Keeping ATM and credit cards safe

We’ve all heard the story: How ATM card holders find their accounts cleaned out through a bank notice or in their next transaction, when all this time the card has remained tucked in their purse.  Or how several withdrawals have been recorded as ATM transactions, none of them by the cardholders themselves.

Such is the extent of ATM card scams and banking fraud that the Bangko Sentral ng Pilipinas (BSP) recently issued a directive enjoining all parties issuing ATM and credit cards to follow the Europay MasterCard Visa (EMV) standard by Jan. 1, 2017.

This security standard will mean a network-wide upgrade of ATMs, POS terminals, switches, credit cards, and ATM/Debit  cards.

As part of this upgrade, new ATM and credit cards will be issued to cardholders who will find that, in addition to the magnetic stripe at the back, their new card will now have an EMV Chip embedded in it.    The EMV chip is the primary means of verifying the cardholder’s identity and has multiple levels of security compared to the single level given by the current magnetic stripe.

In combination with the cardholder’s Personal Identification Number (PIN) and cryptographic algorithms, the EMV Chip provides secure authentication of the card and cardholder at the ATM and POS terminal.

So what makes the magnetic stripe ATM card vulnerable to fraud?

1. The magnetic stripe card has limited storage capacity for data. It can contain only your Primary Account Number.

2. Data can easily be destroyed by strong magnetic fields. For example, an ATM card placed beside a strong magnet will lose the information stored within. Thus, if your card is stolen, your PIN may be replaced with a new one.

3. Data inside cards using only the magnetic stripe as protection can be copied. Thieves who have their own card readers simply attach these to the ATM. Once you use your card, the false card reader will read the data on your card and can then replicate your ATM card, giving thieves open access to your money.

Saftey tips

Since most banks are still working to be EMV-compliant by January next year, here are some tips on how you can protect your magnetic stripe cards and keep your accounts safe:

1. Keep your PIN secret and known only to you. Make sure they are not significant dates in your life that can easily be guessed at by thieves who get access to your personal information.

2. Cover your hand when you enter your PIN.

3. Keep your ATM cards in a place you deem to be secure.

4. When going to an ATM terminal, do a pat-down of the card reader. Is it loose? Does it look different from the last time you used it? If you suspect something fishy with it, call the security guard or bank personnel inside. If it’s too early in the day and the establishment is still closed, go to the next ATM terminal.

5. Take a look at the PIN pad. Do the same pat-down. Is it loose? Can you flip it up or remove it? If you can, do you see another PIN pad below? Call the attention of the security guard or bank personnel. If they’re not around, do not attempt to use it at all.

6. The PIN pad cover is not necessarily safe. Put your hand underneath and try to feel for hidden cameras. Don’t use it if you find one. Report your observation to the proper authority in the location.

7. When attempting to withdraw, ensure that the next person behind you is several feet away. This is one way to keep your PIN safe. Remember, once the fraudsters get a copy of your PIN, it is very easy to transfer data that they have stolen with their card reader onto another card.

At Electronic Network Cash Tellers, Inc. (ENCASH) where I work, we emphasize to our rural bank and cooperative partners the importance of educating ATM and credit cardholders to be vigilant. In many cases, such vigilance aborts  fraud. —Contributed