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NAC NAC is dedicated to the needs of independent ATM owners, operators and
suppliers. The not-for-profit association represents members in an array of
challenges issues and initiatives. "Given the competitive nature of the nation's largest
banks, FICO's card fraud data makes sense," Renard said. "The data is skewed
in much the same way as big banks impose egregious penalties on their own
FICO on ATM cardholders each time they use a competitor's ATM."

Debatable data points
fraud FICO additionally stated, "The number of payment cards compromised at U.S.

ATMs and merchants monitored by FICO rose 70 percent in 2016. The number
of hacked card readers at U.S. ATMs, restaurants and merchants rose 30 percent
he National ATM Council in 2016." Renard called FICO's statement on compromised payment cards
Inc. asked Fair Isaac and misleading and biased against retail (nonbank) ATMs. Among his concerns
Co. (FICO) to substan- are:
T tiate its recent claims of • Inconclusive fraud origination points: "FICO refers to card
escalating debit card fraud at non- 'compromises,' without identifying where fraud originated and where
bank ATMs. In a statement issued card data was stolen," Renard stated. "Based on FICO's own descriptions,
March 27, 2017, FICO asserted that 'compromise' could encompass the use of cloned and counterfeit cards
debit card fraud rose 546 percent in at retail ATMs and not the skimming theft of card data. This is a big
2016, with 60 percent of on-site fraud distinction, with a big difference."
occurring at nonbank ATMs. The
data contradicts NAC's 2016 survey, • Incomplete metrics: "While there may be a percentage increase in card
which found few skimming devices fraud at retail ATMs, the absolute number of skimming incidents and
installed in retail ATMs, NAC repre- card data theft is still miniscule in comparison to the skimming that
sentatives stated. takes place at the bank ATMs," Renard said. "When you start at zero,
which is where card skimming at retail ATMs has stood historically,
"ATM terminals in brightly lit, well-
populated retail stores are far less
likely than bank ATMs to be targets
of card data theft and skimming,"
said NAC Board Chairman George
Sarantopoulos. "Outdoor, on-prem-
ises bank ATMs are typically left
unattended and out of sight of bank
personnel, making them the peren-
nial targets of choice for card and PIN
data theft."

Bruce Wayne Renard, NAC Execu-
tive Director, added, "Last year, when
FICO issued a similar press release
about nonbank ATM fraud volumes,
NAC surveyed over 160 ATM compa-
nies. Nine out of ten respondents nev-
er found a skimming device on their
ATMs, and more than 50 percent had
been in the retail ATM business for
more than 10 years."
Contrasting perspectives, cultures

FICO is recognized as an interna-
tional authority on predictive analyt-
ics, credit scoring, and business rules
management and optimization. Pub-
licly traded in the New York Stock
Exchange, the company is 20 percent
owned by leading banks, including
Bank of America Corp., JPMorgan
Chase & Co. and Wells Fargo & Co.
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