Banks are on full alert in an all-out effort to guard against ATM fraud.
A Consumer Council survey, conducted last month on 19 banks, has revealed an arsenal of security measures which the banking industry initiated in preventing ATM fraud.
These initiatives, if implemented in concert, will enhance effectively the security features of ATMs, on the one hand, and afford greater protection to cardholders, on the other. The survey showed that:
- 82 per cent of the banks have installed or are in the process of installing closed-circuit television to continuously monitor ATMs.
- A further 18 per cent have installed or will introduce anti-spy-camera devices on ATMs.
- Equally significant, 57 per cent of the banks have undertaken to implement a mechanism that records relevant information on ATM cards or credit cards so that banks can determine whether an unauthorised ATM transaction is carried out through a counterfeit card.
- An overwhelming 88 per cent have strengthened and increased the frequency of patrolling ATMs during and after office hours.
- Other precautionary measures which the majority of banks have adopted include: encouraging customers to report any suspicious devices detected on ATMs (88%) and providing them with the relevant telephone number to do so at the ATMs (81%).
- Banks (75%) will also act swiftly to alert customers if any unusual transaction patterns are noted.
In preventing ATM fraud, both banks and customers have a role to play. Cardholders using ATM should always take all sensible precautions suggested by the Hong Kong Monetary Authority (HKMA) and the Consumer Council in this February issue of CHOICE.
According to HKMA, the total number of suspected ATM fraud cases reported is 50 between 11 October 2002 and 19 November 2003. The number of cases settled is 49 with 1 case still under the investigation of the Police and the bank concerned.
The total amount of money reimbursed to account holders by the banks concerned is around $2.1 million, with the highest and lowest values involved in the reimbursements at $377,000 and $1,900 respectively.
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