BSP bolsters drive against ATM fraud

CEBU, Philippines - The Bangko Sentral ng Pilipinas is intensifying its consumer protection program due to the increasing cases of automated teller machines fraud.

Johny Noe Ravalo, BSP assistant governor for the Financial Supervision Research and Consumer Protection subsector, said there are currently 1,718 fraud cases recorded with an equivalent loss of  P205 million.

BSP recorded at least 1,272 fraud cases in 2013 or an estimated loss of  P220 million, a significant increase from the P175- million in 2012.

“We are moving further to this consumer protection not just as a reaction or remedial management code but try to inculcate the culture that the interest of financial consumer must take precedence over the interest of the market in terms of profitability,” Ravalo said in a public hearing at the Cebu City Council.

The various modes of ATM fraud include putting a skimming plate on top of the keypads to copy the personal identification numbers of a depositor and illegally withdraw money from bank accounts; placing a card reader with a memory chip, which copies data from the ATM card; and installing camera to acquire the cardholder’s PIN code.

Measures on curbing this illegal activity was presented earlier at the City Council, such as creation of fraud inter-network; adopt aggressive security posture; and massive overhauling of network.

Ravalo advised also the public not to have a PIN that is 1234 or based on birthday, anniversary, address, and the like to protect the ATM card against fraudsters and skimmers.

“We are encouraging victims to file complaints before BSP for appropriate action,” Ravalo said.

Victims are advised to directly report any fraud incidents to the bank where he/she made a transaction, said Gino Gonzales, incoming president of Cebu Bankers Club.

Police Chief  Inspector Romeo Santander, head of the Cebu City Police Intelligence Branch, said they are closely coordinating with the Cebu Bankers Club to strengthen security measures particularly installation of close-circuit television camera.

This is in compliance with the Republic Act 8484 otherwise known as Access Devices Regulation Act of 1998.

“There will be a regular conduct of mobile and beat patrols within the vicinity of the bank, strengthen police awareness through information drive, and hunt ATM syndicate groups,” Santander told the council.

With its aim to combat card cloning or skimming, the BSP has earlier issued Circular No. 808 requiring all banks to issue EMV (a chip-based technology developed by Europay, MasterCard and Visa) capable cards starting January 2017 instead of a magnetic stripe technology  also known as “magstripe” which is made up of tiny iron-based magnetic particles in a plastic-like film.

EMV refers to payment chip cards that contain an embedded microprocessor that provides strong security features and other capabilities not possible with traditional magnetic strip cards.

Councilor Alvin Dizon said it is about time to address such illegal act saying “efforts to address these ATM frauds should be intensified since this is of serious public concern and depositors and their hard-earned money should be protected.” —/JMD (FREEMAN)