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VICTIMLESS CRIME? THE TRUE IMPACT OF ATM CRIME ON UK COMMUNITIES
THE VALUE OF CASH ON THE UK HIGH STREET

EXECUTIVE SUMMARY: ATM attacks affecting the local community

The rapid increase in attacks on ATMs across the UK is cause for major concern. This report shows that these
attacks are not victimless crimes. In fact, they have a widespread disastrous impact to communities up and down
the country. Over the past four years, the frequency of attacks has risen by an average of 22% each year, with
attacks increasingly moving from urban centres to rural areas. Additionally, financially excluded areas are some of
the worst affected: one in four attacks occur in communities that have only one or no bank branch in their vicinity.

The rise in ATM attacks is even more significant when viewed alongside the fact that ATMs are heavily relied upon
by local communities. Local people including some of our society’s most vulnerable use their local ATM regularly
and the cash dispensed to them makes a significant contribution to takings of local shops and high streets and
keeping the local economy running. It is worth noting that cash machines are responsible for putting £1.6billion
into the cash registers of shops and stores in their immediate surroundings annually.

ATM crime causes significant damage to local communities. One of this report’s key findings is that as much
as £110 million of direct community spend has been put at risk in the last 12 months because of ATM attacks.
Altogether, ATM attacks have cost communities a total of £100 million over the past year. Around 20 million Brits
say they would leave their local community and spend their money elsewhere if their local ATM was not available
anymore, these facts demonstrate that the potential impact to local economies is disastrous and goes way
beyond the immediate damage created by an ATM attack.

This report has been compiled to highlight the current impact of these attacks and demonstrate that unless
policy makers and police forces act now, the future impacts will be even worse. Our forecast shows that, ATM
attacks could have more than triple between 2016 and 2025 unless action is taking to reverse the trend.

This is why we have developed our five-point manifesto to crush cash crime. Our manifesto calls for:

                          1.   Zero tolerance policy of ATM crime.
                          2.   Harsher penalties for ATM criminals.
                          3.   All ATM attacks treated as ‘serious crime’.
                          4.   Mandatory surveillance equipment to evidence cash machine crime.
                          5.   More vigilance in local communities.

Cardtronics will continue to campaign in the coming months to sign up government and civil society groups to
its five-point plan, because an attack on a local ATM is not a victimless crime - it is an attack on the
entire community.

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          VICTIMLESS CRIME? THE TRUE IMPACT OF ATM CRIME ON UK COMMUNITIES
                                      THE VALUE OF CASH ON THE UK HIGH STREET

CONTENTS
Introduction:                                                    page 4

Chapter 1: 		 From niche issue to national problem              page 5

Chapter 2:		 The significance of ATMs for local communities     page 10

Chapter 3:		The impact of ATM attacks on local communities page 14
             in 2017

Chapter 4:		Predicting the damage of ATM attacks to local     page 20
              communities in the coming years

Statement:      Sarah Staff, Head of SaferCash                  page 21

Manifesto:		 A five-point plan to crush ATM crime               page 22

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INTRODUCTION                                              well as the increasingly reckless methods criminals
                                                          are using to target cash machines. The significance
ATMs are an essential part of the UK economy, in          of ATMs for UK citizens is established, highlighting
both city centres and rural communities. Up and           their role in supporting local businesses and the local
down the country, businesses and residents rely on        communities they serve.
cash for everyday purchases, with ATMs underpinning
the health of the local economy.                          With this clear link, the report reveals the financial
                                                          consequences of cash machine crime, quantifying
Worryingly, the number of ATM attacks in the UK is        the damage to businesses targeted by ATM attackers,
rising dramatically, and this is causing significant      as well as the harm they pose to the wider economy.
damage to local communities and the health of the
high street. Attempts to ram raid, dismantle and blow     Based on the current rate of attacks, more local
up cash machines are not only harming the buildings       communities are falling victim to the disruption
in which the ATMs are located and putting shop            that this criminal activity brings. The report also
owners out of action and out of pocket, but these         offers a forecast for the impact this could have in
ATM attacks are also damaging the wider community         coming years if the growth remains unchecked.
and its economy. As such, attacks on cash machines        Our study concludes that ATM crime must be taken
have a serious and detrimental impact on the lives of     more seriously, and suggests a five-point plan to
a large number of ordinary citizens.                      reverse the upward trend in these dangerous and
                                                          damaging offences.
This report outlines the current state of cash machine
attacks in the UK, describing the steep recent rise, as

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                         VICTIMLESS CRIME? THE TRUE IMPACT OF ATM CRIME ON UK COMMUNITIES

  CHAPTER 1: FROM NICHE ISSUE TO NATIONAL PROBLEM

  ATM ATTACKS ARE ON THE RISE
  This study draws its analysis from the most extensive database in the UK on ATM attacks. The source material,
  put together by UK Finance, details on historical attack data provided by ATM providers, which makes it the most
  comprehensive data source available. Our analysis of this data shows that ATM attacks have turned into an ever-
  larger issue over the past years, with a worrying acceleration in the last 36 months. Over the last four years, the
  number of attacks has increased by an average of 22% per year. In the 12 months from 2016 to 2017, this number
  rose to 35% – the fastest growth rate on record. In absolute terms, the 400 attacks in 2014 grew to 722 in 2017.

