P220M lost to ATM fraud in 2013

Posted at 02/26/2014 9:03 PM | Updated as of 02/27/2014 1:38 PM

MANILA - Incidents of ATM theft rose last year, with banks losing as much as P220 million, authorities said.

Some thieves use gadgets such as a skimming plate, which looks like an ordinary keypad.

When it is placed on top of an ATM's original keypad, it can duplicate an ATM card's codes, which criminals can use in future transactions.

There are ways to detect a skimming plate on an ATM.

The key pad would be slightly elevated and would move a bit when pressed.

"Ito na ho ang common modus operandi ngayon," said BPI vice-president Miguel Bernabe during a Senate hearing Wednesday.

There are also skimming device cameras that could be hidden on an ATM.

Bank officials said it's possible that even machines inside malls have already been installed with skimming devices.

As a counter-measure, banks are now slowly changing ATM cards.

From the magnetic strip, they will instead use EMV chip cards.

"May algorithm na kasi yung ganitong card. Everytime you put in your card may different computations na siya before you can open," said Rene Natividad, BancNet vice-president for operations.

BancNet also told Senator Grace Poe during the public hearing that banks are now studying the option of limiting further the withdrawals on ATMs.

It was also recommended that banks should have security guards outside its perimeter even when they are closed to protect both machines and customers. - report from Ron Gagalac, ABS-CBN News; ANC