[VIDEO] Explosives Used to Break into Machine during ATM Robbery, Thieves Caught on HD Camera

On August 11, 2017, two criminals drove their SUV up to a Gas Station ATM Kiosk with a plan. They planned to execute an ATM robbery by blowing up the ATM with some sort of liquid explosive. It is clear from this video, it’s not the first time they are attempting this. They are wanted by the FBI. The authorities were very excited to see the quality of our security footage.

Authorities_On_Scene

Authorities at the Crime Scene of the ATM Robbery in San Diego, CA

When you start using explosives on an ATM, you attract a lot of attention. You get the local police, sheriffs, SWAT, the Bomb Squad, ATF, and the FBI involved. That’s a lot of manpower hunting you down.

These guys are wanted by the FBI. It’s not just a local crime.  Is a few grand worth having to hide and run for the rest of your life? I don’t think so.

The suspects think they got away with it. However, as time will tell, and with the help of this HD video, and the enhancement tools Federal Law Enforcement agencies have available, they will most likely do time behind bars for this ATM robbery.  Maybe they will save all the money they stole to pay for their lawyer. They will need it.

I’ve been in the ATM business since 1994. Since then, I’ve helped hundreds of Independent ATM Deployers (IAD’s) start, run, and maintain successful ATM businesses. I’ve personally sold or installed hundreds and hundreds of ATM machines. I currently manage thousands of machines and hundreds of thousands of ATM transactions nationwide and I’ve never, ever seen anything like this.

This location has been a customer of ours for over a decade. We’ve never had any issue until we installed a new kiosk.  While this small kiosk does not appear to be bomb proof, the old kiosk building we used previously onsite was. Unfortunately for us the gas station – car wash is undergoing a remodel and needed to demolish the building, so we had to move the ATM to the other side of the parking lot.

In order not to inhibit the authority’s investigation, we won’t go into the details of what the authorities knew in this article.

However, now that we know all the details we can help others.

So, if you plan to install a kiosk and you are one of our customers (or want to be), please contact our office for some additional help.

We learned an expensive lesson, so we hope to use it to educate our customers.

ATM Depot can certainly help you avoid the same fate. We thought we prepared for every security scenario but they proved us wrong on this one. The key is that we learned an awful lot from this and can now assist our customers even better when dealing with outdoor ATMs.

**** UPDATE ****

September 28, 2017

After many calls between the account manager, Jeremy, and the FBI and ATF, on this situation, we learned that the authorities were able to issue a subpoena at the home of Scott Michael Petri. We are not sure how all this went down but we speculate that the FBI was able to leverage the information obtained in the video of the ATM robbery. According to law enforcement, one of the suspects bragged to a confidential informant about the crime. Upon serving a subpoena at the suspects home, the Law enforcement authorities say they found a drill, a gas cylinder, clothing and other incriminating evidence in his home that matched the items in the surveillance video during the crime.

Court documents allege (and video shows) Petri used a cordless drill to make two holes in the ATM machine’s housing. A second unidentified suspect (now in custody) approached the ATM with an open flame (see video, looks like a cigarette) and lit a fuse.  The suspects drove to the other side of the gas station and the ATM exploded. See the entire ATM robbery (edited for time) in the video above.

Suspect_Searching

The suspect (circled) is searching for the cash box after the ATM robbery explosion

The August robbery was the second time this year an explosive device was used on an ATM in San Diego, according to the FBI.

**** UPDATE ****

October 5, 2017

Scott Michael Petri faces a charge of using an explosive to damage property relating to a robbery at the Chevron Station and Pit Stop Car Wash on Miramar Road just south of the 15 Freeway entrance. The suspect was picked up and booked on October 5th and transferred into Federal custody and is being held in the Federal Prison in Downtown San Diego by the ATF. Bail has been set at $250,000.

ATM_Suspect_Arrested

Public arrest records for Scott Michael Petri. One of the suspects in the ATM robbery.

