Thai Banks to Protect ATMs from Scammers Ripping-Off Your Accounts

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The following appears in THE NATION:

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Banks to Protect ATMs Against Skimming Scams

 

A special device to prevent the theft of information embedded in ATM cards is being installed in more than 30,000 ATM machines nationwide, Phol Thanachote, chairman of the Automated Teller Machines' businesses community, said Tuesday.

 

The community is also considering installing devices that jam wireless signals in areas near ATM machines, to prevent stolen information from being relayed wirelessly, he said. Stickers will help ATM users determine which machine has been protected.

 

Skimming techniques have been in use for the past few years, though it has become more difficult to come up with protective measures due to fast developing technology. However, he said, educated users should be able to protect themselves because they know about the tricks being used by scammers.

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Here are some more details, from THE NATION:

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Protecting ATMs against Skimmers

 

By The Nation

Published on March 11, 2009

 

A special device to prevent the theft of information embedded in ATM cards is being installed in more than 30,000 ATM machines nationwide, Phol Thanachote, chairman of the Automated Teller Machines' businesses community, said yesterday.

 

The community is also considering installing devices that jam wireless signals in areas near ATM machines, to prevent stolen information from being relayed wirelessly, he said.

 

Stickers will help ATM users determine which machine has been protected.

 

Skimming techniques have been in use for the past few years, though it has become more difficult to come up with protective measures due to fast-developing technology.

 

However, he said, educated users should be able to protect themselves because they know about the tricks being used by scammers.

 

On Monday, the Thai Bankers' Association issued a statement saying that they would consider compensating victims on a case-by-case basis, but would be completely responsible if victims can prove that they were not at fault.

 

In Chumphon, three commercial banks yesterday agreed in principle to pay money to victims who have lost money through skimming after an investigation proved that their cash had been stolen, not lost through carelessness.

 

The Bangkok Bank branch said its decision would soon make a final decision and make payments from March 23 onwards.

 

Kasikorn Thai and Thai Military Banks have not coordindated with the provincial authority's taskforce in Chumphon about the conditions and the date of payments, senior provincial official Suthin Phayak said. "We expect that they have contacted their victims and made personal agreements."

 

Police in Chumphon's Lang Suan district said they were going after four more suspects, all part of a Malaysian ring led by a man called Teo Puex Heng.

 

So far, 15 victims have registered with Lang Suan police, who police say have made agreements with the three commercial banks. In Chumphon, around Bt3 million has been stolen so far.

 

Police had earlier said the racketeers had stolen around Bt50 million from victims in Surat Thani, Phetchaburi, Trang, Krabi, and Songkhla over the past five months.

[Bob]

This trip, I've come across some ATM issues for the first time. I used the SCB atm right across the street from the Duangtawan Hotel several times at the end of January and early February. Upon returning for another withdrawal, I noticed some small added device where you insert your card. It looked as if the device was part of the machine but, since it definitely was different than I had seen before, I walked down to Changklan and used the atm in front of the SCB branch bank. That new "device" was not in any of the other SCB atm machines.

 

Since arriving in Hua Hin, I've occasionally used one or two SCB machines, including the one right in front of the SCB bank on Petch Kasem (the main drag). That machine was down for a couple of days last week and the manager was standing by the machine saying not to use it as there was a "problem." I looked more carefully at the machine and it had the same added device at the card slot as the one in Chiangmai. It was gone the next day, everything looked normal, and use of the machine was back to normal.

 

The "device" I've seen and wondered about is rather small, looks quite official, and essentially is a protrusion around the card slot that sticks out no more than three-quarters of an inch. It's black or dark, the same general color of the card slot, but what makes it look different to me at first is that the device somewhat interupts the normal green light/color you see at the card slot. Most people wouldn't even notice anything different.

 

Probably wise to actually take a look a more careful look at the atm machine you normally use - and then simply don't use any machine that doesn't look completely normal especially around the card slot.

