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It`s time to be alert over ATM booths security

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Published: 10:44, 20 September 2016   Update: 15:18, 26 July 2020
It`s time to be alert over ATM booths security

Mostafijur Rahman Nasim: In an economy where cash is king, ATMs are taking on a greater role in addressing people’s financial needs. The popularity of ATM booths is increasing day by day across the globe.

When banks introduced ATMs in the `70s, many bankers predicted the machines would revolutionize banking and spell the end of branch banks.

Since then, the number of automatic teller machines has proliferated, changing the face of banking as predicted. But they have not eroded the nation`s branch banking system.

Banks typically make money off ATMs through fees. Most do not charge transaction fees as long as customers use their own banks` ATMs. Customers using another bank`s ATM machine usually will have to pay an access fee. While some might grumble about ATM fees, the machines are growing more popular due to additional features and more convenient locations, increasingly including malls and supermarkets.

The movement of ATMs from bank lobbies to grocery stores, shopping centers, airports and college campuses reflect consumer popularity.

During the last 10 years, the number of ATMs nationwide has more than tripled, going from 83,000 machines in 1991 to 273,000 in 2000, according to the American Bankers Association. The number of ATM transactions more than doubled during that decade, going from $6.41 billion to $13.2 billion, it said.

But the rapidly increasing number of ATMs, including many machines now that are not owned or operated by banks, has resulted in a reduction of transactions per ATM, the association said.

When you travel overseas, it is tempting to get a better exchange rate. First off, if you must change currency, usually the worst exchange rates can be found at airport exchange booths. They tend to take advantage of you as you just depart a long airplane ride, are unfamiliar with the country and area and just want to start your trip.

However, if you are in a major international city you may consider departing the airport in search of find other options to change your money. However, you need to do your homework before you leave the airport. If you are traveling to regions where ATMs are rare, you will have little choice but to revert to the usual suspects, if not the airport exchange booth, then the ones at hotels. Make sure to research what`s available before you leave home.

So, evaluating these data, it can be said that ATM booths will lead the economy in future through its service across the globe.

In the high-tech 21st century, there are more ways than ever for travelers to deal with money abroad. The best strategy, financial experts say, is to use a credit card whenever possible and ATM cards to get local cash.

ATM is the oldest of the alternative banking channels and enjoys the highest level of acceptance among customers. Global research firm expects the number of ATMs to double by 2016, with more than 50 per cent being set up in small towns.

Technology is not only making banking convenient for customers, it has also allowed banks to expand their businesses faster and bring down costs. The cost of servicing a customer is the highest at a branch followed by ATMs, online and mobile phones.

But, some recent incidents create tension among the ATM booths user here in capital due to forgery.

Organised criminal gangs are cloning debit cards of bank customers using special devices and withdrawing money from ATM booths.

Members of these gangs would first enter booths by showing fake identity cards and set up microchip-enabled devices with the automated teller machines (ATMs). These devices, mounted with the ATM, would copy information stored on an ATM card when a customer inserts their card into the machine.

Later, the information copied would be used to make fake debit cards and later used to withdraw money from other booths.

The revelation came to light in the first information report (FIR) that the officials of the United Commercial Bank (UCB) filed with the Banani police station on Saturday.

Mahbub Ul Islam Khan, head of UCB’s Fraud Control and Dispute Management of Cards,  Branches Control and Development Division, filed the complaint.

Abdul Ahad, additional deputy commissioner (ADC) of police’s Gulshan Division, told the Dhaka Tribune that the UCB authorities are also providing them with footage from the CCTV cameras installed inside its ATM booths.

However, for the sake of investigation, he did not want to disclose any detail about what they have found by analysing the footage.

The FIR reads that a person, identifying himself to the security guard as a technician from the bank, entered a UCB ATM booth in Banani at 10:42am on February 7 and installed a skimming device on the machine. Later, he collected the copied information, used it to clone cards and withdrew money.

Primarily, the bank has found that Tk1.26 lakh was withdrawn using cloned cards. In an immediate response, the bank has suspended all kinds of debit card transactions and notified the customers about it.

The UCB also said in the complaint that they had not been able to identify the criminal but the security guard would be able to do it if the criminal was brought to him. Moreover, the forger appeared to have attributes of a foreigner.

Names of different hotels, travel agencies, and some bank officials have come up in the investigation of the recent ATM card scam case, said a high official of Dhaka Metropolitan Police (DMP) said.

The Detective Branch of Police in July 2013 busted a gang of four for stealing around Tk 2 crore from ATMs of different banks in Dhaka. Of them, two were IT experts at Mutual Trust Bank, one from Advanced Data Network and the fourth one, the gang leader, was a former employee of Aamra Technologies. In June 2012, a credit card scam involving over Tk 10 crore was detected at the United Commercial Bank (UCB).

The bank identified four of its top and mid-ranking officials, who withdrew the amount from the UCB using 21 credit cards between 2007 and 2012.


In almost all cases of card fraud, bank employees were found to be involved either directly or indirectly, providing fraudsters information about clients.

These types of incidents may create panic among the ATM user, although Bangladesh Bank (BB) took some steps in this regard.

The central bank in a circular directed all banks to install anti-skimming and PIN shield devices at their old ATM booths in next 30 days. BB also said that all the new ATM booths should have the similar devices from the very beginning.

In the directive, the banks asked to store and preserve the video footages of transactions at all ATMs and take necessary steps in case of any suspicious transactions.

BB suggested banks that they should review the transactions at ATMs on random basis and send a monthly report to the central bank on their findings of the regular review.

The banks also advised for providing necessary training to the ATMs guards on their duties to help protect ATMs and check unauthorized transactions there.

BB suggested guards to take extra cautions about the people who enter the ATMs wearing cap and sunglasses and carrying begs.

The central bank also made it mandatory that all banks should ensure automated SMS to their clients’ mobile phones regarding any ATM transaction.

Above all, we hope that the authority will be alert over ATM booths security for the sake of people`s wealth.

risingbd/Dhaka/Feb 29, 2016/Nasim

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