Banks struggle against ATM bombings

Banks across Australia and Europe are struggling to prevent ATM bombings or identify a technology to reduce the attacks, according to Westpac.

While Westpac claims it has a handle on phishing attacks against its ATM software, it admits it is still at risk from ATM bombings that ripped across Sydney earlier this year and in late 2009, because the industry has failed to identify effective counter-measures.

Efforts from European banks have produced mixed results, according to Westpac head of crisis and security management Paul Maihi.

"In Europe, there has been some action taken that reduced crime, but there has not been one real reason why that is. In fact, in some countries with a big focus on ATM security, [ATM] crimes are still increasing," Maihi said at the Security 2010 conference in Sydney yesterday.

"We are still in the analysis phase to find a solution that is relevant for Australia.

"We reckon we can fix one area, but when we do we expose another."

Bank security chiefs, police and cash transit officers are thrashing out ideas with the Australian Bankers Association, but it is unknown whether an effective solution would rely on new technology or improvements to law enforcement.

They have also worked with the NSW Police Robbery and Serious Crime Squad to mitigate ATM bombings.

Westpac received about 100 attacks against its ATMs last year. At the conference, Maihi gave one example of an attack against Westpac where thieves stole $11,000 when they used a gas bomb and caused about $400,000 worth of property damage.

Maihi told an audience that the industry has a handle on online security threats, which he described as "old threats done in a different fashion".

Westpac also cut the number of armed hold-ups from 38 in 2003 to three last year, thanks to multimillion-dollar investments in physical security such as CCTV and screens, changes to guard strategies and improvements to law enforcement response.

There were some 47 robberies against Australian banks last year, down from a peak of more than 1300 in 1980.

Maihi said he spends 80 per cent of his time redefining the "value proposition" of security for the bank.

Earlier this year, an ATM vendor issued a patch to prevent hackers from hijacking the machines remotely and triggering them to pump-up cash.