CBC warns public anew against ATM fraud

CEBU, Philippines —  The Cebu Bankers Club has warned the banking public anew to be vigilant against automated teller machine (ATM) fraud with the upcoming Christmas season when bank withdrawals normally surge due to holiday-related spending.

"With matters pertaining to ATM fraud, ATM cardholders should make sure that their ATM cards now are converted to EMV (Europay MasterCard Visa) type of card to prevent ATM skimming," said CBC President Mario Fritz Palileo when asked how the public can prevent from being victimized by ATM fraud.

The banking industry is shifting into the EMV technology, which is designed to give tighter security and prevent ATM card fraud incidents.

The Bangko Sentral ng Pilipinas had directed banks to fully comply with the migration by June 30, 2018.

BSP has pushed the banking industry towards full adoption of EMV technology at a much faster pace.

He said banks are encouraging their ATM cardholders to have their cards changed into EMV-enabled.

"For other fraud methods like 'Phishing', it is best to keep ATM cards in the client's possession all the time and do not allow other people use their ATM cards," the bank executive advised the public.

Phishing is a fraudulent practice of sending emails purporting to be from reputable companies in order to induce individuals to reveal personal information such as passwords and credit card numbers.

Moreover, Palileo also advised bank clients to avoid answering emails that require them to divulge their personal data and passwords for bank transactions.

"Do not entertain telephone calls also that will ask for your card details and PIN or passwords," the CBC official said.

Palileo also cautioned the public that when making a withdrawal through an ATM machine, "be mindful of the vicinity for suspicious people and avoid going into ATM locations that will make you walk in dark areas or areas that are convenient for robbers to make you their victim."

Meanwhile, BSP's mandate to adopt the EMV technology is aimed at strengthening the country's electronic payments system and protect consumers from ATM theft.

EMV is a global standard for chip-based credit and debit transactions and is deemed more secured than the magnetic stripe technology which is currently used in most bank-issued cards in the country.

The chip-enabled cards also carry additional security layers and can carry a bigger amount of data than the magnetic strip.

The chip technology is protected by various security measures unlike magnetic stripe whose data can be copied through inserting a device into the ATM.

Furthermore, CBC's Palileo also said the public should likewise be vigilant against fake bills this holiday season although he cited that counterfeit notes are usually rampant during election periods.

"To protect the public on counterfeit notes, they should examine each note that they receive from any person and determine the authenticity of the note," he said.

"When in doubt, always seek an opinion from someone who has knowledge of counterfeit money or by comparing the note with a genuine one," the banker further advised. (FREEMAN)