7 BDO ATMs compromised in skimming: official

 

Executive says bank has disabled compromised cards

MANILA - An official of BDO Unibank on Wednesday confirmed before a senate inquiry that seven of its automated teller machines were compromised in recent skimming hacks.

"The recent events are connected to three separate fraud events that have recently come to the bank’s attention, and they affected 7 ATMs. The seven ATMs are from three locations," BDO Executive Vice President Edwin Romualdo Reyes told lawmakers in a hearing of the Senate committee on Banks, Financial Institutions and Currencies.

Reyes did not disclose locations of the compromised machines




Reyes said the skimming incident represents only 0.02 percent of its total 3,700 ATMs across the country.

BDO, the country's largest lender, called on depositors last week to report cases of ATM "skimming," just one week after an "internal error" paralyzed electronic services of rival Bank of the Philippine Islands (BPI).


 Reyes said 95 complaints from clients have reached the bank and that BDO has disabled cards which may have been compromised.

Under the skimming scheme, a device is attached to a machine that reads and records details embedded in the magnetic strips at the back of an ATM card during a transaction.

A complementing device, meanwhile, records the user's personal identification number (PIN). The details then are combined to create fake cards that may be used to withdraw or purchase items.

Reyes described the magnetic strip as "a 50-year old technology," and that "attempts to defraud it are as old." He said new technology has made these illegal devices cheap and easy to produce and obtain.

Apart from this, he said, a new skimming scheme was also on the rise.

Called "deep insert skimming," the method would be "undetected and will not be visible in conventional anti-skimming protection" systems, he said.

To remedy this, the executive said BDO was upgrading its ATMs.

The bank, he added, will "reimburse all clients affected by unauthorized withdrawals... subject to existing investigation and reimbursement processes."

Reyes said affected customers should file their complaints through proper bank channels, adding that "social media posts and activities will not be actionable from the bank's side without a formal filing."

Affected customers, he added, may have their cards replaced for free.

source: news.abs-cbn.com

BDO asks depositors to report alleged ATM fraud

MANILA - BDO Unibank, the country's largest lender, said Friday it received reports of alleged ATM fraud and urged depositors who think they were affected to have their cases investigated by the bank.

Social media posts circulated this week purportedly showed how some depositors lost money due to "skimming" or copying of account details through hijacked ATM machines.

"BDO has obtained reports of potentially compromised ATM following reported losses from cardholders," the bank said in a statement.

"Customers with unauthorized transactions may reach out to the bank via formal channels so that their cases may be properly investigated and, where confirmed as impacted, may be reimbursed," it said.

The bank owned by the country's richest man, Henry Sy, said "all efforts" were being made to keep accounts safe.

The ATM fraud reports came a week after Bank of the Philippine Islands' electronic services were paralyzed for 2 days due to what it said was an "internal" glitch.

source: news.abs-cbn.com

SM Investments' Jan-Sept revenues reach P206-B

MANILA - SM Investments Corp. (SMIC) posted consolidated revenues of P206.2 billion for the first nine months of the year, up 7 percent from the year-ago figures.

SMIC said its consolidated net income from January to September 2015 also grew by 7 percent to P19.4 billion.

“Our strong results year-to-date reflect our ongoing focus on delivering footprint expansion across the country and on driving cost competitiveness in all our core businesses," SM president Harley Sy said in a statement on Wednesday.

The biggest contributor to SM's consolidated earnings for the first nine months is the banking unit, accounting for 40 percent.

BDO Unibank Inc. recorded net interest income growth of 12 percent to P41.8 billion in the first nine months, with net income up 5 percent to P17.6 billion.

SM's property unit, SM Prime, accounted for 39 percent of total earnings and reported income growth of 70 percent to P22.9 billion from January to September.

By the end of the year, SM Prime will have a total of 55 malls in the Philippines and six malls in China.

source: www.abs-cbnnews.com

Japan's Nomura to invest in BDO unit

MANILA - Japanese brokerage firm Nomura Holdings Inc. will be investing in a unit of BDO Unibank Inc. through a joint venture with the Sy-led bank.

In a disclosure to the stock exchange, BDO said it has signed a definitive agreement with Nomura for a joint investment in PCIB Securities Inc., a BDO-owned securities dealer and broker.

"The primary objective of the joint venture is to leverage on the strength of both companies to contribute to the growth of the Philippine capital markets and establish a strong platform to serve a fast growing market," BDO said in a statement.

Under the terms of the agreement, BDO will hold a 51 percent stake while Nomura will own the remaining 49 percent.

"The joint venture will initially provide online trading services for local stocks to individual investors. It will eventually expand its services to include cross-border investment opportunities to a broader range of investors," BDO added.

The transaction is still subject to regulatory approvals.

BDO has one of the country's largest distribution networks, with more than 880 operating branches and over 2,600 ATMs nationwide.

Nomura, on the other hand, is the parent company of Nomura Securities, one of Japan's leading investment bank and brokerage firms.

source: www.abs-cbnnews.com

BDO to undergo system upgrade on November 9

MANILA, Philippines - BDO Unibank Inc. said it will undertake scheduled system upgrade from 12:20 a.m. to 9 a.m. on November 9, 2014 (Sunday).

During the activity, the following services will not be available:
Automated Teller Machines (ATMs)
Personal and Corporate Online Banking, Mobile Banking, and Phone Banking
ATM Debit Card and Cash Card Usage.

BDO said clients should perform their banking transactions before the scheduled maintenance to avoid inconvenience.

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