Card-skimming remains a major concern for local banks - despite efforts to improve security at ATMs.
Nedbank recently announced it will roll-out a card security device at its ATMs, in an effort to reduce the risks of fraud.
The bank says increased access to its ATMs countrywide - as a result of the installation of more machines - resulted in higher risks for fraudulent activity by criminals.
This led to a significant increase in the number of card-skimming cases reported, says George Chirwa, GM of ATM banking services at Nedbank.
While Standard Bank, First National Bank (FNB) and Absa have already implemented “jitter” capabilities at several ATMs countrywide, they note that skimming is still a major security concern.
In March 2008, Absa announced the implementation of anti-card-skimming or “jitter” technology on its ATMs. The jitter device causes a vibration to the ATM card reader, which sends a disrupted signal to any illegal skimming device.
Chirwa says the device is a protruding illuminated hardware, which is installed in the ATM and causes the card to “jitter” after insertion. The bank states the device will make it difficult for criminals to attach foreign devices on or around the card reader.
With card-skimming, sophisticated handheld card-readers, skimming devices or devices that are placed over ATM card slots are used, and hi-tech thieves can quickly capture data encoded on the card's magnetic strip. The information collected can then be copied onto the magnetic strip of a blank card, or sold to large producers of counterfeit cards. The fraudster can then either go on an immediate spending spree or withdraw money from the account with the cloned card.
Chip security
All four banks say not all their ATMs have jitter technology and that they plan to increase the roll-out as skimming cases increase. Standard Bank says it is looking at more effective security measures.
“Standard Bank will roll-out other measures, which outweigh the benefits of this device. The new EMV cards have a set of security features, which are very capable of dealing with any security concerns,” explains Ross Linstrom, media relations manager at Standard Bank.
EMV is a global standard for credit and debit payment cards, based on chip card technology. The payment cards, also known as smart cards, contain an embedded microprocessor, which has the information needed to use the card for payment and is protected by various security features. Linstrom notes this is a more secure alternative to traditional magnetic strip payment cards.
PIN safety
Chirwa says Nedbank is also continually keeping abreast with technological developments and tries to proactively develop programs to improve fraud prevention and provide secure products for clients.
Steve Higgins, head of corporate communications at FNB, says customers need to take extra care. Despite the advanced technology available to criminals, Higgins says protecting the PIN is the most effective deterrent of skimming attacks. Without the PIN, the card information is useless, he says.
He adds that FNB will also roll-out new technology later on in the year, in an effort to improve customer security.
Share
