Reactions to the ATM scam

Last week’s column was devoted to the growing ATM scam that has hit not only our country but others as well.  The internet reports that it is also widespread in the United States, but the difference is, the public is repeatedly warned about it and the banking sector is likewise on top of the situation.

If you missed last week’s piece, I mentioned that, as per the banks’ investigation, certain ATM machines have been compromised, as a result of which the thieves were able to hack several ATM accounts and cleaned them out in a matter of days.  Say, if you have about a hundred thousand in your ATM account and your daily maximum withdrawable amount is the minimum which is P20,000/day, your account can easily be cleaned out in five days. And the scary thing about it is you may be completely unaware of what is happening to your ATM account because your card is safely tucked in your wallet. For “Preferred Bankers” who carry a gold card from their banks, this minimum is usually raised to P50,000 or more per withdrawal per day. In this case, for instance, they could clean out P50,000 before midnight, and after midnight which is technically the following day, they can withdraw another P50,0000 .  You could lose P100,000  in your ATM account all in a span of a few hours. This is one instance when a gold card is less desired.

Last week’s column elicited quite a few reactions from my regular readers. Many of them were aghast that this has become widespread and they have not heard from their bank, or even their circle of friends, about it. K. Cinco of Antipolo City wrote: “My husband and I are both retirees and we really watch our budget keenly. We regularly deposit a specific amount in our ATM for our regular cash purchases because we feel that this is a better way to control our expenses than using a credit card. However, your column last Saturday made us rethink our carefully planned life. Maybe it’s better to use a credit card after all. Thanks.”

Although my column was not at all intended to discourage the use of ATM accounts, I must agree that credit cards are indeed a valuable ally for most of us.  This industry, however, has not been immune to the very perils of cyber criminals and in the not too distant past, millions of dollars have been lost to these hackers.  In the Philippines, some have been victimized as well, specifically those who use their credit cards abroad.  The international syndicates have been busy in Bangkok and other Asian countries.  I should know because in one travel to this Asian capital, I clearly remember that I used my credit card only in one high-end store for just a few purchases while on a very short visit. Imagine my surprise when I received my next billing which reflected outrageous amounts spent for charges like long-distance hauling, huge gasoline expenses, etc. These charges were incurred in several countries in a span of about a week.  Lucky for me that when the credit card company conducted an investigation, they found that my card was used extensively in other Asian countries while I was already back in Manila, and I never went to those other countries too.

In the end, the credit card company credited back those questionable charges.  Traumatized, I personally requested that my credit card be blocked temporarily, afraid that I may be victimized again. After that incident, however, I have not encountered any such incident in all my subsequent travels. 

Perhaps because of such cases, the credit card industry has braced itself for the challenges of these international syndicates and has come up with measures to protect their lucrative industry. More security measures have been installed into their system and the staff is more alert, more vigilant in monitoring for unusual activities in any single account. If you, for instance, fail to report that you are going to travel and you will inevitably use your card abroad, you will be surprised that it has been blocked after one or two purchases. Or if you sign for an extraordinary purchase like a big LED TV, a credit card company will call to verify your purchase. That is what I call vigilance and staying on top of the situation.

A.Moreno of Batangas City wrote: “Thank you Ray for that informative piece on the ATM scam. It’s my first time to hear about it and it scares me to think that while my card is secure in my back pocket, someone else is withdrawing from it. I think it is the duty of any bank to warn their depositors that any ATM machine can be tampered with, as in your wife’s case. I hope too that other victims will be rightfully reimbursed by the bank. More power.”

As I mentioned last week, the bank in question fully reimbursed us within two days as promised, after completing a quit claim form and submitting the notarized form to the bank. That is record time indeed, and we appreciate the bank’s speedy investigation and resolution of the complaint. However, a sister bank, their savings arm affiliate, has not yet reimbursed us for the “scammed” amount which is much, much smaller “because they are still conducting an investigation”. My staff has repeatedly followed up on this but after almost three weeks, we have not heard from them. If the parent company has conducted and finished its investigation in two days’ time, what is taking them so long? We’re talking of one and the same ATM machine that was used.

I’ll keep you posted on this.

Mabuhay!!! Be proud to be a Filipino.

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