P400 million lost to ATM fraud in Philippines

MANILA – Bank depositors have lost nearly P400 million as a result of 2,872 cases of automated machine teller fraud – mainly card-skimming – from 2012 to 2013, according to Rep. Roman Romulo.

Citing Bangko Sentral ng Pilipinas data, Romulo said that in 2013 alone, some P220 million in deposits were looted on account of the proliferation of illegal personal identification number-capturing devices on ATMs.

He said the amount was P45 million, or 26% higher than the P175 million in deposits ripped off in 2012 due to the covert copying of information from the magnetic strip of an ATM card. “These losses do not include the sum lost by cardholders due to conventional ATM robberies or holdups at gunpoint,” he said.

Romulo has authored House Bill 5036 – the proposed ATM Theft Insurance Act which seeks to require all banks to extend financial protection to their cardholders against losses due to fraud or robbery. “Banks are duty-bound to safeguard customers and their deposits against all forms of attacks at all times,” he said.

Card-skimming refers to the illegal capture of a cardholder’s PIN, mainly via a “skimming plate” sneakily installed by scammers on an ATM. Crooks then create a false or “cloned” card that enables them to withdraw or run up charges to the victim’s account.

Skimming is also a way for identity thieves to steal a cardholder’s personal and account details, thus allowing them to borrow money or take out loans in the victim’s name. (Mindanao Examiner)