More on the ATM scam

This is the third and final installment, I hope, on the ATM scam which I zealously write about because it is every man’s right to know everything there is to know about it. Most of us are regular ATM users, and in fact quite a few of us do not really bother to check the accuracy of those balances reflected on our ATM receipt.  It’s about time we become more vigilant and check out the figures meticulously. Keep the last ATM receipt in your wallet and compare the last balance with your current transaction before you throw out the previous one, keeping the latest receipt for reference the next time you use your ATM card. And don’t be timid about calling the bank’s attention to any discrepancy you may discover, no matter how inconsequential it is—it is your right, and it is your money.

Last week, I wrote that the affiliate bank, the savings arm actually, of the commercial bank  where my wife keeps an ATM account had not yet reimbursed us for the amount “scammed” from our second ATM account. Well, the bank finally did after a series of follow-ups, and I’m glad they did.  It took them about a month I think while the mother bank took two days to conduct a full investigation and credit back the full amount, including the ATM charges and the service fee for the bouncing check. That’s quick and efficient service which I can’t say for the savings bank. All depositors who have been victimized by such scams have to be relentless in pursuing their rightful claims.

E-mails still pour in from readers eager to share their experiences and their inputs about this ATM scam. One such reader is Mr. Riouel Fabellore who wrote a lengthy one on the issue.  Mr. Fabellore is a planning engineer for Arabtec Construction currently based in Saudi Arabia in the Middle East.

I’m sharing this with my readers verbatim:

“I have read your blog ‘Beware of ATM Scam’, and it was very informative, and yet very alarming for a depositor like me who use ATM most of the time.

I agree with your views in the last paragraph that bank security should be more like the credit card security system.  Here in Saudi Arabia, all transactions made thru ATM will be sent to you via SMS to inform you of your transactions made.  This system should also be used in the Philippine banking system in order for the depositor to be informed about any illegal transaction made against his account. This way, he can inform the bank on its 24/7 security service system to temporarily stop any further transaction. Once alerted via SMS, they can immediately review the CCTV footages to check on the culprit who made transaction around the time when the SMS was sent.  The cost of sending SMS should not be an issue of course and who would shoulder the cost.

CCTV camera units should be mandatory however isolated an ATM is, and there should be a small hidden camera securely placed (secured from dirt that may cover it and secured from observation by criminals) somewhere in the keypad or just directly facing the person making the ATM transaction, so it will never be hard to identify them, unlike those CCTV shots from the top taking only the top of the head as covered by baseball cap.  They could even make a facial recognition system so that on the next ATM he would approach; a proper response could be made.

ATM machines should have additional biometric aside from PIN. However, this would make it impossible for a trustee to make ATM transaction once the depositor is incapacitated. But biometric is more secure than PIN entry. Or perhaps a secondary security card with PIN is also possible for secondary security, or a security code sent via SMS will be used as secondary PIN during transaction, so registering your phone in the bank wouldl be mandatory.  It may be a little time-consuming since there will be – additional procedure or step in making ATM transaction, but what is an additional 30 seconds to one minute in front of the machine if it would secure your hard-earned money.  It is better than waiting for two days for banks to respond or for the investigation result after a complaint is filed.

Since criminals are trying to upgrade their modus operandi every now and then, bank security system should always be 10 steps ahead of them. But the banking system in the Philippines, perhaps, enjoying entertaining complaints rather than avoiding having one.

This is just my personal view that I hope we can inject or suggest to our banking system thru your article.”

Thank you very much Engineer Fabellore for taking out to lengthily write about your suggestions on how to improve our bank security system here in the Philippines.  Obviously, you thought long and hard about your inputs, and sharing your experiences while working in a foreign land is certainly food for thought for our local banking system.  The SMS option is currently used by our local card companies, so it should not be too hard for the banks to adopt it. I don’t know the logistics of this option, given the wider scope of coverage of banks over credit cards, but I agree that it is a very wise option indeed.

As to the CCTV cameras, I believe many if not all of the banks here at home already use the system, but it is also hilarious that the images captured are mostly the top of their heads or the caps they use.  More studies should be used in their placement, or their concealment. It is also so frustrating that many CCTV cameras have very poor resolution which makes it close to impossible to identify the culprits.  We see this happening in several actual footages used by news scoops on television, but can one make out the face distinctly?  Something has to be done about this too.

Mabuhay!!! Be proud to be a Filipino.

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