                                                    Attack numbers
  800

   700

  600

  500

  400

  300

  200

      100

       0
                     2014                          2015                         2016                        2017

  ATM ATTACKS ARE MOVING AWAY FROM THE BIG CITIES,
  WITH RURAL ATTACKS INCREASING BY OVER 60% IN 2017
  When looking at the numbers in more detail, we can see how ATM attacks have become increasingly harmful for
                Proportion
  rural areas. By                  of attacks
                  working with information          in areas
                                            technology            with
                                                          agency CACI  weno
                                                                          havebank      branches
                                                                                 been able to categorise postcodes
  as either urban or rural. An area is counted as urban if the majority of the population falls inside an area with a
30%
  population of 10,000 or more. In 2013, 69% of all ATM attacks were carried out in predominantly urban areas,
  but the the criminal practise has increasingly moved into rural areas. The total number of attacks in rural areas
25%
  increased by 21.5% per year on average, and in 2017, the year with a particularly drastic spike in attacks, the attack
  rate increased by to 61.8%. While 31% of all ATM attacks were carried out in rural areas in 2013, this number has
20%
  risen to 42% in 2018. If this trend continues, half of all ATM attacks will be committed in rural areas by 2020.
  6
   Poorest to be worst hit by a cashless society, warns Which? (October 2018)
   https://www.which.co.uk/news/2018/10/poorest-to-be-worst-hit-by-a-cashless-society-warns-which/
15%Data source in this subsection copyright 2018 CACI Ltd

10%                                                                                                                  PAGE 5
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VICTIMLESS CRIME? THE TRUE IMPACT OF ATM CRIME ON UK COMMUNITIES

                                                Attack numbers
ATM800attacks have a much larger effect on rural areas than on urban districts. Residents in small villages often
rely on only one ATM and local shop for their day-to-day needs. An ATM attack in this environment could deprive
local700
      residents of their only access to cash – which has a particularly severe effect on the viability of the small
businesses in the area. Whilst the effect is similar in urban areas for certain segments of society, many people
are 600
    able to access cash by using a different ATM often within walking distance.

We see a similar picture when looking at ATM attacks in areas with very little access to bank branches.
   500                        1
Latest numbers from the ONS show that 13 million adults live in areas in the UK where at least half of the local
banks and building societies have closed since 2010.
   400

   300
“One in four ATM attacks are carried out in communities
without
 200    a bank branch”
The 100
    number of ATM attacks in areas that have little access to banking facilities has increased. In 2013, 10% of
attacks were carried out in areas without a local branch. In 2018 this ratio has grown to one in four. Over 40% of
attacks0in the first half of 2018 were carried out in areas where there was a maximum of one bank branch open for
customers. This shows 2014how much of a problem2015
                                                  ATM attacks are for both2016                         2017parts of
                                                                            rural and financially-excluded
the UK. ATM attacks are not unique to the UK.

                Proportion of attacks in areas with no bank branches
30%

25%

20%

 15%

 10%

  5%

  0%
                 2013             2014              2015             2016             2017              2018

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                          VICTIMLESS CRIME? THE TRUE IMPACT OF ATM CRIME ON UK COMMUNITIES

     ATM ATTACKS IN EUROPE
%)            UK accounted for 20%
es         of all ATM attacks in Europe.

                  EUROPE (80%)

K                                 UK
%)                              (20%)

     These crimes are carried out across Europe but the UK suffers more than any other country. Data collected
     by EAST, the European Association for Secure Transactions, from 20 European countries, representing 439m
             2
     citizens shows that in 2017 and 2018, 1 in 5 of all ATM attacks in Europe were in
     the UK.

     ATM ATTACK VECTORS
     Criminals are using a range of different methods to break into ATMs to gain access to the cash inside.
     Attackers are using tools such as angle grinders and saws to dismantle cash machines and access banknotes.

     However, some criminals are resorting to more violent
     methods, including ram raids, where a vehicle is driven at
     speed into the ATM. Others are taking much greater risks by
     injecting volatile substances into the ATM and igniting them –
     with the resulting explosion intended to break the ATM apart.

