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Published on October 4, 2007

Currently, the only verification of identity required for cash withdrawal from an ATM is the customer's ATM password. And if ATM cardholders wish to withdraw more than the daily maximum amount they need only quote their ATM number and date of birth when informing the bank by telephone.

Bangkok Bank president Chartsiri Sophonpanich said his bank was considering a solution to the ATM fraud problem. He acknowledged its recent increase and said the tightening of personal information disclosure was a possible remedy, but it had to be studied in more detail.

Earlier, customers demanded a relaxation of requirements for verification of personal information because they wanted a more convenient means of checking their financial information. Therefore, the prospect of tightening the regulations now has to be considered prudently, Chartsiri said.

"Keeping their ATM card password a secret is the most important practice that cardholders should follow to protect them from fraud," he said. "The bank's security system is safe, because it is of international standard."

The ATM-card fraud problem has increased significantly over recent weeks. Some victims have lost large amounts of money. Last month, a Bangkok Bank ATM cardholder lost about Bt530,000. Another customer complained on a local television news programme that he had lost Bt500,000 through plastic-card fraud.

Thai Bankers' Association chairman Apisak Tantivorawong said the Credit Card Club was also considering an answer to the ATM fraud problem.

One particular area in which the problem has intensified is in the use of counterfeit identification cards to open bank-book accounts. The swindlers then apply for ATM cards and begin their acts of fraud.

"Right now, all banks are working with the police to detect the deceivers and banks are considering ways of boosting protection and solving the problem," said Apisak, who is also president of Krung Thai Bank.

"The fraud mainly comes from outside the banks, but if it comes from bank staff, then speaking for Krung Thai Bank, that particular employee will be fired."

Over recent years, credit-card fraud has grown to become a significant problem in Thailand. Some card-issuers have moved to solve the problem by replacing magnetic-stripe cards with more sophisticated chip cards. The advanced technology of chip cards has resulted in better protection.

Somruedi Banchongduang

 The Nation