Malaysia: ATM card clones put banks at risk

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APR 9, 2000 Abdullah: ATM card clones put banks at risk

KUALA LUMPUR -- Banks have been ordered to prevent the recurrence of thefts using cloned automated-teller-machine (ATM) cards, as it could start a run on Malaysian banks, a report said yesterday.

Home Minister Abdullah Ahmad Badawi was quoted by the New Straits Times as saying that banks have to investigate and prevent unauthorised withdrawals as the country's banking system was at stake.

Unless something is done to check the problem, the public will lose confidence in the institution and start a run on the country's banks, he warned.

Mr Abdullah, who is also the deputy prime minister said that if that happened, it would be disastrous. "Do not dismiss cases of unauthorised ATM withdrawals as customers' negligence but get to the bottom of the matter," he said.

Since April 1, the police have received more than 250 such reports with losses amounting to RM500,000 (S$226,000).

Newspapers and the Bernama news agency said on Thursday that the most affected branches were those of the Ban Hin Lee Bank Bhd (BHL Bank) but other banks had also been hit.

A BHL Bank official was quoted as saying that 40 cloned cards had been handed over to police after its ATM machines were programmed to "swallow" cards used to make unusually large withdrawals.

In December last year, a 55-year-old pensioner lost his life savings of RM23,000, which had been withdrawn illegally from his Bumiputra-Commerce account. The money was later replaced by the bank.

According to The Sun, a 29-year-old bank teller, who was reported missing from work, was caught when he tried to rob one of the bank's customers at its Old Klang Road branch on Friday.

The customer, a 41-year-old woman, was on her way to deposit RM26,000 when she was cornered by two men at the back of the bank.

Both men, who were believed to be unarmed, demanded that the woman hand over her handbag, containing the cash and, when she refused, a struggle ensued.

Staff from the bank and nearby offices, on their way to lunch, were alerted by the victim's cries for help and rushed to the scene.

The teller's colleague and an off-duty policeman apprehended the teller, while others recovered the handbag containing the cash.

The teller's accomplice, in his 20s, managed to escape during the commotion.

-- Martin Thompson (mthom1927@aol.com), April 09, 2000

Answers

URL for above:

http://straitstimes.asia1.com/asia/mal1_0409.html

-- Martin Thompson (mthom1927@aol.com), April 09, 2000.


Malaysia Worldwide Thursday, April 13, 2000 Bank: ATMs in working order By Catherine Chong PENANG: An inspection by BHL Bank showed that its automated teller machines (ATMs) were not tampered with, said its banking and financial services division assistant general manager Khoo Khay Seang.

He said their ATM engineers recently carried out inspections on "suspect" machines and found everything to be in order.

"We have also taken additional security measures where it is now mandatory for affected customers to change to a new ATM card at no charge," he said in a statement yesterday.

The link with MEPS has been temporarily disconnected and BHL Bank ATM cardholders can only make transactions at the bank.

Customers are allowed to carry out a maximum of 10 transactions, compared with 30 previously, before they have to update their passbooks, he said.

Khoo said the daily maximum withdrawal has been reduced from RM3,000 to RM1,000 and operating hours at selected ATMs have also been reduced.

"BHL is planning to make it compulsory for all active ATM cardholders to change their Personal Identification Number (PIN) before a certain date," he said.

He reminded cardholders who have yet to change their PIN number to do so and not to reveal their new numbers and card details to anyone.

BHL Bank, he said, had received 139 claims amounting to RM147,000 from victims of unauthorised ATM withdrawals and had approved 52 claims totalling RM104,000 as at April 11.

"Affected cardholders can file a claim by submitting the police report along with a completed ATM notification and a claim form to BHL Bank Help Centre, located at Menara BHL Bank in Jalan Sultan Ahmad Shah or at any of the branches," he added.

http://thestar.com.my/online/newsreport.asp? file=/2000/4/13/nation/1303cchi.asp&newspage=nation

-- Martin Thompson (mthom1927@aol.com), April 12, 2000.


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