     Explosive attacks using flammable gases and liquids are
     particularly destructive, producing severe damage to stores
     and nearby property, as well as risking lives. The perpetrators
     of these attacks have no way of controlling the scale of the
     explosion. Recent reports from Europe reveal attackers being
                                                              3
     killed in their attempts to blow up machines in this way .
     During a trial at Bristol Crown Court in March 2018, a judge
     ruled that the explosive destruction of a free-standing
     cashpoint in the city could have severely injured passers-by.
                                                                       Photo by kind permission of Staines Fire Station

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VICTIMLESS CRIME? THE TRUE IMPACT OF ATM CRIME ON UK COMMUNITIES

And in Scotland, a thief was left fighting for his life after a failed attempt at blowing up a cash machine
             5
in Clydebank.

Gas explosions and ram-raids are some of the most destructive attacks, leaving behind devastating damage to
the site and the surrounding areas. When analysing the ATM database, we classified ram-raids, gas explosions
and other attempts to remove an ATM with force as dangerous. In 2017, almost half (47%) of all attacks can be
counted as “dangerous”, meaning that criminals were more than happy to cause devastating damage in their
attempt to break into the machine. Markedly, the number of dangerous attacks has grown strongly over
the past four years. While in 2014, there was an estimated 129 ‘dangerous’ attacks, this number almost tripled
to 342 in 2017. In fact, the growth in dangerous attacks is by far outstripping the overall increase in ATM attack
numbers as the graph below illustrates:

     800            Total attacks                                                           50%
                                                                                    723
     700            ‘Dangerous' attacks                                            47%

     600
                                                           535
                                    43%                   43%
     500                             452                                                          Proportion of
              400                                                                           40%
     400
                                                                                                  dangerous
                                                                                                  attacks
                                                                                    342
     300
                                                          228
     200                             195
              129
     100                                                                                    30%
             2014                   2015                  2016                     2017

              32%                    43%

                                                                 More often than not, these attacks are
                    60% of ATM attacks                           unsuccessful; only two out of five (41%) attacks
                                                                 in 2017 resulted in the theft of the ATM’s cash
                    result in no cash                            contents. Whilst it is gratifying to see the success

                    being stolen                                 of ATM security, the ineptitude of the criminal
                                                                 gangs brings significant risk of uncontrolled,
extensive damage, Our industry data shows that in 2018 almost 70% of gas attacks on ATMs took place on petrol
station forecourts – clearly, the causing explosions in this environment are extremely dangerous, bringing the risk
of wider and much more serious consequences.

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                          VICTIMLESS CRIME? THE TRUE IMPACT OF ATM CRIME ON UK COMMUNITIES

                                        POLICE S
                                                T
                                        ATM crime                   ATEMENT
                                                         has a huge
                                       in the confi                     financial im
                                                        dence of th                      pact on bus
                                                                       e people th                       inesses and
                                      public is als                                    a t work in th                      , of course,
                                                        o massively                                     a t in  du
                                      out the hea                       a ffected. ATM                             str y. The genera
                                                       rt of a com                           crime has th                                l
                                     element of                       munity, by                                e potential
                                                      our bankin                     re  m o ving access                       to rip
                                     members o                       g infrastruc                              to this fund
                                                      f that comm                     ture and wit                             amental
                                                                       unity to pay                   h it, th  e ability for
                                    It can leave                                         for items o
                                                     certain me                                        r services in
                                                                     mbers of th                                          cash.
                                                                                     e commun
                                                                                                    ity particula
                                   The recent                                                                         rly vulnerab
                                                    growth in A                                                                       le.
                                   criminality                      TM attacks
                                                   away from                        is  partly due to
                                  robberies. C                     traditional                            a shift in org
                                                    riminal gan                  fo  rm  s of bank o                         anised
                                                                    gs are curre                        r cash-in-tra
                                  committing                                        n  tly far more                       n  sit
                                                    ATM offenc                                         interested
                                                                    es.                                                in
                                 There has b
                                                  een a mass
                                 London tha                       ive reductio
                                                 nks to the h                     n in ATM ga
                                                                  ard work an                      s explosion
                                in the Flyin                                      d  investigativ                  s across
                                                g Squad. W                                           e sk
                               however th                      e  a re still seein                        ills  of officers
                                                e infrastruc                       g ATM rip-o
                                                                tu re a n                           ut offences
                               streets ma                                 d the numb                                 ,
                                               kes it very d                               er of police
                              to operate                       ifficult for A                             on the
                                              within Lond                      TM rip-out
                                                               on. As a co                     offenders
                              this crime is                                   n sequence,
                                                being push                                     m  uch of
                                                                ed out into
                                                                                rural areas
                                                                                               .
                             The full imp
                                              act of ATM
                             There are lo                     crime cann
                                              cal people                      ot be unde
                                                             in isolated                     restimated
                            who are wit                                     c ommunities                     .
                                             hout cash a                                        in the
                            ATM crime                        s a  direct cons                           U K
                                           .                                     equence of

