By ATMs continue to play a vital role in global finance, providing access to cash in an increasingly digital world. But as the financial ecosystem evolves, so do the methods used by criminals targeting these machines. From data theft to remote attacks, ATM fraud has grown more sophisticated—and more dangerous.
In 2024, a staggering 84.1% of all ATM-related incidents were linked to fraud. Common tactics included skimming, card theft, and jackpotting—each designed to exploit weak points in connectivity and security. In response, many operators are now embracing IoT technologies to help secure these vulnerable endpoints.
Chris Baird, CEO of OptConnect and a former ATM technician, emphasizes the importance of a strong network foundation. “Operators, especially those with machines outside their direct control, must implement layered security. That process begins with a secure, reliable connection,” he says.
Criminals often target ATMs connected to unsecured or poorly managed networks. Without adequate protections, these machines can be infiltrated to extract data, install malware, or force unauthorized cash withdrawals. Baird explains that a properly managed IoT network provides essential safeguards—encrypting data, limiting access, and enabling real-time monitoring for unusual activity.
But connectivity does more than just protect data. Uptime is a critical, and often overlooked, aspect of ATM safety. Machines that go offline are more vulnerable to tampering. According to Baird, “Criminals prefer ATMs that are disconnected. When systems go dark, it’s easier to manipulate hardware or install skimming devices without detection.”
Maintaining a secure IoT connection helps ensure that machines stay online and visible. Real-time monitoring allows operators to detect issues quickly and intervene before damage occurs. A constant digital presence acts as both a deterrent and a response mechanism.
Still, technology alone doesn’t offer complete protection. Baird highlights the need for well-trained personnel. “Human oversight remains essential. When staff are trained to recognize and respond to anomalies, they can catch things that automation might miss. It’s about building a defense that combines smart tech with smart people.”
As ATMs become more connected and intelligent, the demand for strong encryption grows. Every piece of data—whether it’s a card transaction or a software update—must be protected from interception or tampering. This layer of digital protection is only one part of the puzzle.
Physical security is just as crucial. Isolated ATMs without surveillance or protective casing are easy targets. Baird advocates for a comprehensive approach that includes reinforced enclosures, anti-skimming hardware, and surveillance in high-visibility areas. “Positioning machines in well-lit, busy locations can make a big difference,” he adds.
Remote monitoring tools also allow operators to oversee machines without being on site. This means faster response times and fewer blind spots. When combined with physical security enhancements and a strong digital backbone, this approach creates a robust system that’s harder to breach.
Ultimately, defending ATMs requires a multi-layered strategy. Secure IoT connectivity, continuous monitoring, employee training, and physical deterrents must work together. It’s this combination of technology and vigilance that offers the best chance of staying ahead of modern ATM threats.