Bangko Sentral notes rise in ATM fraud

ATM fraud has been on the rise the past few years, the Bangko Sentral ng Pilipinas acknowledged on Friday, but does not consider the problem a serious threat at this point.

 

The number of ATM fraud cases may have increased, but remains low considering the volume of ATM users in the Philippines, said Mel Plabasan, head of the BSP Core Information Technology Specialist Group.

 

Plabasan gave the assurance the banking industry's computer system remains safe from hacking. ATM machines, not computer systems, are the targets of fraud, he added.

 

Cloning of ATM cards is one such scheme. A scheming device is inserted into the card slot to capture personal information. A small camera is also hidden to record the PIN code or personal identification number.

 

Fraudsters then use the cloned cards to make unauthorized withdrawals.

 

Security measures

Plabasan said the BSP has issued regulations on stricter security measures, but the long term solution is the replacement of ATM cards with chip technology.

 

Electronic chips embedded in the cards, instead of magnetic strips, to store a card user's personal information makes cloning almost impossible, Plabasan said.

 

The central bank is giving banks until January 2017 to complete the migration to chip technology.

 

Victims of ATM fraud should immediately inform their respective banks.

 

Lawyer Prudence Kasala, director of Financial Consumer Protection Department emphasized that banks should reimburse their clients for money lost to ATM fraud.

 

Kasala said victims can also ask the Bangko Sentral for help.

 

The central bank's Financial Consumer Protection Department is in the BSP Complex multi-storey building in Manila.

 

The department's email address is consumeraffairs@bsp.gov.ph. Its direct line is 708-7087. – VS, GMA News