How to protect yourself vs ATM fraud

MANILA, Philippines - Fraudsters victimize thousands of people every year. Here in the Philippines, you may have seen the news of ATM fraud that recently hogged the headlines.

Authorities acknowledge that each year, millions of pesos are lost in cases of bank fraud, underscoring the fact that despite taking precautions, we can still fall prey to the tricks of scammers.

The most common fraud cases involve credit cards and ATM cards.

In the case of credit card scams, thieves try to get hold of the card physically or electronically, then use the card to purchase various items, often using the whole credit limit. Electronic information is stolen through websites or phishing attacks, while actual card theft is done through various tactics, including intercepting delivery of the card. In the case of ATM fraud, scammers are able to acquire your card information and PIN number to withdraw whatever amount is in your account.

If you’re lucky, you would be able to detect fraud early on. Some credit card companies call to verify purchases you have made, while others send you an SMS to inform you that your card has just been used. These are very good alerts when your card information falls into the wrong hands and should spur you into action.

Here are some steps you can take if you suspect you’ve fallen victim to fraudsters.

· Report the case to the bank or credit card firm. Call your bank immediately to alert them to the possible fraud. Most financial institutions have 24-hour hotlines that you can call from wherever you are around the world. Give all the information you have at hand. This would initiate the process of getting the financial institution involved to protect your account.

· Change your passwords and PIN codes. If you have noticed mysterious withdrawals in your bank account, immediately change your PIN codes. ATM hackers usually know your PIN code and changing it would stop them from further emptying your account.

· Close your account. If you misplace your ATM card or credit card, it may be a good idea to close your account and open a new one altogether. This way, would-be thieves would be unable to access your money or your credit line.

· Contact utility and credit card companies that have the fraudulent account in your name. There is a possibility that the thieves would use your identity or personal information to transact in your behalf. Take precaution by informing other card companies and utilities that they may transact with using your information.

· Alert the police. You may want to file a police report if you believe you have been victimized by bank thieves.

Here are some precautionary steps you can take to protect yourself from fraudsters:

· Consider getting credit card insurance. Although this is seen by most as another expense, it is a small amount that can protect you from major liabilities in the future caused by bank hackers and scammers who are ready to exploit every weakness they detect in the banking or retail systems.

· Regularly check your transaction history. Go through your bank statements and credit card statements to check for transactions that you didn’t make. Purchases made online or transactions made in distant countries would show up in these statements, alerting you to unauthorized use of your card or personal information.

· Set limits for your cards. You can ask your bank to establish a daily withdrawal limit for your ATM card to keep your losses to a minimum should your ATM card fall in the wrong hands. Similarly, you can ask your credit card issuer to lower your credit card limit. These will help limit your exposure should you be victimized by hackers.

· Don’t keep large sums of money in one account. Limit the amount of money you have in your bank account or put these in separate accounts. Instead of leaving most of your money lying around in deposit or checking accounts, you may wish to putting some in other deposit or investment instruments.

· Always guard your personal information. Do not be careless about your personal information. Don’t give this out to just about anybody who calls you on the phone, claiming to offer a new card or loan. Keep private your complete name, birthdate, and account numbers, among others.

source: www.abs-cbnnews.com

How BDO is combating debit card fraud

MANILA, Philippines – BDO Unibank Inc. has tapped a new software solution to detect, prevent and significantly reduce fraud on debit cards.

The bank said it will use FICO's Falcon Fraud Manager, one of the world's leading analytics and decision management software firms, to analyze cardholder account transactions against fraud profiles on a real-time basis.

BDO senior vice president and head for transaction banking Emmanuel Narciso said the new software will boost not only security of clients who use debit cards for purchase and payment transactions but also the use of online payments.

"We're aiming for significantly increased purchase usage among our debit cardholders. Our success will depend largely on our ability to assure customers that they can use their cards, both online and in stores, to make purchases in an easy, safe, and secure manner," he said.

FICO's studies showed that there is a growing number of payment card fraud over the last two years in the Philippines, coinciding with the rapid growth of card adoption and usage.

Banks are therefore more cautious about growing card portfolios too quickly without effective fraud controls in place.

In 2013, banks lost as much as P220 million to ATM fraud.

"By building its debit card program upon the industry's most advanced fraud detection solution, BDO is backing its commitment to protect its customers so they can fully enjoy the convenience of their debit cards, just as they do their credit cards," said FICO president for Asia Pacific Dan McConaghy.

BDO ATM debit cards allow clients to withdraw cash through BDO, Expressnet, MegaLink and BancNet ATMs nationwide and through MasterCard/Cirrus and Visa/Plus ATMs worldwide (for MasterCard and VISA ATM Debit Card, and pay without cash for purchases, goods and services at major establishments nationwide and abroad (for MasterCard and VISA ATM Debit Card).

Clients can also view balance information, transfer money, pay bills and buy prepaid mobile reloads anytime, anywhere using BDO's electronic channels.

 source: www.abs-cbnnews.com

Victim loses P131,000 to ATM fraud

MANILA, Philippines -- Jordinette Pacia was surprised by a call from her bank informing her of suspicious withdrawals from her account amounting to more than P131,000.

"P131,000 [ang] nailabas in one day at sa ibang bansa," Pacia told ANC, adding she was in shock after finding out her savings account only had P18,000 left after the "suspicious" withdrawals.

Bank records showed to Pacia stated there were 50 withdrawals all done on March 11 and in Bulgaria.

The Bangko Sentral ng Pilipinas said Pacia may have been a victim of ATM skimming or cloning.

"[Pwedeng] may mga skimming device na nailagay dun sa machine, then pag pasok niya nung card, nakopya yung information, naclone na yung card," Teresita Lisama, head of financial consumer affairs at BSP, told ANC.

But Lisama stressed Pacia's money should be returned if it is proven that she knew nothing about the transactions.

Sought for comment, Pacia's bank, BDO Unibank Inc., said it is already conducting an investigation into the incident. BDO added such has been a common problem for all banks and it is currently strengthening its system to avoid more incidents of ATM fraud.

"This is an industry-wide problem affecting all the banks and is not limited to BDO and its systems. We have already taken steps to secure our ATMS from such fraud attempts," BDO said.

source: abs-cbnnews.com