Kazi Zahidul Hasan :
Leading bankers on Sunday expressed concern over the rising incidents of fraudulent transactions through ATM booths urging the central bank to upgrade the security standards of National Payment Switch Bangladesh (NPSB) to prevent such electronic theft.
The central bank earlier introduced the NPSB in order to facilitate interbank electronic payments originating from different channels like ATM, Point of Sales (POS), Internet, Mobile Devices etc.
“Automated Teller Machines (ATMs) have become most popular channels for electronic theft, with fraudsters using fake electronic cards of various banks to channel the fraudulent transactions,” Ali Reza Iftekhar, Chief Executive Officer (CEO) of Eastern Bank Limited, told The New Nation on Sunday.
Eastern Bank on Friday detected 21 suspicious card transactions from ATM booths of United Commercial Bank forcing it to temporarily shut down transactions through the NPSB to safeguard the interests of clients.
“The latest incident suggests that the security system of NPSB is not adequate to prevent the electronic theft. Such a security lapse exposes banks vulnerable to frauds,” said Ali Reza Iftekhar.
He observed that the NPSB can only process data from the magnetic stripe and not from secure chips creating an opportunity for the fraudsters to fraudulent transactions mostly through ATM booths.
“We have already conveyed our concern to the central bank urging it to adopt global best practices with installation of latest version of security system in its NPSB,” he added.
“e-theft is rising alarmingly. But no effective steps is yet in sight to fight against the crime,” a senior executive of a private commercial bank, told The New Nation on Sunday, asking not to be named.
He said, the fraudsters entering the ATM booths of different banks are making fraudulent transactions by fake debit and credit cards causing financial losses for the banks.
Rising fraudulent transactions are also harming reputation of the respective banks, he added.
The official further said the criminals seem to be making such transaction taking advantage of security lapses of the NPSB.
“The current security system of NPSB is not adequate for fraud prevention, detection and remediation. So, the central bank should take the issue seriously and go for all-out efforts to prevent such crime,” he added.
At present, 56 banks are operating in the country and of them, 48 are connected with the NPSB, according to Bangladesh Bank(BB).
The total number of card holders (debit and credit) stands at 98 lakh who are using them in ATM and point-of-sales centres in the country to cash transcations.
“It is absurd…there is no weakness in NPS’s security system,” AFM Asaduzzaman, General Manager and Assistant spokesperson of the BB, told The New Nation yesterday refuting the bankers’ allegation.
He said, the fact is that fraudsters hacked customers’ information and took away their money.”
“BB is continuously upgrading the security system of NPS and the process will go on,” he noted.