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simply don't use any machine that doesn't look completely normal especially around the card slot.

I would also contact both the bank and the police to report it.

 

THE NATION now has a graphic display that shows how it's done and what the scamming devices look like. See: http://nationmultimedia.com/admin/specials...d/file/How2.pdf

[Guest lvdkeyes]

I would also contact both the bank and the police to report it.

I would notify the bank and let them notify the police. I think the less contact with the police the better off you are.

[Gaybutton]

The following appears in THE NATION:

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ATMs to Get Security Boost

 

Published on March 16, 2009

 

Banks Act as Fraudsters Shake Confidence; Bt100m Stolen

 

Is it really safe to use an automated teller machine? Probably not.

 

According to police data, ATM fraud has caused an estimated Bt100 million in damage so far, with the latest case earlier this month seeing multiple victims in Chumphon losing Bt3 million.

 

To stem the rash of thefts, banks are quickly spending on reinforcing ATM security to restore customer confidence.

 

But cardholders also have the responsibility to protect their own accounts.

 

Imagine this: As you withdraw cash from a rigged ATM, an electronic data-skimming device already inserted inside the card slot by thieves steals personal information from your card.

 

Simultaneously, a tiny spy camera hidden somewhere inside the ATM booth watches as you punch in your personal identification number (PIN) on the keypad.

 

Then, the fraudsters only need to produce a counterfeit ATM card and drain your account with your own PIN.

 

Experts say the older models - still making up about 20 per cent of the nationwide ATM base - are more vulnerable to data skimming than the new types.

 

Of the 30,000 ATMs deployed countrywide, 60-70 per cent already have anti-skimming devices installed costing Bt4,000-Bt7,000 each.

 

The remaining unsafe units will soon be similarly equipped.

 

According to the Thai Bankers' Association, all member banks should complete ATM security measures by June, while old ATMs, which do not support anti-skimming devices, must be replaced or fully upgraded.

 

Member banks failing to comply with the deadline will have to take responsibility for any financial losses caused by skimming.

 

Phole Dhanashoti, presi-dent of the ATM Services Business Club, said yesterday every bank should be able to meet the deadline as it takes only two to three months to finish fitting devices.

 

Yongyuth Pisiviloth, senior vice president of Siam City Bank (SCIB), a member of the ATM club, said his bank had completed anti-skimming equipment installation for 70-80 per cent of its 1,600 ATMs.

 

Besides the anti-skimming devices, banks also need to install closed-circuit televisions (CCTV) at every ATM to act as a deterrent by capturing images of fraud perpetrators.

 

It still remains undecided if banks operating ATMs will have to shoulder the financial responsibility for data skimming at their units as issuing banks are currently liable for customer compensation.

 

Prasarn Trairatvorakul, president of Kasikornbank, admitted that his bank had to reimburse customers even though the crime was committed at another bank's ATM.

 

"We need to install anti-skimming equipment at every ATM to be effective," Prasarn said.

 

Soon, banks will have to upgrade their magnetic-stripe ATM cards into chip-embedded versions to make data stealing harder, to stay one step ahead of the criminals.

 

Monitoring abnormal transactions is another method to deal with the conmen, said Luecha Sukrasebya, executive vice president of TMB Bank.

 

But the best way is probably to increase customer awareness of the danger, with emphasis on cardholders keeping their PINs a secret.

 

A Bank of Thailand source said one of the safety guidelines is to install surveillance cameras at all ATMs, particularly those located in risky areas.

 

[Bob]

The key, at least to me, is to be sure of what the normal slot looks like that swallows your card (i.e., next time you use one, take a little longer look at it). And, if you ever see a slot that looks the slightest bit out of normal, don't use it.

 

The slot device shown in the newspaper article is rather large compared to the one I saw on the two SCB atm machines. But somebody made it the right color to match the dark color (either a dark purple or black) of the SCB machines.