Post by Admin on Dec 4, 2015 8:28:03 GMT 8
Banks Migrating to Chip-based ATM Cards to Prevent Fraud
MANILA - The banking industry is bracing for a massive change in ATMs throughout the country as they start to convert 62 million cards from magnetic strip to EMV chip-based cards.
They also advised cardholders on some strategies to use especially that more people are expected to use the ATM machines in time for the Christmas rush.
Melchor Plabasan, acting deputy director of Bangko Sentral ng Pilipinas' Core IT Specialists Group, said that under their Information Technology Risk Management Guidelines, all banks in the country are required to migrate from the present magnetic strip type ATM cards to Europay Mastercard Visa or EMV chip-based ATM cards by January 1, 2017.
"Chip-based card has microprocessor, like a small computer that contains all information for transactions. It has a lot of security features which is impossible to copy or clone," Plabasan said.
It has been proven in other countries that chip-based cards were able to reduce ATM frauds by 80 percent. He said some banks will start the process of migration and changing of ATM cards by the first three months of 2016.
But while cardholders are awaiting the change in their ATM cards, BSP has also required banks to install an anti-skimming solution in all 19,000 ATM terminals throughout the country.
"Once na makadetect ito ng foreign object sa mga ATM terminals, mag-shut down s’ya automatically," he said.
However, Plabasan noted that ATM security is a shared responsibility.
Cardholders should also be vigilant and cautious in using ATM terminals. BSP advised cardholders to cover with their hands when encoding the PIN even if the machine has a cover for the pin pad.
Plabasan explained that fraudsters' cameras are now being installed on the cover itself. He also advised to look into the pin pads itself.
"Ginagawa ko, kinakapa ko ang pin pad. Kung medyo nakaangat, and if there's any part na medyo loose, that's a red flag," he said.
Plabasan said ATM terminals in the malls are now usually the target of fraudsters.
"Mas nagiging matapang ang nga fraudsters ngayon. Mas type nila ‘yung high-traffic areas kagaya ng mga malls," he said, "generally, safer ang machine na located within a branch".
Plabasan also advised public not to use ATMs as wallets. "BSP is promoting cash less payments, instead of withdrawing, use your ATM debit cards to pay for what you bought" he said.
BSP said they are also working on cybersecurity guidelines that will protect the interest of cardholders in using their accounts for online transactions.
Plabasan said there is a high possibility that once EMV chip-based cards are in place, fraudsters will target online transactions to capture the cardholders information.
Joseph Victor Montenegro, Bank of the Philippine Islands assistant vice president for ATM channel management, said the changing of cards would a be a challenge for the banking industry.
At present BPI has around 7 million ATM cardholders, one of the largest in the country. Montenegro said the conversion of their technological software and hardware systems from magnetic strip to EMV chip-based cards have begun, after which, cards will be replaced sometime next year.
BPI is aiming to complete the transition by the first day of January 2017.
Montenegro said chip-based cards have proven to prevent ATM frauds and countries around the world are converting to such system.
He explained that in the present magnetic strip cards, criminals would only need the magnetic strip data and PIN to access one’s ATM account.
But for chip-based cards, Montenegro said, "Mas mahirap makopya ang data na nasa chip kaysa mag stripe… That’s the best way to beat this."
BPI, however, has yet to come up with guidelines on how their 7 million cardholders would convert from magnetic strip to chip-based cards. They are encouraging cardholders to update their contact numbers, addresses and email for easier communication and access when they start distributing the chip-based cards.
Montenegro said customers could simply call the bank's hotline numbers, or log on to the bank's online express website to update their information.
MANILA - The banking industry is bracing for a massive change in ATMs throughout the country as they start to convert 62 million cards from magnetic strip to EMV chip-based cards.
They also advised cardholders on some strategies to use especially that more people are expected to use the ATM machines in time for the Christmas rush.
Melchor Plabasan, acting deputy director of Bangko Sentral ng Pilipinas' Core IT Specialists Group, said that under their Information Technology Risk Management Guidelines, all banks in the country are required to migrate from the present magnetic strip type ATM cards to Europay Mastercard Visa or EMV chip-based ATM cards by January 1, 2017.
"Chip-based card has microprocessor, like a small computer that contains all information for transactions. It has a lot of security features which is impossible to copy or clone," Plabasan said.
It has been proven in other countries that chip-based cards were able to reduce ATM frauds by 80 percent. He said some banks will start the process of migration and changing of ATM cards by the first three months of 2016.
But while cardholders are awaiting the change in their ATM cards, BSP has also required banks to install an anti-skimming solution in all 19,000 ATM terminals throughout the country.
"Once na makadetect ito ng foreign object sa mga ATM terminals, mag-shut down s’ya automatically," he said.
However, Plabasan noted that ATM security is a shared responsibility.
Cardholders should also be vigilant and cautious in using ATM terminals. BSP advised cardholders to cover with their hands when encoding the PIN even if the machine has a cover for the pin pad.
Plabasan explained that fraudsters' cameras are now being installed on the cover itself. He also advised to look into the pin pads itself.
"Ginagawa ko, kinakapa ko ang pin pad. Kung medyo nakaangat, and if there's any part na medyo loose, that's a red flag," he said.
Plabasan said ATM terminals in the malls are now usually the target of fraudsters.
"Mas nagiging matapang ang nga fraudsters ngayon. Mas type nila ‘yung high-traffic areas kagaya ng mga malls," he said, "generally, safer ang machine na located within a branch".
Plabasan also advised public not to use ATMs as wallets. "BSP is promoting cash less payments, instead of withdrawing, use your ATM debit cards to pay for what you bought" he said.
BSP said they are also working on cybersecurity guidelines that will protect the interest of cardholders in using their accounts for online transactions.
Plabasan said there is a high possibility that once EMV chip-based cards are in place, fraudsters will target online transactions to capture the cardholders information.
Joseph Victor Montenegro, Bank of the Philippine Islands assistant vice president for ATM channel management, said the changing of cards would a be a challenge for the banking industry.
At present BPI has around 7 million ATM cardholders, one of the largest in the country. Montenegro said the conversion of their technological software and hardware systems from magnetic strip to EMV chip-based cards have begun, after which, cards will be replaced sometime next year.
BPI is aiming to complete the transition by the first day of January 2017.
Montenegro said chip-based cards have proven to prevent ATM frauds and countries around the world are converting to such system.
He explained that in the present magnetic strip cards, criminals would only need the magnetic strip data and PIN to access one’s ATM account.
But for chip-based cards, Montenegro said, "Mas mahirap makopya ang data na nasa chip kaysa mag stripe… That’s the best way to beat this."
BPI, however, has yet to come up with guidelines on how their 7 million cardholders would convert from magnetic strip to chip-based cards. They are encouraging cardholders to update their contact numbers, addresses and email for easier communication and access when they start distributing the chip-based cards.
Montenegro said customers could simply call the bank's hotline numbers, or log on to the bank's online express website to update their information.