‘They’re getting better every day’: New ‘jackpotting’ scam has drained over $236,000 from Texas ATMs — and hackers have ties to Russia. Here’s who foots the loss and how to avoid ATM fraud

How ATM jackpotting works

Jackpotting is a type of ATM fraud in which criminals manipulate machines to dispense cash without affecting any bank accounts. Unlike traditional theft, which typically involves physical break-ins or stolen cards, this method combines physical access with remote hacking — often coordinated from overseas.

Collins, who's been working the case for months, told KPRC 2, “Someone has taken a lot of time to learn how to compromise and overtake these systems from a long way away.”

Authorities say the suspects include several Ukrainian nationals and non-U.S. citizens from Russia. The group allegedly hit 70 ATMs in cities across Texas, including Houston, Dallas, Austin and San Antonio. Surveillance footage obtained by KPRC 2 shows individuals at the machines appearing deeply focused on their phones — likely part of the method used to carry out the withdrawals.

Investigators believe the operation is led by a “big boss” based in Russia. According to Collins, the process starts with a simple ATM receipt. The scammers either pull one from a trash can or print a balance slip, then snap a photo and send it to an accomplice abroad who launches the hack remotely.

That signal allows them to override the ATM’s functions, making the machine think a routine transaction was canceled, even though cash is already being dispensed.

“They just keep doing it over and over until it can’t spit money out no more,” Collins said.

Seven people have been charged so far, reported KPRC 2. Two were arrested in Harris County, two are in custody in Miami, one was picked up in Las Vegas and extradited and two remain wanted.

The suspected U.S. coordinator, Vitalii Moravel — an alleged Ukrainian war refugee on a humanitarian visa — is also facing related charges in Georgia and Florida.

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How to avoid falling victim to ATM fraud

While ATM owners — often small businesses — are the direct victims of jackpotting, consumers should still be cautious when using ATMs. Other types of ATM fraud, such as skimming and card cloning, are more likely to affect individual bank accounts.

Here are a few tips for avoiding ATM fraud.

• Stick to secure ATMs. Use machines located in well-lit, high-traffic areas, preferably inside bank branches or trusted businesses.
• Inspect ATMs for skimmers before you use them. Look for loose or bulky attachments on the card reader or keypad. Wiggle the card slot (it should feel secure). If anything looks off, walk away.
• Never withdraw money in response to an unexpected call, text or email. No legitimate bank or law enforcement agency will ever ask you to do this.
• Use your bank’s mobile app to set up withdrawal or transaction alerts. These can notify you immediately if your card is used and can help you spot unauthorized activity faster.
• Consider using contactless payment options, like Apple Pay or Google Pay. This can reduce your exposure to compromised machines and prevent skimmers from stealing your data.

Fortunately, the jackpotting scheme allegedly doesn't affect your personal account if it's used to facillitate a scammer's withdrawal, but it acts as a good reminder to try and prevent other fraudulent activity that can.