                          DCI Nick B
                                     lackburn
                          Metropoli
                                    tan Police
                                              , Flying Sq
                                                                          uad

1
    https://www.bbc.co.uk/news/uk-england-45641217
2
    The data is collected from the following countries: Austria, Belgium, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Greece,
    Ireland, Italy, Liechtenstein, Luxembourg, Netherlands, Portugal, Romania, Spain, Sweden, Switzerland and the United Kingdom.
3
    https://www.mirror.co.uk/news/world-news/teen-dies-after-blowing-up-13454900
4
    Bristol Post: https://www.bristolpost.co.uk/news/bristol-news/cctv-reveals-moment-atm-raider-1390942;
5
    The Mirror: https://www.mirror.co.uk/news/uk-news/thief-fights-life-aftter-blowing-11843804

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CHAPTER 2: 	THE SIGNIFICANCE OF ATMS FOR
           LOCAL COMMUNITIES

ATMS ARE THE LIFELINE OF LOCAL COMMUNITIES
In order to qualify and quantify the impact that the loss of an ATM has on the general public, we conducted a
consumer survey on the importance of cash machines to local communities. We surveyed 2,027 UK adults in
September 2018 and asked about the way they use their local cash machine, when and how they spend cash in
their communities and how they would change their behaviour if they were to lose their local access to cash.

Cash from local ATMs is crucial
in supporting local economies,
bearing in mind that nearly half                         Brits spend £5.9bn every
of consumers spend money in
their local community at least
                                                         month in their
once per week.                                           local communities

Consequently, access to a steady supply of cash from ATMs supports retailers and SMEs within the vicinity,
ensuring regular footfall and driving customer loyalty. With such a significant amount of local cash staying in the
area, a large amount of intake for small businesses depends on having a local ATM in the vicinity of their shop.

In rural areas, half of
consumers rely on an ATM in
their local community for a
cash withdrawal at least once                             Every month local cash
per week. In the context of
falling ATM numbers owing                                 machines put £1.6bn into
to bank branch closures and
funding cuts, cash machine
                                                          shops and stores in their
crime exacerbates the                                     immediate surroundings.
difficulties faced by local
residents in gaining convenient
access to their money.

NEED-TO-KNOW: local
community spend and
ATM usage
NEED-TO-KNOW: UK

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                    VICTIMLESS CRIME? THE TRUE IMPACT OF ATM CRIME ON UK COMMUNITIES

       Spending Habits
       • 33.6 million Brits spend money in their local community at least once a week
       • 22.7 million Brits use a cash machine in their local community at least once a week
       • Only 7% of consumers say they never use an ATM in their local community
       • On average, consumers take out £19.52 when they use a local ATM
       • Brits spend on average £11.58 per visit in their local communities

ATMS SERVE PEOPLE OF ALL AGES ACROSS THE ENTIRE UK
Cash machines serve all age groups, supplying them with money to spend in their local communities. Almost
half of UK consumers use an ATM in their immediate local community at least once a week, making withdrawing
cash a regular occurrence in their daily lives. Over a third (37%) of consumers spend more than half of the money
withdrawn from ATMs in shops in the vicinity. Our research found that middle-aged and elderly citizens are the
most frequent visitors to shops within their local communities: 77% of 55-65 year-olds and 80% of those aged 66
and over shop locally at least weekly. Accordingly, any disruption to the supply of cash in local communities – as a
result of ATM attacks – has a disproportionate impact on older residents.

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In addition to the elderly population, the digital-savvy “Generation Z” (18-24 year-olds) especially relies on cash
for budgeting purposes. Our findings show that nearly four in ten consumers within this age group use an ATM in
their local community at least once per week.

       NEED-TO-KNOW: ATM and local community spend across the UK
       • 52% of residents in urban areas use ATMs in their local community
       • 43% of residents in rural areas use ATMs in their local community
       • Only 5% of UK residents spend none of the money withdrawn from an ATM in the local community

At the moment, residents in urban areas are more likely to use their ATM at least weekly than in rural areas.
This implies that the closure of bank branches and the reduction of the ATM network is making citizens in
rural areas struggle to find an ATM in their immediate vicinity, with many having to travel into neighbouring
communities to withdraw cash.

According to consumer group Which?, lower-income households are on average more reliant on cash, as they are
less likely to use credit or debit cards for every-day transactions. Which?’s survey suggested that as many as 78%
of consumers among the two lowest household income brackets use cash at least two or three times every week.

