Customers of one of the country’s leading commercial banks are being warned to keep a close watch on their account transactions as police investigate a possible fraud scheme involving Automated Bank Machines (ABM).
Scotiabank has reportedly encountered problems with funds disappearing from several of their clients’ accounts.
Managing Director of Scotia Bank Minna Israel confirmed to the Nassau Guardian yesterday that there was an issue of “fraud when dealing with the Automatic Banking Machine.”
“The police locally are investigating the problem and all of our customers that have been affected have been reimbursed,” she said.
Mrs Israel declined to release further information on the matter, such as how much money was involved and how many customers were affected, only noting that the customers were all contacted on an individual basis. Up to press time the Guardian was unable to ascertain the number of clients affected by the scheme or how much money was involved.
However, one source went so far as to say “it was not a large amount.” He continued that “Initial information from the bank suggests that the missing funds is not an inside job, but the work of some foreign entity accessing clients’ accounts via the Internet.”
In an e-mail circulating yesterday, all ATM/ABM cardholders were warned that persons are putting devices over the card slot that scans the PIN number and magnetic strip. Allegedly, cards are then made up and these persons withdraw monies from the ATM machines in different countries. However, the Guardian was unable to confirm this with local police.
But, it is understood that the financial fraud scheme has also caught the attention of the Clearing Banks’ Association. The association is so concerned that it is cautioning the public concerning the “isolated cases of fraudulent activities carried out on unsuspecting bank customers while conducting ABM/ATM transactions.”
In its effort to safeguard the integrity on the banking system, the Association offered several suggestions to customers conducting ABM/ATM transactions:
* If you detect anything unusual about an ABM/ATM or point of sale (POS) terminal, do not use it – report it to the police or your financial institution.
* When using the ABM/ATM, be very vigilant about the surroundings and other individuals in the vicinity.
* Shield your personal identification number (PIN) when using your card.
* Never lend your card to others or disclose your PIN.
* Choose a PIN that cannot be easily identified if your card is lost or stolen.
* Pay close attention to your monthly bank statements and report any discrepancies to your financial institution.
When contacted on the matter, one police official reported that the matter was under investigation. But, he revealed “Scotiabank has really not disclosed much information to us, other than what we have heard on the news at this point.”
Central Detective Unit head, Chief Inspector Marvin Dames, could offer no information on the matter.
“As far as I know nothing official would have been reported to police today. We have no official complaint with respect to it,” he told the Guardian.
By: KEVA LIGHTBOURNE, The Nassau Guardian
