BATT: Banks implementing safeguards against card-skimming

BANKERS Association (BATT) executive director Kelly Bute-Seaton has expressed concern about card-skimming and encouraged customers to report even small unauthorised transactions.

She was speaking on Friday at the Office of the Financial Ombudsman’s (OFSO) annual breakfast meeting at the Central Bank auditorium, Port of Spain.

She said last year's report from OFSO showed an increase in accounts and transaction complaints received by the banking public, with many of them referring to unauthorised transactions such as card-skimming.

"It is undoubtedly a matter of extreme concern by our banks which have taken prompt action to mitigate efforts by criminals to steal customer funds from their accounts."

She said banks have initiated customer safeguard strategies such as notifications of activity, chip-and pin-technology, and tamper-resistant ATMs.

"At the same time, we urge our customers' co-operation by regularly checking their savings and credit card accounts for unauthorised transactions. Even small transactions should be immediately reported to the bank.

"As custodians of our customers' funds we cannot exonerate ourselves from threats to our customers, but jointly with an informed and vigilant public I have absolutely no doubt that our banks can plug those gaps of vulnerabilities that present themselves in a tech-enabled environment."

Central Bank governor Dr Alvin Hilaire, in his remarks, said commercial banks and other financial institutions are pushing individuals, companies and others to do things electronically. He said in principle, electronic transactions could help to improve financial inclusion, as more people could have their transactions done, and done faster.

"But there is a flip side, which is the possibility of abuse and the risks involved, and then the redress."

He said this may be unfamiliar to institutions used to paper transactions and contracts.

He also questioned what happened when a system was down and a customer could not make an important transaction electronically and missed a deadline.

He also asked, "Suppose there is fraud in their transaction? Suddenly $2,000 has come out of their account and they don't know where it is and they may not even know how to deal with it. How do you talk to the bank? What do you say? Who do you call? When they talk to the bank, they put you on hold. It could be confusing and it could be a lot of panic involved."

Hilaire said electronic transactions are an area that institutions should shore up and be really prepared for.

"Because we don't want something that could help in financial inclusion (leading) to financial exclusion by people saying, 'You see that (electronic transaction)? I don't want any part of that, let me bring in my blue note because I can't deal with this thing.' So we (as financial institutions) have to be aware, and we have to give people confidence."