  Cash in Wimbledon
  Businesses across the country are feeling the effects of the reduction of the ATM network. A community in
  Wimbledon, an urban area in Greater London, has only got one cash machine left in their neighbourhood.
  Due to this, the owner of an antiques shop recently lost out on a £400 sale, as the potential buyer could not
  access any cash. A resident in the area has taken their story to the national media and argues that the lack
  of access to cash is “embarrassing” for them as a community.

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                         VICTIMLESS CRIME? THE TRUE IMPACT OF ATM CRIME ON UK COMMUNITIES

     Cash in Glastonbury
     In 2016, Glastonbury was set to be left with no banking facilities after the last bank in town left the area.
     Cardtronics stepped in and provided two new free to use ATMs. According to our research up to 12 million
     Brits said they would shop somewhere other than their local high street if they were not able to withdraw
     money. This explains why shop owners were extremely relieved by the installation of the new cash machines.
     Locals were also reassured, saying that cash machines are a vital amenity required in their town.

6
    Poorest to be worst hit by a cashless society, warns Which? (October 2018)
    https://www.which.co.uk/news/2018/10/poorest-to-be-worst-hit-by-a-cashless-society-warns-which/
    Data source in this subsection copyright 2018 CACI Ltd.

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VICTIMLESS CRIME? THE TRUE IMPACT OF ATM CRIME ON UK COMMUNITIES

CHAPTER 3: T
            HE IMPACT OF ATM ATTACKS ON LOCAL
           COMMUNITIES IN 2017

ATM ATTACKS ARE NOT A VICTIMLESS CRIME
The rising number of attacks on cash machines is causing significant damage to local communities across the
UK. Beyond the immediate damage to ATMs and nearby property, loss of access to cash leads to disruption for
consumers and the local businesses they rely on in their everyday lives. ATM attacks put over 13 million cash
withdrawals at risk, with a knock-on effect of 5.6 million shopping trips at risk of disruption every year.

An attack on a cash machine isn’t just an attack on the ATM operator and local shop owner, it costs everyone in the
surrounding area. We have looked at how much money taken out from local ATMs is spent in the immediate area and
applied this to our forecast of how ATM crime is going to increase over the next years. One of the key findings is that
as much as £110 million of direct cash withdrawn from an ATM has been put at risk in the last 12 months.

  The effects of ATM attacks in numbers

  Up to 4.5 months                                                           13,500,000
  For an attacked ATM to be reopened                                        Number of cash withdrawals lost over
                                                                            the last 12 months due to ATM attacks
                                            £110million
                                            Total direct ATM spend at
                                            risk over the last 12 months

  £33,750                                                                   5.6 million
  Average loss to an attacked shop                                          Total number of community shopping
  (repairs, lost revenue, etc.)                                             visits at risk over the last 12 months

THE COSTLY AFTERMATH OF ATM ATTACKS
When criminals attack a cash machine, there are a multitude of costly consequences. First, the ATM operator has
to replace the machine and restock it with cash. Increasing attacks mean costs are increasing for ATM deployers,
who in turn are forced to consider removing ATMs in order to reduce their losses.

Immediate damage to property incurs repair costs for local business owners. Businesses must repair windows,
doors or walls forced open by criminals, as well as any inventory damaged or stolen during the attack. In the case
of ram raids and volatile chemical attacks, this damage can be extensive. Owners are tasked with completing
lengthy insurance claims often resulting in higher premiums later on.

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                    VICTIMLESS CRIME? THE TRUE IMPACT OF ATM CRIME ON UK COMMUNITIES

	Case study
   When a ruthless ATM gas attack was carried out at a Post Office in a small village in South East England,
   the local Post Master and his wife who live in the flat above were left traumatised from the event.
   They described the attack as “like a bomb had been placed underneath them”. Their trauma and fear that
   another attack could occur made them decide that they were not able to live in the same place any longer.
   So, they put their business and their flat, which they had originally acquired as their “retirement plan”, up for sale.
   The increasingly extreme methods being employed by criminals is putting lives at risk, but there is a larger
   hidden cost on citizens’ peace of mind. Local residents and business owners should not be exposed to violent
   crime of this nature.

Using gas to explode an ATM is tantamount to creating a bomb: this is extremely dangerous for people living above
or next to the shop. It can also cause unseen trauma and psychological consequences for nearby residents.

Vehicles involved in ram raids and getaways are usually stolen. This affects local farmers and construction companies,
whose tractors and diggers are frequently taken in order to execute the attack. The same goes for local residents, who
might find that that their stolen high-performance car or pick-up truck has been used as a getaway vehicle.
Cash stolen from ATMs is regularly used to fund other criminal activities, such as drug dealing and illegal firearms
purchases. It is thereby often linked to larger criminal activities, and as such, ATM attacks are both enabled by and
an enabler of other crimes.

