on the poll, vice president for the country’s largest supplier of ATMs said that New Zealand was leading the world in its deployment of ATM security measures such as the Fraudulent Device Inhibitor and this would help maintain the extremely high level of trust consumers place in ATM banking.

“Bank of New Zealand is the first financial institution in Asia to deploy this anti-skimming device so extensively and across such a large ATM network,” said Ross Checkley, vice president of NCR’s Financial Solutions Division in the South Pacific. “BNZ, along with other New Zealand banks, is taking the initiative to ensure that the thousands of self-service transactions that take place every day continue to do so without incident.

“For our part, we have recently launched NCR Secure™ in New Zealand and Australia – a broad portfolio of fraud-fighting solutions and strategies to stay at least one step ahead of the criminal element and maintain consumer confidence,” said Checkley.

Just two of the fraud-fighting solutions in NCR’s arsenal of ATM security offers are the Fraudulent Device Inhibitor and Intelligent Cash Protection, a note degradation system that renders cash in the ATM safe worthless by staining the banknotes (and the criminals’ skin) in the event of a ram raid or other physical attack.

Security tips for ATM consumers

• Be aware of who is around you when you use an ATM – is someone trying to look over your shoulder when you enter your PIN or is there anyone who looks suspicious or makes you feel uncomfortable? Be wary of people offering ‘help’ at the ATM.
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• Stand close to the ATM and shield the keypad with your free hand when you enter your PIN.
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• Before you enter your card, look to see if there is anything that doesn’t look right on the fascia of the ATM – particularly around the card slot, the cash dispense slot and the keypad. With this in mind, it may be a good idea to use ATMs you are familiar with.
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• Report anything suspicious to the nearest bank official or security staff, even it appears to be trivial. Your action could prevent others from being the victim of ATM fraud.
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• Never give your PIN to anyone or write it down.
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• Check your bank statements to be sure there are no unusual transactions.
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Notes to Editors

The following NCR personnel are available in Sydney and Auckland for comment on the findings of the NCR/Galaxy opinion poll, the Fraudulent Device Inhibitor and NCR’s other anti-fraud technology.

• Ross Checkley, vice president of NCR’s Financial Solutions Division in the South Pacific
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• Peter Corkery, NCR account manager for the New Zealand banks
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• Phil Chant, marcoms manager for NCR in the South Pacific
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From BNZ, Shona Bishop, general manager of marketing for the Bank of New Zealand is available to comment on the implementation of the ‘green sleeve’ anti-skimming device and the reaction of consumers. Please call Brenda Newth, PR manager at Bank of New Zealand to arrange.

This study was conducted on the Galaxy omnibus on the weekend of 2-4 June, 2006. A total of 459 individuals were interviewed aged 18 years and over by telephone during this period throughout the north and south islands of New Zealand including Auckland, Wellington and Christchurch. The data was weighted by age, gender and area to reflect the latest New Zealand population estimates.

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