Install anti-skimming devices in ATMs

The Bangladesh Bank (BB) issued Monday a circular making it mandatory for all banks to install anti-skimming devices in their ATM booths by next one month to prevent losses from credit and debit card fraud.
The central bank also asked banks to examine regularly the video footage of transactions in ATM booths regularly and take effective steps, if anything seems suspicious.
At the same time, monthly inspection report must be submitted to BB Payment System Department after regular examination of own ATM booths on random basis, the circular said.   
Meanwhile, the central bank on the basis of its primary investigation suspects that an organised gang, involving some foreigners with sound technological knowledge, was behind the country's first-ever ATM booth heists.
The probe team members have also found that the crimes were committed through the installation of skimming and PIN (Personal Identification Number) capturing devices into the booths.
Observing the video footage of security cameras at two ATM booths and analysing the way the crime was committed, they suspected that a strong local group in nexus with some foreigners might have been involved in the cyber crime.
Members of three probe teams, formed earlier by the Bangladesh Bank (BB), have verbally informed about their initial findings to higher authorities concerned on Monday.
"We have found some clues indicating that a local gang in connivance with some foreigners has committed the crime," a senior BB official told the FE.
The official, who has been closely engaged with the investigation, said the probe teams are still working on the crime to get further clues. Their final and official findings are expected to be submitted to the authorities today (Tuesday).
A foreign national wearing a blue full-sleeve shirt and black trouser with a spectacle and black cap was captured by the security camera entering the United Commercial Bank Limited's (UCBL) Banani ATM booth at 10:42:51 am.
He was seen installing a small skimmer that looks like normal card entry slot and attached to the rain cover before leaving the booth at 10:44:09 am on February 07, according to an investigator.
He also said the central bank has found evidence of engagement of another foreigner in the ATM heist at City Bank's Kalshi booth.
"So, it's crystal clear that a well-equipped local gang in nexus with some foreigners having sound knowledge on ATM technology has committed the financial crime."
Law-enforcers have simultaneously started investigating the country's first-ever ATM booth heist through installing card skimming and PIN capturing devices.
When contacted, Assistant Commissioner (Gulshan Zone) of Dhaka Metropolitan Police (DMP) Md Rafiqul Islam said they have already initiated an investigation into the act of financial fraud following filing of a case by the UCBL.
"We're analysing the video footage that the bank provided us for detecting the criminals involved in the heist. We've not found any specific clue yet, but efforts are going on," he added.    
The BB officials said the central bank has responded instantly, as on an average Tk 150-200 million inter-bank transactions are daily taking place by using both debit and credit cards.
At present, around 7,000 ATM booths are in operation with around 8.5 million debit cards along with 0.5 million credit cards are being used across the country.
The Dutch-Bangla Bank Limited (DBBL) has issued the highest number of debit cards - around 3.5 million, followed by Islami Bank Bangladesh Limited (IBBL) with over 1.3 million.
City Bank Limited accounted for the highest number of credit cards - nearly 0.2 million, followed by Standard Chartered Bank (SCB), Bangladesh with more than 0.11 million, central bank sources said.
When contacted, a senior DBBL official said all the banks should use microchip-based cards like his bank to protect their clients from various forgeries including skimming.
"We've spent Tk 9.50 billion for providing microchip cards, which we call anti-skimming device. That's why we're secured from such crimes despite having the largest client-base," he noted.
The issue of such financial fraud came as a matter of serious concern among 9.0 million cardholders (8.5 million debit and 0.5 million credit) soon after the digital forgery hit the media headlines.
The cardholders also demanded more secured features in the ATM booths for protecting their money.
Currently, 23 switches are operating under National Payment Switch Bangladesh (NPSB), 22 of which are being used by the banks concerned while the remaining one by Information Technology Consultants Limited (ITCL).
BB only gets the record of inter-bank transaction, while the intra-bank transactions are made only by the respective bank's switches. So, the central bank cannot provide data on such transactions, the officials said.
Forty-eight commercial banks, out of 56, are members of NPSB, introduced on December 27, 2012 to facilitate efficient, safe and secure payment system.
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