DEPOSITS ripped off due to automated teller-machine (ATM) fraud rose 26 percent, from P175 million in 2012 to P220 million in 2013, according to a legislator.
Rep. Roman Romulo of Pasig City said depositors lost a total of P400 million in 2,872 cases of ATM fraud, mainly card-skimming, from 2012 to 2013.
“These losses do not include the sum lost by cardholders due to conventional ATM robberies or holdups at gunpoint,” he said over the weekend.
Citing Bangko Sentral ng Pilipinas (BSP) figures, Romulo said in 2013, some P220 million in deposits were looted from accounts due to the proliferation of illegal devices capturing personal identification numbers (PINs) on ATMs.
The amount was P45 million, or 26 percent, higher than the P175-million deposits ripped off in 2012 due to the covert copying of information from the magnetic strip of an ATM card.
Card-skimming refers to the illegal capture of a cardholder’s PIN, mainly via a “skimming plate” sneakily installed by scammers on an ATM. This enables the perpetrator to create a cloned card and withdraw from the victim’s account.
The scammer then uses the cardholder’s personal and account details to borrow money or take out loans in the victim’s name.
Meanwhile, Romulo credited the Philippine National Bank (PNB) for its ATMSafe, which provides ample insurance protection and benefits to cardholders.
“We consider PNB’s ATMSafe as a groundbreaking cardholder-friendly initiative,” Romulo said.
Romulo is the author of House Bill 5036—the proposed ATM Theft Insurance Act—which seeks to require all banks to extend financial protection to their cardholders against losses due to fraud or robbery.
“Banks are duty-bound to safeguard customers and their deposits against all forms of attacks at all times,” Romulo said.
PNB’s ATMSafe pays up to P50,000, or the card’s daily withdrawal limit, whichever is less, to replace cash stolen during an ATM robbery, or when the insured loses cash due to the tampering or mechanical malfunction of an ATM.
In case of death as a result of an ATM mugging, the cardholder’s beneficiary will receive P112,500 benefit payment. If the cardholder is hospitalized due to an ATM assault, the insured is entitled to P2,250 daily benefit payments for up to 30 days.
ATMSafe also pays up to P11,250 to enable the cardholder to replace documents such as government-issued ID cards lost during an ATM stickup.