AUSTIN, Texas (12/16/10)--Nearly 90% of consumers surveyed are not familiar with ATM skimming, indicating a need for education about potential threats at ATMs, according to a Wincor Nixdorf, an information technology solutions provider for retailers and retail banks. The survey also learned that all things being equal, 63% of consumers polled would switch to another bank if it offered a more advanced ATM security. The Austin, Texas-based company, which offers anti skimming services and other advanced security services, polled U.S. consumers about their knowledge and preferences and about trends around ATM security. Most polled were unaware of popular fraud tactics such as ATM skimming, where con artists place a device at the card entry slot on an ATM to steal personal identification numbers and card information. Skimming costs roughly $350,000 in monetary losses a day and is occurring five times more frequently this year, Wincor Nixdorf, said, citing Secret Service statistics. While 89% reported being a victim of an ATM fraud, nearly all expressed concern about fraud at the machines. "The ATM has become the primary customer touch point for many financial institutions, so it is critical that retail banks offer the most sophisticated security software to protect their customers," said David Hadesty, vice president of product management for Wincor Nixdorf's U.S. banking division. "There is real opportunity for banks to leverage the ATM channel to grow revenue, increase customer retention and create the optimal banking experience for the user," said the survey report's executive summary. "Consumers are truly craving automation in their financial transactions--preferring any feature and functionality that saves time and money." It also said financial institutions "need to embrace self-serve, not teller, interactions, and that institutions that disregard the growing preference for the self-serve model are risking losing customers. Other findings:
* Consumers surveyed prefer to interact with an ATM than a teller; * More people preferred to make their deposits at an ATM than with a teller; * Cash and check deposit functionalities were key to the ATM; * Most with envelope-less deposit capability said the capability is important, and most in this group said they would use the feature at least three times per month.
The company polled 200 U.S. consumers ages 16 to 64. Seventeen percent of the respondents were credit union/virtual bank members/customers, 63% were customers of large national banks and 20% of regional/community banks.