ATM Fraud : How to reduce ATM risk ?

As the banking system in Nepal moves towards modern services and facilities, technological risks have also increased. The biggest risk in recent times has been the rise in ATM services.

According to Nepal Rastra Bank, banks and financial institutions in Nepal have so far distributed 4.657 million debit cards, 52,000 credit cards and 82,000 prepaid cards, from which money can be withdrawn from 1,000 ATM booths across the country. In addition, payments can be made to various supermarkets, shops or services.

As ATMs are considered technically secure, it has recently become a target for hackers. Apart from the case of making fake ATM card by hacking the PIN number by withdrawing money by connecting micro camera in the ATM card, the frightening news of ATM hacking by stealing the PIN code has become public. Police have composed to the parts of the participants in this case but has not reduced the risk of ATM.

Police have urged all ATM users to change their PIN code, but this alone is not enough for ATM security. 

1. Monitoring of transactions: Banks need to operate their ICT security branch to monitor unnatural transactions through ATM cards. Withdrawal of large amount of money from ATM card, 'hitting' ATM several times in one day but withdrawing only small amount of money, in the past, customers who had less transactions (transactions) used excessive ATM every day, it is appropriate to report to the police with contact with the customer concerned.

2. Increase security surveillance at ATM booths: Police investigations have shown that most ATM hacks occur in places without security personnel or CCTV. Therefore, security surveillance must be increased in places where there is more business.

3. Network ATMs Targeted: Most network ATMs have been found to be targeted by hackers. So adopting a modern network security system is the best solution.

4. HD-Three-Sixty CCTV: In the name of reducing costs, using cheap and outdated versions of CCTV also increases the risk ratio, so using high-definition (HD) and all-around visual surveillance CCTV is the best solution.

5. Software Upgrades: Another key method for ATM security is for banks to make their related software more modern and secure.

6. Regular Customer Awareness: Banks should conduct regular customer awareness programs on how to conduct secure transactions with the growing number of ATM users. For this, informational information should be flowing from radio, television and newspapers.

7. Transaction details check: The ATM user has to change his / her PIN code from time to time as well as get the transaction details (statement) from the banks and compare it with the transaction. If there is any suspicious activity, the best way is to inform the bank and the cyber crime unit of the police.