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Thousands of ATM cards cancelled; new security measures now in force
View(s):Private and state banks have been forced to cancel thousands of ATM cards and issue fresh chip-based after revelations that a group of foreigners used devices to skim data from the cards at some teller machines and use them fraudulently, bank officials said.
At least three foreigners — two Chinese and a Romanian — have been taken into custody as the Criminal Investigation Department took over the probe.
A senior CID official said banks had been also cautioned that another foreign team was operating, reportedly in the outstations and using hi-tech skimming devices to obtain data from ATM cards.
An estimated Rs 4 million had been withdrawn illegally from various banks by Friday and the figure could be higher, the official said. One of the bank branches affected was in Mirissa in the south — showing how far and wide the racketeers had spread out.
The detective said investigations had revealed that the skimming device had been installed into the slot where the ATM card was inserted. In earlier cases, the devices had been fitted externally.
He said that, as a result, banks had been forced to issue new cards.
“Customers and bank security officials should be alert, especially when they see people wearing helmets and caps at ATMs, the officer said.
Meanwhile, a Payment Card Industry Association spokesman said that the fraudsters had managed to affix skimming devices to certain ATMs and were able to get the data embedded on the magnetic stripe of the cards.
A tiny camera had been used to get the PIN.
“There have been concerns raised by people on the safety of the system. As most banks have adopted EMV Chip technology, customers have been reassured that the systems are safe for transaction,” he said.
The spokesman said that as most banks and financial institutions had adopted EMV Chip technology, quickly converting the entire card base to EMV Chip cards and upgrading all ATM devices to process transactions based on the Chip of the card would help eliminate any threats.
“Cards without EMV chips are vulnerable. Banks are replacing such cards with EMV Chip cards,” he added.
He said it was the responsibility of the card issuing bank to pay the defrauded amounts to the affected customers.