10 Reasons Cash Still King In an Increasingly Digital World

In an Increasingly Digital World, Cash Still King & Reigns Supreme

Even as the number of digital payment methods available to consumers continues to rise, cash is still king.  Cash remains the number one choice for a large number of transactions. Some people prefer the ease of cash in completing transactions.  Others feel more confident in the security offered by using cash.  A minority of customers aim for perks and discounts by being a cash-oriented shopper.  With that in mind, the use of physical money is likely going to stay in the mainstream for the foreseeable future.

Infographic showing Cash still King

Source: CardTronics Cash Survey – Nov. 2015

A recent study1 indicated that when people are looking to pay someone back for borrowed funds, cash is still king. In fact, it is the payment form de jour 78 percent of the time. That means that, despite the best efforts of various banks and online payment management systems touting the ability to send money to anyone with an email address (you know who you are!), almost four out of five people would rather hand over cash to repay friends and family members over sending funds electronically.

Other areas where cash is king include convenience store purchases and snacks away from home.  Grocery store purchases, small business purchases, and restaurant bills also see cash taking the lead.

Though the number of payment alternatives only rises, general consumer sentiment seems to suggest that using cash for many transactions is going to stay the norm well into the future. Hence, cash is still king and will reign supreme for quite some time.

Tipping in Cash

A cash tip is often logical when the bill will be paid in cash.  However, cash tipping on card-based transactions also occurs frequently. For example, the aforementioned survey showed that 53 percent of restaurant-goers paid in cash.  Even though 48 percent of the customers used credit, cash tipping was common for 78 percent of those surveyed.

While tipping is not restricted to restaurants alone, many consumers choose to pay tips in cash due to a variety of other factors. Some consumers do not care for the idea of mandatory tip sharing, or pooled tips.  They feel that, by paying in cash, there is a higher likelihood their server will keep their fair share.

Even though certain pooling practices are technically illegal, it does not guarantee the activity will not occur.  Similarly, removing a percentage of a waiter’s tips to cover the corresponding exchange fees on card-based transactions is also illegal, but has been seen to occur.

Cash for Budgeting

One reason cash seems to stay a critical part of the financial marketplace is its ability to act as a built-in budgeting mechanism. The envelope system2, a budgeting technique pushed into the limelight by personal finance gurus such as Dave Ramsey, functions by having followers shift to a predominantly cash-based way of living.

Once a person determines how much of the funds available from their paycheck will be allocated to certain expenses, they physically place the corresponding funds in an envelope labeled for that purpose. The method states that, once an envelope is empty, no additional spending is allowed in that category.  Spending can continue once until the envelope funds are replenished with their next salary payment.

Pocket full of Cash Still KingThe survey also supported the fact that Millennials are not as resistant to paying in cash as the rumor mill would have you believe. Not only do many Millennials use cash as a method for staying on budget, they do so more often than those belonging to the Baby Boomer generation at a rate of 40 percent to 30 percent.

Women are more likely to take part in this cash budgeting trick than men, at a rate of 39 percent and 29 percent respectively, though the practice has decent footing across the board.

Confidence in Consumer Banking Institutions

Though budgeting is a significant contributor to the use of cash by Millennials, it is only part of the story.  In 2014, a study was completed between San Diego State University and the University of Georgia3.  The study determined one of the biggest influencers of the use of cash among this youngest working generation is the general distrust of banks and other financial institutions 4.

This distrust is bred from the constant flow of predominately negative information about business practices in the financial industry.   The ability to feel connected with a large digital network of others who feel similarly amplifies this effect. The feeling of connectedness makes younger generations feel more empowered that they can make a difference, as they are more aware of the number of like-minded people.

Recent high-profile data breaches5, such as the Target data breach in reported in 20136, have also increased consumer anxiety around the use of card-based payment methods, such as debit or credit card purchases, leading to an increase in the number of cash sales. Security concerns were most notably expressed by older generations but were also a significant presence across every generation.

Cash Offers Security

When it comes to a secure payment method for closing out a transaction, cash is almost unbeatable.  You do not have to worry about someone gaining access to your bank account when you hand the cashier a $20.  This remains true regardless of what happens to the store’s point-of-sale system on the backend.

