Singapore’s biggest bank suffers from another spate of unauthorized withdrawals
Third DBS ATM compromised, withdrawals allegedly linked to earlier skimming activities. March 08, 2012 | Lalitha SivanesanDBS has suffered another episode of unauthorized ATM withdrawals on February 19th 2012, with the bank receiving calls from customers who received SMS alerts informing them of the illegal withdrawals. Apparently 17 customers were affected in this case, another result of the previous skimming attack, resulting in a loss of about $18,000. The previous incident led to the loss of $800,000 via unauthorized ATM withdrawals inMalaysia, affecting 700 DBS and POSB customers. DBS has explained that the most recent unauthorized withdrawals did not arise from new skimming activities but was instead as result of the earlier card-skimming incident. The two men who were earlier arrested earlier in connection with the incidents on charges of possessing skimming equipment to manufacture false ATM cards, have been slapped with further charges. With regards to the second skimming incident, the bank has fully compensated all affected customers within 24 hours and has been cooperating with the police in the course of their investigations. Additionally, it has also identified a group of customers that are at risk of such skimming incidences, and have deactivated and replaced their bank cards. Even so, the skimming incidents will definitely bring up issues of trust for the bank’s customers, and result in decreased confidence. DBS may also have to be prepared for an onslaught of customers jumping to rival banks, whom may not have been directly inconvenienced by the incidents, but may have been put off by the bank’s actions in the resolution of the issue. The bank’s effectiveness or lack thereof in trying to solve underlying problems may also play an important part in bank conversions due to lack of confidence. DBS is in the midst of inserting EMV chips into all ATM cards, as Singaporean banks comply with a directive to move to EMV chip technology by 2014, a move that will hopefully help reduce fraud. Existing security measures on DBS ATMs i... 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, Unauthorised Withdrawals, Fraud, Card Skimming DBS Bank, Unauthorised Withdrawals, Fraud, Card Skimming
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