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BY GLENDA SOLOGASTOA
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Wednesday, March 29, 2017
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ILOILO City – Banks in this city are being urged to do more to prevent automated teller machine (ATM) skimming.
One suggestion from Councilor R Leonie Gerochi is for banks to use fingerprint sensor technology in ATM withdrawals.
ATM skimming involves the use of contraptions that steal personal identification numbers (PINs) and other data. These are then used to withdrew money from the bank accounts of unsuspecting ATM card holders.
Another suggestion from Gerochi is for banks to use the short messaging system. Every time a withdrawal is made thru ATM, the owner of the bank account must receive a text message about the transaction without an hour.
These suggestions were contained in a proposed ordinance Gerochi introduced during yesterday’s regular session of the Sangguniang Panlungsod. It wanted banks to double their antifraud ATM security measures.
“There is a need to pass a legislation to tilt the balance in favor of the public demanding more security for their money. Banks must be required to invest in additional measures that safeguard the funds of their small depositors,” Gerochi stressed.
The deputy director of Bangko Sentral ng Pilipinas (BSP) Iloilo branch, Joanne Marie G. Castelo, welcomed Gerochi’s proposal.
On the part of the BSP, she said, they have already talked to the Bankers Association of the Philippines (BAP) for better ATM security measures.
Castelo also said that as early as 2013, BSP issued Circular 808 ordering its supervised banks to migrate from the magnetic strip security feature of ATMs to the better EMV chip card technology.
EMV is a global standard for credit and debit payment cards based on chip card technology, taking its name from the card schemes Europay, MasterCard and Visa – the original card schemes that developed it. The standard covers the processing of credit and debit card payments using a card that contains a microprocessor chip.
According to Castelo, the EMV chip card technology is difficult to hack due to the complex processing involved.
In the Philippines, around 90 percent of point of sale terminals is already using the technology, and a little less than 50 percent for banks, she revealed.
Every chip card transaction contains dozens of pieces of information to be exchanged between the card, the terminal and the acquiring bank or processors host. This requires the terminal to perform many stages of complex processing, including cryptographic authentication, to successfully complete a transaction.
Castelo said other security measures banks could institute are the provision of closed circuit television cameras or posting of more security guards in ATM terminal, and even online enrollment for bank transactions.
Gerchi’s proposed ordinance was referred to the city council’s committee on trade, commerce and industry.
BSP-Iloilo recently received three complaints from depositors regarding unauthorized withdrawals from their bank accounts.
One complainant lost P50,000 in an unauthorized withdrawal and believed his ATM card may have been compromised. (With a report from the Philippine Information Agency/PN)
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