Cash has maintained its popularity for smaller retail transactions, generally defined as those below $20.  Transactions under $10 are completed in cash about two-thirds of the time based on a study conducted by the Federal Reserve whose results were published in 2014 7. In contrast, across all transactions, mobile and text-based payment options only accounted for less than 0.005 percent of all payment activities.

Cash and Debit are NOT the Same

wallet with credit cardsThe use of cash should not be confused with the use of debit card.  The electronic component associated with debit cards automatically increases the risk associated with the transaction. Debit cards offer direct access to any cash you have associated with that bank account.  This includes any overdraft protection in place.  However, the nature of how the transaction completes sets it apart.

If an unscrupulous person gains access to your debit card number and your PIN, they essentially gain unfettered access until you or your bank notice something seems amiss. In contrast, if someone steals $50 from you, the thief has access to $50, and that is it. There is no more risk to your funds beyond the amount that was specifically taken.

Additionally, banks that offer consumer deposit accounts are also subject to hacking attempts and malware.  This is demonstrated by the discovery of an international hacking ring in 2015.  The ring was responsible for stealing as much as $1 billion from over 100 banks 8.  This helps cement the fact that even if a debit card is like using cash, it is not as safe as actually having cash-in-hand to pay for items.

The risk is associated with how the funds are stored (digitally in an account versus as paper money in your hand).  It has nothing to do with whether the funds are considered functionally like cash or an extension of credit.

The Disappearance of the Check

While the check hasn’t officially disappeared from the payment option landscape, it has certainly lost a significant amount of ground. In 2014, grocery retailer Whole Foods expanded their no-check policy to include stores in the Southwest region of the United States9.  The continues the trend in place with major retailers, including Gap Inc. stores.  Additionally, many specialty stores, such as Lululemon Athletica, also do not accept checks.

Cash Use Survey

Click to View

In fact, the Federal Reserve estimated a decline of over 50 percent in the number of checks written between the years 2003 and 201310. This decline is partly due to the reduction in checks being accepted at the point of sale.  The rise in popularity of the debit card is also a factor.  However, checks remain common for payments of large-value consumer bills.

Customers who preferred checks as a form of payment generally shifted to either use cash or debit card.

Debit Cards versus Credit Cards

There are instances where credit cards can offer more security than its debit card brethren11.  Credit purchases often come with higher levels of fraud protection. Additional benefits may also be available to credit card users.  This includes institutionally offered cash back or travel rewards.

Some cards include special access based on the card issuer in use.  For example, American Express is often the most famous for this, especially in relation to the infamous “Black Card”12.  Often, these extra offerings cannot fully offset the challenges associated with a compromised card.  Benefits also do not compensate for the costs associated with taking on, and carrying a debt.

Cash Only Small Businesses

Even in today’s digital age, some small businesses choose to run as cash-only businesses or retailers. The most common benefit is avoiding transaction fees associated with credit and debit card purchases.  It can also lead to simpler bookkeeping requirements 13.

Suitcase - cash still kingAdditionally, the likelihood the business will be the subject of various fraudulent transaction attempts is also limited.  Fewer fraudulent transactions may translate into lower prices.

If a consumer is interested in items from a cash only small business, they will have to pay in cash or walk away without making the purchase. Many would consider this risky, as a business may lose customers in the process.  A business can mitigate the risk through installing on-site ATMs.

Small Businesses and On-Site ATMs

For businesses that choose to use a cash only payment model, adding an on-site ATM can be enticing.  A buyer who would otherwise not have the cash on-hand can withdraw the funds to complete the purchase.

Many service oriented businesses lead the way when it comes to on-site ATMs. These ATMs are often designed to have a low surcharge, or be surcharge free.  Most commonly, these ATMs are seen in service-based businesses such as barber shops, hair salons, and nail salons. The practice is also common in small bars as well as casinos.

