Criminals blow up ATMs - financial expert reveals the background | As of: April 20, 2023

Criminals blow up ATMs - financial expert reveals the background | As of: April 20, 2023

ATMs are blown up again and again, with criminals making huge profits. According to a report by Tagesschau.de, the average loot from successful crimes is more than 100,000 euros. This poses a challenge for banks, authorities and insurance companies. The perpetrators mainly blow up ATMs in rural areas because there are hardly any people there at night and they can operate undisturbed. The police stations are often far away, making quick escapes possible.

According to the Federal Ministry of the Interior, a third to half of the explosions are successful. Last year, almost 500 cases of ATM explosions were registered. Banks have so far shown little interest in the expensive protection of their ATMs because the damage is insured. However, the insurance premiums depend on the risk. The insurance industry is dissatisfied with the banks' security precautions.

The police are particularly concerned about the dangers posed by the uncontrolled explosions and the risky driving behavior of the perpetrators while on the run. The perpetrators can often escape the police because they come from distant stations and can do little to counter them.

Politicians are now increasing the pressure on banks, authorities and insurance companies to improve security precautions. The Federal Ministry of the Interior has convened a “round table on ATM explosions” to agree on new security facilities. If these measures are not sufficiently implemented, a legal regulation requiring ATM operators will be considered.

Volksbanks and savings banks are particularly affected by the explosions. They still operate many ATMs in the countryside as they are responsible for supplying the population with cash. The rooms where the machines are located could be locked at night to increase security. Better video surveillance and expensive security technology are also being discussed. Glue traps, in which fast-hardening adhesive covers the money, were recently approved by the Bundesbank.

Most of the perpetrators come from the Netherlands and also commit their crimes in Germany. It is believed that they have local contacts who spy on bank branches and escape routes. The organization of the perpetrators in Germany is supported by their quick escapes on foot, during which they cause accidents or are harassed by pursuers.

This issue has a significant impact on the market, consumers and the industry. Banks, insurance companies and authorities have to incur high costs for claims processing and ATM security. The market for security technology and surveillance systems could benefit from the demand. Rural consumers could face problems if local bank branches close their ATMs due to high security costs. Crime rates could also rise as perpetrators seek new ways to obtain cash.

Source: According to a report by www.tagesschau.de