LEGAL


Protecting Your Banks From ATM ‘Smash and Grabs’ By Keith Thornburg, Vice President and General Counsel


MBA has received reports of an increasing number of automated teller machine “smash-and-grab” crimes, both from MBA member banks and state banking associations. Perpetrators of these crimes typically use stolen construction equipment or heavy-duty trucks and chains to rip apart ATMs to access cash canisters. In some instances, the ATM will be removed to a different location where it can be dismantled. Criminals also crash through windows and walls to access ATMs placed inside buildings.


Many ATM smash and grabs are executed by organized criminal gangs. Individuals also have been influenced by TV news and YouTube videos, and they copy this criminal activity.


In 2020, the Texas Bankers Association commissioned an ATM task force to: • review these crimes • engage bank regulators and law enforcement to increase crime awareness and information sharing


• strengthen stakeholder relationships • study deterrents and mitigating solutions • explore machine protective measures, placement and designs • evaluate the insurance impact for banks experiencing these losses


Many actions have resulted from TBA’s effort, including enhanced criminal code changes to address ATM crime. MBA’s legislative affairs team and legal counsel have draſted Missouri legislation similar to Texas. In our discussions with Missouri bankers, we have discovered local prosecutors have had difficulty appropriately charging ATM smash-and-grab crimes in a manner that reflects the severity of these crimes, not only in the loss of money and equipment but the loss of critical financial services infrastructure in our communities.


Enhanced criminal code provisions will deter these crimes, protect community access to critical financial services infrastructure, reduce financial losses and aid prosecutors by clearly defining this crime for charging purposes. We hope to obtain passage of these criminal code enhancements to deter these crimes and to protect our members and their communities.


What can bankers do? If your bank and community has been victimized by an ATM smash and grab, please notify MBA’s government affairs team about the incident and the status of investigation and prosecution. • Review your ATM security and related procedures. Tis includes visiting with your ATM vendor and insurance carrier. ATM smash and grabs require focus on common- sense physical security measures.


• Maintain a strong relationship with local law enforcement not only for responding to crime but also for actively detering and preventing attacks.


• Evaluate placement of ATMs, including bolting the machines to concrete, ensuring the location is well-lit and that views around the machine are not obstructed.


• If an ATM is in an interior location, it also should be bolted securely. Avoid placing ATMs near windows and doors.


• Using security bollards near ATMS or ATM safes can be effective in deterring smash and grabs.


• Reinforce ATMs or update enclosures to harden the machine. Criminals count on being able to breach or remove the ATM within three minutes.


• Evaluate security camera placements to capture images of the vehicles, equipment and perpetrators.


• Consider installing motion sensors in the ATM and GPS trackers in the cash cannisters and ensure these security systems are always activated.


• Service machines on unpredictable schedules. • Work with employees and neighboring businesses and residents to watch for and report suspicious activities. Criminals typically scout the ATM and surroundings within a day or two of executing the crime.


• Consult your insurance provider as smash-and-grab crimes result in substantial loss of money and property damages.


MBA looks forward to working with bankers and the members of the Missouri General Assembly to implement legal and other measures to deter ATM crimes.


THE MISSOURI BANKER 9


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