Adding on-site ATMs shows to be profitable for many small businesses14. This is supported by the fact that many retail transactions are still completed in cash.  An on-site ATM allows customers easy access to their funds without requiring a card as the form of payment at the point of sale.

Additionally, an on-site ATM is often more cost-effective for small businesses.  It provides an alternative to those who would otherwise be unable to support the transaction fees associated with accepting debit or credit cards. It can also help a business to run more efficiently.  There is no need to dedicate the time to verify a customer’s information to assess whether a check or card-based transaction is initiated by an authorized account holder when cash is the payment method.

The cash market continues to show enough strength to keep many of these businesses running.  This suggests we will not see the end of cash in the marketplace any time soon.

Cash Payer Discounts and Card-Based Surcharges

In 2013, updated agreements between credit card giants MasterCard and Visa changed the terms associated with processing card-based transactions.  The processing costs are referred to as interchange fees.

Many retailers passed this increase on to consumers through surcharges.  The surcharge (at times called the innocuous sounding “convenience fee”) is designed to help cover the costs associated with increased interchange fees.

Cash Survey Graph shows Cash Still King

Click to View

This led to some retailers to essentially offer discounts to cash customers. This trend was most noticeable as people drove their cars up to the pump for fuel. While the price difference between cash and card-based payments for gasoline may vary, it is not uncommon to see a difference of about $0.10 per gallon.

The discount to cash payers functions as a reward for not using the other systems.  It also looks to encourage more consumers to see cash as king. This operates, psychologically, in a similar fashion to offering a sale15.  Consumers enjoy feeling as though they have gotten a deal, even if it is as small as 3 or 4 percent.

This is not the case in all states.  Some, including California and New York, have banned the use of credit card surcharges.

References
  1. “Cash Remains a Leading Payment Form,” CardTronics.com, January 14, 2016, accessed August 29, 2016, http://ir.cardtronics.com/releasedetail.cfm?releaseid=950285.
  2. “Dave Ramsey’s Envelope System,” DaveRamsey.com, accessed August 29, 2016, http://www.daveramsey.com/blog/dave-ramseys-envelope-system/.
  3. “Study: Millennials Less Trusting Then Gen x Was,” CBSNews.com, September 4, 2014, accessed August 29, 2016, http://www.cbsnews.com/news/study-millennials-less-trusting-than-gen-x-was/.
  4. “6 Money Myths for Millennials to Stop Believing,” HuffingtonPost.com, last modified May 19, 2015, accessed August 29, 2016, http://www.huffingtonpost.com/learnvest/6-money-myths-that-millen_b_6902078.html.
  5. Paula Rosenblum, “In Wake of Target Data Breach, Cash Becoming King Again,” Forbes.com, March 17, 2014, accessed August 29, 2016, http://www.forbes.com/sites/paularosenblum/2014/03/17/in-wake-of-target-data-breach-cash-becoming-king-again/#5956194242ec
  6. “Target: 40 Million Credit Cards Compromised,” CNN.com, December 19, 2013, accessed August 29, 2016, http://money.cnn.com/2013/12/18/news/companies/target-credit-card/index.html
  7. Barbara Bennett et al., “Cash Continues to Play a Key Role in Consumer Spending,” FRBSF.org, April, 2014, accessed August 29, 2016, http://www.frbsf.org/cash/files/FedNotes_Evidence_from_DCPC.pdf.
  8. “Whole Foods Market Is Latest Retailer to Reject Checks,” DallasNews.com, August 25, 2014, accessed August 29, 2016, http://www.dallasnews.com/business/retail/20140825-whole-foods-market-is-latest-retailer-to-reject-checks.ece.
  9. Mike Snider and Kaja Whitehouse, “Banking Hack Heist Yields up to $1 Billion,” USAToday.com, February 16, 2015, accessed August 29, 2016, http://www.usatoday.com/story/tech/2015/02/15/hackers-steal-billion-in-banking-breach/23464913/.
  10. “The 2013 Federal Reserve Payment System Study,” FRBServices.org, December 19, 2013, accessed August 29, 2016, https://www.frbservices.org/files/communications/pdf/research/2013_payments_study_summary.pdf.
  11. “4 Reasons Credit Cards Are Better Then Cash,” HuffingtonPost.com, last modified November 15, 2014, accessed August 29, 2016, http://www.huffingtonpost.com/simple-thrifty-living/4-reasons-credit-cards-ar_1_b_5824482.html.
  12. Patrick Morris, “American Express Black Card: The Wild Benefits of the Credit Card That Costs $2,500 a Year,” Fool.com, August 24, 2014, accessed August 29, 2016, http://www.fool.com/investing/general/2014/08/24/american-express-black-card-the-wild-benefits-of-t.aspx.
  13. Lou Hirsh, “Importance of Atm Machines in a Small Business,” Chron.com, accessed August 29, 2016, http://smallbusiness.chron.com/importance-atm-machines-small-business-63116.html.
  14. “Accepting Cash Only,” SBA.gov, accessed August 29, 2016, https://www.sba.gov/managing-business/running-business/managing-business-finances-accounting/accepting-cash-only.
  15. Anita Campbell, “Pros and Cons of Offering Discounts for Paying in Cash,” SmalBizTrends.com, July 11, 2013, accessed August 29, 2016, http://smallbiztrends.com/2013/07/pros-cons-discounts-for-paying-in-cash.html.

