Cardtronics Inc. is defending the security of its ATMS following a breach of machines it owns that are housed in 7 - El e ven 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 company, the world's largest ATM ISO based on machines owned and managed, issued a statement last week saying its ATMs are secure.
"All of the ATMs owned or operated by Ca rd t ronics have encrypted PIN pads, as well as triple data encryption, as re q u i red by the va rious electronic funds transfer network s," Ca rdtronics said.
Cardtronics' processing platform complies with PI N - s e c u rity requirements established by the Payment Card In d u s t ry Da t a Se c u rity Council and has successfully completed PCI PIN- security field review by major networks, the company said.
Cardtronics issued the statement after court documents re vealed Citibank executives told the FBI Feb. 1 that thieves had breached a third- party server that processes ATM withdrawals at 7-El e ven stores. Citibank declined to name the processor. Cardtronics bought 7-El e ve n's 5,500 ATMs in July 2007 for $135 million, but Citi brands the ATMs.
A 7-El e ven spokesperson said the company would not comment
about the breach.
Citi, which is based in New York, identified all of the compromised account numbers and, according to the FBI, bank officials said thieves used the stolen data to create counterfeitcards use to make hundreds of fraudulent ATM withdrawals all
over New Yo rk in February. The haul came to $750,000.
Cardtronics added that it is "not invo l ved in this criminal pro secution
and, therefore, does not anticipate that it will issue anystatements with respect to this case or the alleged conduct of the defendants in this case." Cardtronics owns or manages32,475 ATMs.