 The dangers of ram-raids and ATM
 explosive attacks
 In many cases up and down the country, criminals have caused disastrous damage to their surroundings
 and residents in the area. Sometimes they even endanger their own lives: A criminal who attempted to blow
 up an ATM in Warrington managed to get caught in the explosion and set himself on fire. In another case,
 criminals drove a tractor into the side of an old building in Beaminster, causing the wall to collapse and
 leaving behind a two-storey hole. The resident sleeping in the flat above the store with the ATM miraculously
 escaped uninjured. Nevertheless, her flat remains inaccessible and partially destroyed. The attack also
 meant the nearby A3066 had to be closed and left the community without accessible parking spaces for
 weeks after the event.

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VICTIMLESS CRIME? THE TRUE IMPACT OF ATM CRIME ON UK COMMUNITIES

 ATM crime connected to drug and firearm trade
 A gang of criminals in Yorkshire has recently been jailed for more than 35 years for a number of connected
 crimes. Besides a series of ATM attacks, the gang was also convicted for firearm incidents, drug supply and
 knife crime. Their organised criminal activities were all linked, with some used to fund other endeavours.
 When convicted, £115,000 in cash was recovered, alongside a number of weapons, ammunition and heroin.

When an ATM is attacked, it can take            The effect on rural
up to 4.5 months for it to be replaced.
This is because after the initial attack,      communities, where an ATM
shopkeepers and ATM operators are not
able to simply replace the machine.
                                               attack can rob residents of
They have to make good the site, reassess      their only way to access cash,
the risk and plan for additional security
measures to be put into place.
                                               is devastating.

While shops remain closed, they lose valuable custom, intake falls, and customers are driven elsewhere. In 2017,
a supermarket chain incurred an average cost of £33,750 for each attack that they suffered. In the case of large
supermarket chains that fall victim to attacks up and down the country, ATM attacks can land them with yearly
costs of millions of pounds in repairs, lost stock intake and missing footfall and sales. For smaller independent
stores, the costs associated with ATM crime can be enough to put them out of business or force them to relocate
to new premises, with all the additional costs this incurs.

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                    VICTIMLESS CRIME? THE TRUE IMPACT OF ATM CRIME ON UK COMMUNITIES

   ATM attacks robbing local communities
   of their cash machines
   Residents of Hibaldstow, a village in North Lincolnshire have recently lost their cash machine to an ATM
   attack. Consumers in this area are now struggling without access to cash. Residents have said that
   “attacks like these are becoming too common” and that they are “desperately missing the facility in the
   area”. Instead, locals have to undertake a 9-mile car journey to access the nearest cash machine which is
   in Scunthorpe – a task that severely disrupts the lives of those with young families and the elderly, who
   may find themselves short on time or without their own vehicle. Equally, after criminals ram-raided a
   convenience store in nearby Kirton in Lindsey, residents in the area spoke out saying that it’s “scandalous”
   that their cash machine had been attacked. There are no bank branches accessible in the local area, and
   residents now have to rely on the Post Office for their basic banking services.

The loss of a convenient, local ATM can be disruptive for locals, introducing transport costs for those travelling
away from their local community to access ATMs and shops elsewhere. When a local ATM falls out of use, local
business at large suffers from reduced footfall. Visitors to the local area are equally unable to withdraw cash to
spend within the community.

We asked survey respondents
how their spending habits               Without a local ATM, 20 million
would change if they no longer
had access to their local ATM.          Brits would withdraw cash and do
.
Our  research found those aged
between 25 and 34 years – an
                                        their shopping away from their
economically important group of         home community.
society with significant spending
among retailers – were most
likely to spend less in their
local community.

Without cash, the question of           38% of people would spend less
alternative payment methods
arises. However, would a simple         money locally if they lost access
switch to cards and digital
payments stand as a complete
                                        to their local cash machine.
substitute for cash payments?

                                                                                                          PAGE 17
CARDTRONICS UK WHITEPAPER
VICTIMLESS CRIME? THE TRUE IMPACT OF ATM CRIME ON UK COMMUNITIES

This was particularly true for older people and shows that consumers will continue to rely on cash as an important
part of the payment mix.

Clearly, many consumers choose the
most convenient option when             Only 31% of survey respondents
withdrawing their spending money
and often do their shopping at the
                                        believed cards and digital
same time. In order to do so, when an   payments would ever be able to
ATM is out of actionthey are willing to
take their custom out of the local
                                        fully replace cash
community in favour of another location. This directly affects local businesses, who lose out on customers if an
ATM is temporarily unavailable - and some of those customers never return.

When solely including cash loss, replacing the machine and the damage done to crime sites, the direct impact of
ATM attacks adds up to £46.8 million. While we are unable to measure the police resourcing costs that have to
be made available to fight ATM crime, this number is already a multiple of the amount of cash that criminals have
managed to get away with. Taking into account the potential impact to local economies, we estimate that ATM
attacks have cost the UK over £150 million in the last 12 months.