93% of US ATMs Never Found a Skimming Device

93% of US ATMs Never Found a Skimming Device

The National ATM Council, Inc. (“NAC”), a not-for-profit national ATM trade association representing America’s IAD’s, announced today that the results of its industry-wide U.S. Retail ATM Skimming Survey.

The survey results show ninety-three percent (93%) of the companies operating ATMs at retail locations throughout the U.S. have never experienced a credit card “skimming” incident at their ATMs. Of the ATM operators responding to the survey, over half have been in the ATM business for ten or more years and inspect their ATMs at least once per week. The survey includes a broad representation of the U.S. independent ATM industry – with respondents ranging in size from 1 to over 5,000 ATMs in their operations.

“These skimming device survey results confirm that retail ATMs are secure and the incidence of card data theft is extremely low,” said Bruce Renard, NAC Executive Director. “At the same time, we recognize from prior experiences in other countries that we are likely to see a rise in card fraud and skimming in the near term, with the implementation of EMV in the U.S.”

NAC is continuing its work with the retail ATM sector in helping raise awareness and promoting detection and deterrence of skimming devices among the industry and consumers. These initiatives include our skimming survey, issuance of industry alerts and ongoing development of anti-skimming device guidelines for retailers. The top three countries reporting losses from ATM skimming remain the U.S., Indonesia, and the Philippines according to the European ATM Security Team (EAST) fraud update in the first quarter of 2016.

EAST said ATM skimming devices were reported in 20 countries attending its meeting in February. The data for EAST’s “European Fraud Update for 2016” is primarily from updates by representatives of 19 countries in the Single Euro Payments Area and four countries outside that area.  The use of “throat inlay ATM skimming devices” appears to be on the rise, the group said. Three countries reported ATM skimming attacks employing throat inlay devices, which are placed inside the card reader throat in front of the shutter.

No ATM Skimming devices have ever been found or reported on any ATM deployed by ATMDepot said CEO, Noah Wieder.

ATM Skimming

Man Finds $500 In ATM Machine. What He Did Next Shocked The Bank.

So this guy, Bobby Puryear drives up to his bank’s drive up ATM machine to withdraw money from the ATM, and as he was inserting his ATM card, he noticed someone had left a giant wad of cash where the money is dispensed. What Bobby did next is nothing short of amazing.

Bobby Puryear Finds $500 In ATM

Hopefully many humans wouldn’t think of keeping it, but unfortunately, most might, but we’ll keep faith that humankind hasn’t totally lost the word “kind”.

