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Tighter security after mass ATM skimming in Indonesia JAKARTA - Banks in Indonesia are taking immediate steps to prevent the theft of their clients' money through their automatic teller machines (ATMs) after four banks reported theft of more than Rp5 billion (400.000 euro) in this way since Jan 16.

Bank Indonesia, the country's central bank, said the four national banks had lost Rp5 billion but one of the banks, Bank Central Asia (BCA), had stated its losses alone amounted to Rp5 billion, involving 200 clients.

Some of the clients had received reimbursements of the money after they were able to prove that they had fallen prey to ATM skimming. In a move to prevent ATM skimming, BCA had reportedly enhanced its ATM security system. "We installed anti-skimming gadgets at all BCA ATMs," said BCA vice president director Jahja Setiaatmadja.

Jahja advised the bank's clients to change their PIN (personal identification number) to enhance the ATM card security. Bank Indonesia suggested that the banks replace their magnetic strip debit cards with chip-based cards.

Zul Irfan, vice president of Electronic Channel Department, which offers the ATM network transaction service, estimated that the national banking system required up to Rp2 trillion (150 million euro) to replace all ATMs with chip technology.

Indonesian CID chief Commissioner General Ito Sumardi reportedly said the police would meet with executives of the affected banks to discuss their ATM security system. Ito could not say how many people had lodged reports on the ATM thefts. Police in Bali, where most of the thefts had reportedly occurred, had arrested a suspect involved in such thefts.


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Related blog entries (category 'Crime') Tags: card, bank, skimming, ATM, fraud


Posted in Crime @ 23 January 2010 13:00 CET by Jeroen · 'Blog' RSS feed · permalink






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