  Derbyshire ATM blast
  A gas attack on an ATM was carried out in Spondon, Derbyshire leaving the building in pieces. This attack
  meant that local residents had to be evacuated from their flats above the store. One of them described the
  attack as ‘feeling like a bomb had gone off’. The aftermath of the attack has left many locals worried about
  the structural impacts on their homes, with one describing it as an ‘absolute nightmare’. The shop is not set
  to re-open for at least two or three weeks.

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CARDTRONICS UK WHITEPAPER
                 VICTIMLESS CRIME? THE TRUE IMPACT OF ATM CRIME ON UK COMMUNITIES

NEED-TO-KNOW: The consequences of inaccessibility to ATMs
• 42% of customers (equal to 19.9 million Brits) say they would travel to a different community to withdraw
   cash if their local ATM became unavailable - and then spend the money elsewhere.
• 34% of respondents said they would have less control over their spending if they lost access to their
   local ATM.
• Over 65s are the most likely to travel to a different location to use a cash machine and spend the cash
   in that community.

                      POLICE ST
                               ATEMENT
                     “From a po
                                 licing persp
                    sophisticate               ective ATM
                                   d. Offences                    crime is hig
                                                 require a d                      hly organis
                    and the me                                     e                              ed and
                                 thods of att                        g re e of criminal o
                   potential to                a c k from gas e                             p  e ra tional plan
                                  put the pub                         xplosion to                               ning
                                               li c a n                               drag out ha
                   been occas                           d   offenders a                                ve the
                                ions of pre                                 t risk. Natio
                                             mises colla                                   nally, there
                                                              psing and in                                  have
                                                                                jury.
                  “The wider
                               community
                  provide a s                 impact is a
                              ervice to co                     lso signific
                                            m                                  ant in that
                 are out of o                  m  u n it ies. When a                          ATM mach
                              peration fo                                 n attack oc                       ines
                 economica                 r a considera                                c u rs these m
                             lly unviable                       ble period                                 achines
                                           due to atta                         of time. If a
                causes a ri                                  c k, it could b                    se rv ice b ecomes
                            pple effect                                        e removed
                                          to the rest                                          which again
                                                           of the entire
                                                                             community
                Detective                                                                    .”
                           Chief Insp
                                         ector Chri
                                                          s Mossop
                                                                         – NW ROC
                                                                                       U

                                                                                                                       PAGE 19
CARDTRONICS UK WHITEPAPER
VICTIMLESS CRIME? THE TRUE IMPACT OF ATM CRIME ON UK COMMUNITIES

CHAPTER 4: PREDICTING THE DAMAGE OF ATM ATTACKS ON
            LOCAL COMMUNITIES IN THE COMING YEARS

A RISING TREND IN ATM ATTACKS
Criminals have been targeting
cash machines more and              Local ATMs:
more during recent years. Our
forecast, based on the industry     By 2020 ATM attacks will have
database of cash machine                                                     7

attacks, suggests that the          more than doubled
number of ATM attacks will
increase significantly over         By 2025 attacks will have more
                                                              8
the coming years. ATM crime
therefore deserves to be
                                    than tripled
higher on the agenda for policy
makers and police forces.
7
    Compared to 2016
8
    Compared to 2016

The reality could be worse than our forecast suggests, based on the number of attacks carried out in the first half
of 2018, ATM crime this year is on course to surpass our predictions, meaning criminality could well cost local
communities significantly more than this report suggests.

This potential acceleration in ATM crime means more cash machines out of action, more property damage,
further loss of custom and more disruption to local economies. The most dangerous attacks (ram raids and use of
flammable chemicals) do not occur in isolation: more attacks will lead to a greater number of copy-cat crimes and
criminals could be further emboldened to take more extreme risks.

SECURE ATM INITIATIVE
                           ‘Secure ATM‘ powered by Cardtronics is the largest ATM security innovation initiative in
                           the country. ATMs that carry the ‘Secure ATM’ brand are fitted with the latest technology
                           designed to fight ATM crime. The security measures include SmartWater, a spray that
                           marks ATM thieves for up to 5 years following an attack. Note Dyes are also deployed.
                           This technology senses when an ATM is being attacked and stains the cash with an
                           indelible inks which render the notes worthless. Other measures include gas suppression
                           kits, which neutralise attempts to blow up a machine, as well as Artificial Intelligence
                           technology, which can predict an attack before it even happens. The Secure ATM
                           initiative is supported by an expert team of external partners, ranging from local Police
                           forces through to security technology companies and world-leading IT specialists.

