Wednesday February 20, 2019
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Sri Lanka ATM users asked to use microchip cards amid fraud

Feb 07, 2019 07:05 AM GMT+0530 | 0 Comment(s)

ECONOMYNEXT - The Central Bank has advised users of automatic teller machines (ATMs) to only use cards with embedded microchips to avoid ATM fraud and also keep track of transactions.

So-called EMV cards with an embedded chip was a joint development of Europay Mastercard and Visa payment systems.

"In order to strengthen the security of ATM transactions, customers are required to use EMV-enabled payment cards," the Central Bank said in a statement.

"Accordingly, the Central Bank wishes to inform customers to exercise due care and vigilance when using payment cards and ATMs in order to ensure the safety of ATM transactions.

"Any unidentified or unauthorized transactions and lost or misplaced cards should be notified to the relevant bank, immediately."

The Central Bank said customers who did not yet have EMV cards should request their bank for a replacement.

The statement came amid reports that data had been stolen from ATM cards in Sri Lanka. In the past, authorities have found foreign fraudsters involved in such scams.

The full statement is reproduced below.

Ensuring the Safety of Payment Card Transactions

Payment cards provide customers the convenience of withdrawing cash through Automated Teller Machine (ATM) network and transacting through merchants worldwide. However, there is a possibility that ATM and card reading machines can be abused by criminals in order to steal customer funds from their accounts.

To mitigate such incidents, international payment card security standards and best practices have been adopted in Sri Lanka’s ATM and payment card network, such as issuance of cards with increased security which have an electronic chip (EMV) and provide for SMS alerts for all electronic transactions.

Few incidents of fund withdrawals using fraudulent payment cards were reported in the recent past. Central Bank of Sri Lanka, Lanka Clear (Pvt) Limited and licensed banks have initiated several measures, in addition to measures that are already in place, to mitigate such situations and enhance the security of customer funds while ensuring the safety of the banking system.

Efforts of banks, payment card issuers, acquirers and regulators need to be supported and recognized by customers in order to safeguard any payment system.

In order to strengthen the security of ATM transactions, customers are required to use EMV enabled payment cards. The EMV enabled cards carry an electronic chip which is visible at the front of the card. If the card used by a customer is not EMV enabled, a request can be made from the relevant bank to issue an EMV enabled card.

Accordingly, the Central Bank wishes to inform customers to exercise due care and vigilance when using payment cards and ATMs in order to ensure the safety of ATM transactions. Any unidentified or unauthorized transactions and lost or misplaced cards should be notified to the relevant bank, immediately.
 

(Colombo/Feb07/2019 - SB)


 

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