Yesterday I went to the drive thru atm at my bank as I was putting my card in I noticed where the money comes out of…

Posted by Bobby Puryear on Thursday, November 12, 2015

Story about finding $500 in ATM Money Slot

Bobby actually drove around to the front of the bank, and took the $500 he found in the ATM Machine to the teller and explained what happened. At first, the teller didn’t really know what to do so they got the bank manager involved. At that point, Bobby (who isn’t even a banker) suggested they try to find the person that used the ATM just before Bobby. That shouldn’t be difficult, ATM’s have journals and online reports making it easy to track down who used the ATM and the exact times.

The next day, the bank manager spoke to Bobby and explained they were on a 3-way call and that the manager had found the owner of the $500 to be a 92-year old woman named Edith. She explained that she used the ATM to get her rent money of $480 and offered Bobby a $20 reward. However Bobby came to learn that Edith was on a fixed income and the $20 was really the last of her funds for the month.

Needless to day, Bobby found it hard to believe that Edith wanted to give him the only money she had as a thank you. Obviously, since he returned the money he was not looking for a financial reward but an emotional reward which comes from doing the right thing. Bobby told her he couldn’t accept the $20 and told Edith to have a nice day. But wait.. there’s more…

As anyone can imagine, Bobby continued to think about Edith and the encounter since it was obvious that she struggled to make ends meet month-to-month financially. Bobby, decided to call back the bank manager and asked that he transfer $200 of his own money into Edith’s account (even more good vibes).

I am stunned with the amount of friend request I am getting just from doing what’s right, I must live in a bubble…

Posted by Bobby Puryear on Tuesday, November 17, 2015

That’s when something astonishing happened. When the rest of the bank employees heard that they had such a kind hearted customer, they all chipped in another $300 and deposited $500 into Edith’s account as a Christmas gift.

Would that have happened if it wasn’t the holiday’s? Perhaps, but we can still hope that it wasn’t just the Christmas spirit but that of human”kind”.

That’s the ATM Machine News.

ATM Machine News

The Amazing Money Machine

Amazing Money Machine teaches you how to get that $2.50 fee every time someone uses an ATM?

People Lined up at the Money MachineThe Amazing Money Machine dives deep into a pool of information that will leave you wondering why you didn’t consider this opportunity sooner.

If you’re looking for comprehensive details about making thousands of dollars a month, The Amazing Money Machine will give you all that and more in this simple, readable, and organized manual packed to the brim and overflowing with every step you need to know to start making money today.

With the right knowledge and the proper set of tools, any entrepreneur can start building an ATM business with or without prior experience. Management solutions are helpful in that they can maximize the potential for success, and offer help as well for those who are planning to expand current operations in the hope of gaining higher income.

If you answer yes to any of these questions…

  • Do you work for your money, or does your money work for you?
  • Are you a successful business owner looking for more?
  • Are you you still trading time for money?
  • Are you you looking for an ATM Franchise or some kind of Franchise as a business venture?
  • Are you a retailer, commercial landlord, or in the retail industry and want some easy extra revenue?
  • Are you officially retired, seeking the next opportunity and want fantastic low risk annual returns?
  • Would you enjoy a passive income so you can work less, live more?
  • Are you in a dead end job or career that doesn’t fulfill you and you enjoy counting money?
  • Would you like to help other businesses make more money and earn a passive income at the same time?
  • Are you already living your dream, but wouldn’t mind an extra $1,000 – $5,000 or more per month in passive income?
  • Are you an entrepreneur and have dreams of owning your own business (full or part time)?
  • Are you happy with your current job, but still hunger for something of your own part time?
  • Are you a people person and enjoy talking or networking with store owners?
  • Have you ever invested in stocks, bonds, real estate, or private placement companies?
  • Do you have funds sitting in a savings account, money market account, or Certificates of Deposit (CD) not producing anything that resembles a decent annual return?
  • Would you enjoy quadrupling your Annual Return on Investments?
  • Are you planning for retirement or seeking preservation of capital and a passive income?
  • Have you ever wondered who gets that $2.00 – $3.00 surcharge fee you pay when you use a non-bank ATM and wanted to keep it for yourself?

Then you need to check out “The Amazing Money Machine“!