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Cardtronics Inc. is defending the security of its ATMs following a recent breach of machines it owns housed in 7-Eleven Inc. convenience stores. The breach has led to nearly $1 million in fraudulent withdrawals from ATMs throughout New York, according to court documents. The Houston-based independent sales organization issued a statement last week saying its ATMs are secure. "All of the ATMs owned or operated by Cardtronics have encrypted PIN pads as well as triple data encryption as required by the various electronic funds transfer networks," Cardtronics said. "Additionally, Cardtronics' processing platform complies with the PIN-security requirements established by the payment card industry and has successfully completed PCI PIN security field review performed by major networks." Cardtronics issued the statement after court documents disclosed that Citibank executives told the FBI in February that a Citibank server that processes ATM withdrawals at 7-Eleven stores had been breached. Cardtronics purchased 7-Eleven's 5,500 ATMs in July 2007 for $135 million. Citibank, which is based in New York, identified all of the compromised account numbers. Thieves used the compromised data to produce counterfeit cards that were used in February to make hundreds of fraudulent ATM withdrawals in New York worth $750,000, according to the FBI.

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