FBI warns of ATM jackpotting attacks draining cash

You swipe your card and enter your PIN. You take your money and walk out the door. It feels routine and safe. Most of us don’t give it a second thought. But some ATMs are quietly being converted into cash machines for criminals.

The Federal Bureau of Investigation recently issued a cybersecurity alert regarding an increase in malware attacks targeting ATMs. These events are called jackpot attacks. In simple terms, hackers force machines to dispense money on command.

The numbers are increasing. Nearly 1,900 attacks have been reported since 2020. More than a third occurred in the last year. In 2025 alone, losses have already exceeded $20 million. So what’s really going on inside these machines and why is the threat accelerating now?

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How do ATM jackpot hacks work?

This is not a Hollywood hack scene. In most cases, attackers use public keys to open the ATM’s maintenance cabinet. Once inside, they remove the storage drive. They then install malware on it or replace it with compromised software.

After rebooting the machine, the malware takes control. One of the most commonly used tools is a type of malware called Ploutus. It targets the software known as XFS, which ATMs use to communicate with bank networks and authorize transactions.

Instead of asking the bank for permission, the malware overrides this process. It sends its own commands to the machine. Conclusion? The ATM dispenses cash without a card, without an account, and without a legitimate transaction. This is the big jackpot.

Why are so many ATMs vulnerable?

Here’s the disturbing truth. Many ATMs work on older versions of Windows. Some machines even displayed Windows 7 login screens. This operating system was released in 2009 and was officially discontinued years ago.

Outdated software creates opportunity. If attackers find a vulnerability in the Windows operating system, they can exploit it across different ATM brands and financial networks. The FBI says these attacks are not tied to a specific bank or ATM manufacturer. Instead, they target common weaknesses shared across systems.

This makes the problem much bigger. Considering that hundreds of thousands of ATMs are deployed across the United States, it will take time to upgrade and secure each machine.

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Nearly 1,900 ATM jackpot attacks have been reported since 2020, with losses exceeding $20 million in 2025 alone. (Robert Alexander/Getty Images)

What are banks being told to do?

The FBI outlined several defensive steps for financial institutions:

• Monitor ATMs for unauthorized files and suspicious executables
• Disable USB ports to prevent installation of malware
• Replace public locks with keypad systems
• Add secondary alarms and enhanced physical security

These are practical fixes. However, rolling them out across the country is a slow process. Meanwhile, attackers continue to search for weak targets.

Why is this still important to you?

You may be thinking that this seems like a bank problem and not a personal problem. Technically, consumers are not the direct victims of these cases. Different Bitcoin ATM scams Jackpot attacks are hitting financial institutions, costing individuals hundreds of millions. But there is a ripple effect.

When banks lose money, insurance companies pay the damages. Eventually these costs show up somewhere. Higher wages. Increased service fees. Stricter policies Ultimately, ordinary customers absorb the impact. Cybercrime rarely stays under control.

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Cybercriminals are leveraging outdated ATM software to bypass bank checks and trigger unauthorized cash withdrawals. (Justin Sullivan/Getty Images)

How do you protect yourself when using ATMs?

Although ATM jackpot attacks primarily target banks, you can still take smart steps to protect yourself when using ATMs.

1) Use ATMs in well-lit, safe locations

Choose machines inside bank branches or in areas with high pedestrian traffic. These locations are more likely to be monitored and maintained.

2) Avoid late night or isolated ATMs

Criminals need physical access to tamper with machines. Areas with heavy traffic during normal business hours reduce this risk.

3) Watch out for unusual ATM behavior

If a machine suddenly restarts, freezes, or acts strangely, stop immediately. Do not insert your card. Report the problem to the bank immediately.

4) Look for signs of tampering

Check for loose panels, exposed cables, or unusual attachments near the card slot or keypad. If there is a problem, use a different machine.

5) Close the keypad cover while entering your PIN

Protect your PIN with your hand while typing. This protects you from hidden cameras and shoulder surfers who might try to get your code.

6) Set real-time transaction alerts

Enable text or app notifications for withdrawals and account activity. Instant alerts help you take action quickly when you encounter an unexpected situation.

7) Check your bank statements regularly

Even as the jackpot bypasses customer accounts, fraud tactics thrive. Review your transactions frequently to catch unauthorized charges early.

8) Consider monitoring for identity theft

Identity theft protection services can provide alerts about unusual financial activity across your accounts. Think of this as an additional layer of awareness rather than a fix for ATM malware. See my tips and top picks for Best Identity Theft Protection at: cyberguy.com.

9) Use contactless or in-app ATM withdrawals

Many banks offer cardless access through secure mobile applications. This reduces exposure to scanning devices and physical tampering.

10) Keep your banking app updated

Install updates now to ensure you have the latest security patches and protections.

Staying vigilant reduces your risk and reinforces good habits, even when attackers target financial institutions rather than individual customers.

Kurt’s important takeaways

ATM jackpot attacks reveal something important. Even familiar machines can hide modern vulnerabilities. Most of us rarely think about the software running inside an ATM. However, these systems are based on the same operating principles as home and office computers. Criminals notice when they are behind on updates. The FBI alert is no reason to panic. We would like to remind you that digital security touches almost every aspect of daily life, even the simple cash withdrawal process.

How much trust do you have in the technology you use every day without seeing how it works? Let us know by writing to us. cyberguy.com.

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