The Lebanese Loop

In the world of card fraud, sometimes the simple methods are the most effective. Take the Lebanese Loop for example, all you need is some cassette tape and a bit of guile.



The term derives from regular use of the method amongst Lebanese fraudsters. The insertion of a loop of plastic, metal, or even cassette tape as aforementioned, into the ATM card slot. The customer's card then goes in, the transaction is processed, but the card cannot eject due to a lip on the end of the loop. The customer then leaves the ATM frustrated, and the criminal awaits his moment to collect the card and cash.



When the card isn't ejected by the ATM, the money is not dispensed, thus leaving the lurking fraudster to claim his prize. Of course, there is one thing missing from this plan, the PIN number. The crafty criminal has this sorted however, either by a technique of shoulder surfing (this requires extreme subtlety) or else by approaching the concerned card owner masquerading as a friendly stranger looking to help. By suggesting that they re-enter their PIN number the criminal is given the perfect opportunity to discover the all important 4-digit access code.



Of course, there have been various developments made to the process to improve the efficiency of the scam. In some cases, small cameras will be attached to the ATM to record the person entering their PIN number, thus eradicating any need for suspicious lurking in the background. Alternatively, fake keypads have been fitted to the actual one in order to record the keys entered.



Although the technique is relatively simple in its construction and deployment, the risks involved remain extremely high. Today, with the development of ATM software, many ATMs are fitted with surveillance cameras, making it easy to identify and prosecute the perpetrator. Also, the capacity to steal only one card at a time restricts the beneficial effects of the scam; in order to generate greater ROI, there would have to be a sizeable workforce in operation.



In fact, this is a common occurrence. In Russia, criminal gangs are known to be involved in such fraud methods. The instances of the Lebanese Loop method is also prevalent in countries such as the UK, the USA, Germany and France.