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CARDTRONICS UK WHITEPAPER
                         VICTIMLESS CRIME? THE TRUE IMPACT OF ATM CRIME ON UK COMMUNITIES

STATEMENT
Sarah Staff, Head of SaferCash, the BSIA’s Home Office-backed Policing initiative that shares information and
intelligence on physical ATM crime with UK Law Enforcement and cash machine owners, confirmed there has been
a surge in attacks.

“Our members have seen a really high spike in this level of crime and the losses are huge, including the theft, terrible
damage to buildings, loss of revenue for the companies and the impact to local communities. Over the last three
months we have seen a 60% increase of these types of offences.”

ATM theft is not only causing incalculable damage to the economic infrastructure, there is an increasing risk in
harm coming to members of the public, as methods of stealing ATM machines now include the use of heavy plant
equipment to rip out the ATM or gas to blow out the machines. So far this year, 313 attacks have been carried
out using these two types of approaches. The use of such dangerous materials can also have potentially fatal
consequences for anyone thinking of carrying out such a crime: already this year a 19 year old was killed trying to
remove cash from a station in Halle, Germany using a similar method to blow out the machine.

“There is a worrying increase in the use of gas to execute these crimes”, says Sarah: “The greatest fear is that before
long an innocent member of the public will be seriously injured during an attack like this, and as the incident in
Germany clearly spells out these methods are also extremely dangerous to anyone thinking of attempting to steal
money in this way.”

The BSIA, through SaferCash are calling on the judiciary to hand down stiffer, deterrent sentences to put a halt to
these attacks across the board; recently four men were sentenced for a total of more than 30 years after stealing
cash machines from shops across London - clearly demonstrating that prosecution services are determined to pass
down sentences that outline the seriousness of such a crime.

“The length of the sentences received by these criminals reflects the seriousness of their offending and how anyone
carrying out ATM crime will not get off lightly.”

“Although the net is tightening and perpetrators being caught and punished, SaferCash will continue to work closely
with UK Law Enforcement and their partners in trying to prevent and detect these offences right across the UK.”

Sarah Staff, CEO of Safercash November 2018

The BSIA: The British Security Industry Association (BSIA) is the trade association covering all aspects of the professional security industry
in the UK. Its members provide over 70% of UK security products and services and adhere to strict quality standards. For more information
visit the BSIA website www.bsia.co.uk

SaferCash: SaferCash is a security initiative which aims to reduce the number of physical attacks against Cash Valuable in Transit companies,
Financial Institutions and Independent ATM providers, through the effective sharing of intelligence between our industry partners and Police
forces nationwide. SaferCash is a proven partnership approach in tackling physical acquisitive crime between Industry and the Police that is
approved by the National Police Chiefs Council (NPCC) and the Home Office.

                                                                                                                                  PAGE 21
CARDTRONICS UK WHITEPAPER
VICTIMLESS CRIME? THE TRUE IMPACT OF ATM CRIME ON UK COMMUNITIES

A FIVE-POINT PLAN AGAINST ATM ATTACKS
ATM attacks taking place up and down the UK are not victimless crimes. Raids put cash machines out of action,
and the businesses in which they are located are left out of pocket by £33,750 on average. Cash machines pump
over a billion pounds into urban and rural communities – and it is the local community at large that suffers as a
consequence of ATM crime.

ATM attacks have risen over recent years, and are forecast to increase further. This represents a real threat to
local businesses. In order to tackle this epidemic in ATM criminality, we propose the following five-point plan:

1. 	ZERO TOLERANCE POLICY
	We are calling on the government to introduce a “zero tolerance” policy towards prosecutions for attacks on
  ATMs. The courts should show that ATM crime cannot go unpunished, and criminals need to be dissuaded
  from attempting to raid cash machines.

2. HARSHER PENALTIES FOR ATM CRIME
	In order to act as a deterrent, successful prosecutions must lead to substantial jail terms. The legislature
  must use sentencing to send a message to criminals that prosecutions for ATM attacks carry substantially
  heavier penalties than are being handed down today.

3. ALL ATM ATTACKS TREATED AS ‘SERIOUS CRIME’
	Police forces should take into consideration that the proceeds of ATM attacks fund organised crime. As a
  consequence, ATM attacks should be seen as both “serious crime” and a priority for investigation.

4. SURVEILLANCE EQUIPMENT
	Shopkeepers and ATM operators must work together to ensure that appropriate surveillance equipment is
    installed and working in the vicinity of every cash machine.

5. MORE VIGILANCE IN LOCAL COMMUNITIES
	Local authorities, police and community safety schemes must work together to increase vigilance in local
  communities around ATM crime. Local and central government must also ensure local businesses and
  communities are adequately supported and prepared to deal with serious ATM crime.

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                    PO Box 476, Hatfield AL10 1DT
                    t: 01707 632 800 f: 01707 632 801
                    w: cardtronics-uk.com

                                                                        PAGE 23
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