'Skimming' constitutes new challenge to banks

'Skimming' - a new cybercrime swindling of debit cards from abroad - poses new challenges to the country's financial sector that now needs more online guards and devices to the ATM machines for safe transactions. Recently, data of some 600 debit cards has been skimmed through several ATMs of a private bank and later unauthorized cash transactions were conducted by using this data. As per initial estimates Rs 10 million has been withdrawn through skimming of debit cards.
Industry sources said the affected private bank has taken up this issue with State Bank of Pakistan (SBP) and Pakistan Banks Association (PBA) to outline a strategy to avoid such cases in the future, he added. SBP's Payment System Department is also in touch with the officials of affected bank and compiling the details of incident. "We are analyzing whether or not that private bank was following the State Bank's SOPs for secure transactions," said SBP spokesman.
Industry sources said that 'Skimming' - a new cybercrime poses some new challenges to the banking and financial sector of Pakistan and now needs more security measures and devices to the ATM machines to avoid such incidents in future. In all cases, skimming device along with a spy camera or pin keypad panel was used at ATMs to capture cards' data, they informed.
"There is need to introduce some new security measures for plastic cards for safe and secure transactions. This may be includes new pin code for any transaction, chip base and biometric cards," they added.
So far, they informed, a private Islamic bank had adopted biometric technology to make the banking transactions more secure. Cardless or biometric service is secure and is also convenient to use for customers in both urban and rural areas of Pakistan. With biometric technology, customers can use ATM facility with just a single thumb impression. "We can ensure secure cash withdrawal and transaction with biometric technology," industry sources said.
A top official of the affected bank said on Monday that the cards used on these ATMs have already been blocked to stop further withdrawal of cash and accordingly an investigation was initiated to investigate the incident. About 9 to 10 ATMs of two cities, ie, Islamabad and Karachi were used for skimming of debit cards. "We are facilitating customers and issuing fresh debit cards and entire amount, lost due to skimming, will be reimbursed to customers," he said.