Most banks yet to install ATM anti-skimming devices

Most of the country’s scheduled banks have missed the deadline for installing anti-skimming devices at their automated teller machines (ATM) to prevent fraud.
Bangladesh Bank on February 15 asked the banks to install the devices at their ATM booths within the next one month, but most of the banks are yet to comply with the directive, said BB officials.
Against the backdrop, the central bank in a meeting on Sunday asked the banks to set up anti-skimming devices in the shortest possible time to safeguard the country’s financial transactions through ATM booths.
BB executive director Subhankar Saha presided over the meeting at the central bank headquarters in the capital with senior commercial bankers attending.
The BB asked the banks to submit their updated report anti-skimming device installation on a fortnightly basis.
The BB move to install anti-skimming devices at the ATMs came after a number of clients of four leading private banks — Eastern Bank, United Commercial Bank, Mutual Trust Bank, and City Bank — had become victims of an ATM scam between February 6 and February 12 this year, as the skimmers withdrew more than Tk 20 lakh from their clients’ accounts by forging data of their debit and credit cards.
A BB official told New Age on Monday that some banks had neglected the central bank’s directive to set up anti-skimming devices. They did not even respond to the BB letter in this regard.
On March 6, the central bank in a letter asked the banks to submit their updated report on anti-skimming device installations by March 13, but a number of banks did not send their statements in line with the directive.
The BB data shows that AB Bank, Bangladesh Krishi Bank, Eastern Bank, First Security Islami Bank, Dutch-Bangla Bank, ICB Islamic Bank, Janata Bank, NCC Bank, Social Islami Bank, State Bank of India, Union Bank, Uttara Bank, Midland Bank, and Premier Bank had not installed any anti-skimming devices at their ATMs as of March 13.
Some banks however have recently set up a few anti-skimming devices in their ATMs. Of them EXIM Bank installed 23 devices compared to its 83 ATMs, IFIC Bank installed 10 devices compared to 65 ATMs, Islami Bank Bangladesh 263 devices compared to 500 ATMs, Sonali Bank 50 devices against its 86 ATMs, and Shahjalal Islami Bank 10 devices compared with its 49 ATMs, the BB report showed.
Dutch-Bangla Bank, however, informed the central bank that it is now using jitter technology instead of anti-skimming device to tackle with the skimmers.
The BB did not accept the jitter technology of the DBBL, asking it to set up anti- skimming devices in the shortest possible time.
Fifty-six scheduled banks are now operating more than 7,000 ATM booths across the country.
Another BB official, however, said it will take two to three months for the banks to finish with installing anti-skimming devices at the ATMs, and that was a major cause for some banks failing to meet the BB-set deadline.
The banks have to purchase the device from abroad and issue purchase orders, he said.
The banks have to spend around Tk 80,000 for every anti-skimming device, he said.
Financial transactions in the country’s banking sector through the ATM booths are still not free of risks due to a dearth of anti-skimming devices, he said.

News Courtesy: www.newagebd.net