ATM Theft Is Not Uncommon |
| This year BancInsure has paid several claims involving theft of or burglary of
automatic teller machines ("ATMs") not located on the bank's premises. The
incidents were widespread geographically and occurred in large metropolitan areas as well
as small towns with losses ranging from $13,000 to $20,000. The thefts or burglaries are
perpetrated late at night or very early in the morning, so fortunately, no bank customers
were involved. One popular way to attack an ATM is to attach a strong chain to it or around it, pull it from its location with a truck or automobile, transport it to a remote area and then use a cutting torch to access the currency compartment. In most instances the removal of the ATM severed the communications line with the processing center. The processing centers notified local police or sheriff's departments promptly. However, even though the police or sheriff's units arrived quickly, there were no signs of the culprits. In reviewing potential sites for new off premises ATMs or the security features in place at current off premises ATMs, banks should consider several factors. Two major factors are location and lighting. Off premises ATMs should be located in high traffic areas and well lit. The view of the ATM from the street should not be blocked by buildings, fences, walls, shrubbery, etc. Not only should the ATM be well illuminated, the area around it should be also. This not only lessens the likelihood of an attack on an ATM, but also aids in protecting your customers from robbery and potential bodily harm. In addition, it makes good business sense in order to encourage customer usage. Another excellent security measure would be a security camera to monitor the area around the ATM. As to the ATM itself, it should be anchored or secured in such a way that makes it difficult to remove the machine from its location or to burglarize it. While these measures do not guarantee attacks on ATMs will not occur, they will discourage them. BancInsure offers coverage for losses of currency in off premises ATM burglaries or thefts attached by rider to the Financial Institution Bond. BancInsure has become a leading writer of Financial Institution Bonds in the United States by providing a sound, stable market, excellent service and fair claims treatment. If you would like to learn more about BancInsure's Financial Institution Bond or other coverages, contact your state BancInsure marketing representative. |
