Debit card issuers told to put in place safeguards against fraud

MANILA - Monetary authorities have ordered banks that issue ATM debit cards to protect their clients from fraud by adopting the Europay Mastercard Visa (EMV) chip-enabled technology.

In a statement, the Bangko Sentral ng Pilipinas (BSP) said its Monetary Board has issued a circular containing the guidelines for dropping magnetic strip technology in favor of the more secure EMV chip for ATM debit and prepaid cards.

Credit and ATM cards that rely on the magnetic strip have been susceptible to fraud schemes, including card skimming. In light of this, the BSP had ordered credit card issuers to migrate to the EMV chip technology no later than January 1, 2017.

The recently approved guidelines pertain to proprietary debit cards as well as to cash advance transactions of credit cards made through ATMs. The BSP's latest rules however don't prevent issuers of co-branded cards from adopting safeguards laid down by international payment networks, as in the case of a local bank issuing a debit card whose transactions are accepted by the Mastercard or Visa payment system.

BSP said its latest guidelines are meant to manage risks while the banking system shifts to the EMV chip-enabled technology without disrupting ATM and point-of-sale transactions.

Monetary authorities have given covered banks 60 days from the date of the latest circular to submit their updated EMV migration plans.

source: interaksyon.com

NBI nabs 6 Taiwanese implicated in credit card fraud

MANILA - The National Bureau of Investigation has arrested six Taiwanese nationals allegedly involved in credit card fraud and the duplication of ATM cards. One of them tried to bribe the agents with P500,000, and was promotly slapped with a separate charge of attempted bribery.

A report submitted to NBI Director Nonnatus Caesar Rojas on Thursday named those arrested by members of the NBI Cybercrime Division as: Cheng-Yen Yu, 25; Chih-Cheng Chang, 35; Chia-Hung Hung, 26; Sen-Yuan Wu, 24; Chun-Kai Tsou, 25 and Wen-Hao Wu, 26, all with address at Unit 4D, Regency Park Townhomes, J. Abad Santos Hi-Way corner E. Aguinaldo Street, Clark Special Economic Zone in Pampanga.

The six have been charged with violation of Republic Act 8484 or the Access, Devices, Regulation Act of 1998 before the Pampanga Prosecutor's Office.

Chih-Cheng Chang is also facing an additional complaint for corruption of public officials for attempting to bribe the NBI operatives.

Seized by the NBI-CCD team from the suspects were the P500,000 cash used in trying to bribe the agents, counterfeit automated teller machine cards and counterfeit credit cards, electronic gadgets used in illegal duplication of credit cards and ATM cards, and documents.

The NBI arrested the six Taiwanese nationals last June 4 after a series of surveillance operations.

Found in the suspects' possession were several electronic gadgets, devices, ATM cards, credit cards, and documents with Chinese characters which were being used and intended to be used in the illegal activities of duplication, unauthorized use/access of credit cards/ATM cards.

source: interaksyon.com