DBS hit by $400,000 ATM scam
Unauthorised transactions at ATMs in Malaysia cause panic among customers. January 12, 2012 | Lalitha SivanesanSingapore’s DBS Group has been hit by unauthorised withdrawal of funds via automated teller machines (ATMs) in Malaysia between January 4th and 5th 2012. At least 400 DBS and POSB customers were affected, with about $400,000 stolen. Lim Sim Seng, DBS country manager for Singapore, revealed that “while investigations are still underway, increasing evidence points to the unauthorised withdrawals as being part of a card skimming operation." The operation apparently took place over a three-day period in late November while most of the illegal transactions were conducted in January. Early investigations revealed that two DBS ATMs at Bugis Street in Singapore were compromised. According to the bank, an analysis of the report filed by victims showed that a large percentage of unauthorised withdrawals were conducted at these ATMs. DBS has also identified locations in Malaysia where the withdrawals were made, and would share the information with the police. The bank has responded by contacting all the 2,726 customers who used the two ATMs over a three-day period in November to inform them of the incident. It is also deactivating their current cards, issuing replacement cards and fully compensating affected customers. DBS will also begin implementing new security measures including SMS alerts to customers for withdrawals from customer bank accounts above a certain threshold. The skimming operation took place despite all DBS ATMs being fitted with anti-skimming devices which are regularly upgraded. The bank’s ATMs are also regularly checked by security staff when money is replenished in the machines. Piyush Gupta, CEO of DBS Group, has apologised to customers for the inconvenience, commenting that "The world of hackers and crooks out there is getting smarter everyday," and acknowledging that it is the bank’s responsibility to find ways to increase security to prevent further incidents. This scam is reportedly the biggest... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: ATMs & Kiosks, Operational Risk & Security, Retail Banking, Technology & OperationsATMsKiosks,OperationalRiskSecurity,retail,technology, ATMs & Kiosks,Operational Risk & Security,Retail Banking,Technology & Operations, Keywords:DBS Bank, Piyush Gupta, Unauthorised Withdrawals, Fraud, Card Skimming DBS Bank, Piyush Gupta, Unauthorised Withdrawals, Fraud, Card Skimming
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