Deception committed with the use of technology has emerged as a big threat in the banking sector with the police arresting three people involved in ATM fraud last week alone.
The Central Investigation Bureau has detained Kewal Pratap Rana of Lalitpur, Bir Bahadur Bohora of Badagaun, Salyan and Naresh Kumar Agrawal of Naxal, Kathmandu on the charge of withdrawing money from other people’s accounts by using fake ATM cards.
The police said they picked up Rana on Sunday from Saleways Department Store in Lalitpur when he was using a bogus ATM card on its POS machine.
Likewise, Bohora (aka Bobby, Aakash and Deepak KC) and Agrawal were apprehended from Kamal Pokhari, Kathmandu.
Both of them were found to be misusing ATM cards of several banks by reprogramming them. Bohora is a temporary resident of Madhyapur Thimi.
“We caught Rana after receiving a complaint from Saleways which had been informed by Himalayan Bank that the card being used for payment was counterfeit,” said CIB Spokersperson Superitendent of Police Pitambar Adhikari. “Bohora and Agrawal were arrested after Rana informed on them.”
The police seized 18 ATM /VISA cards from Bohora and Agrawal issued by banks and financial institutions in Nepal, India and Bahrain in the names of various persons.
The police also raided Bohora’s residence and found many ATM /VISA cards with falsified data and a machine used to reprogram them. The police have tracked down an unidentified Nigerian citizen who was helping Bohora with the fake data code.
“We have obtained a number of email conversations between those arrested and the Nigerian citizen, and have intensified our investigation,” said Adhikari.
They are trying to the find out whether the Nigerian national is operating from Nepal or outside, he added.
Meanwhile, bankers said that they were encountering constant attempts to steal money using technology. “The latest attempt was made at our Thamel ATM counter on Oct 22,” said Rajan Amatya, deputy general manger of Nepal Investment Bank. “However, the ATM cards used by the fraudsters were retained by the machine as the accounts from which they were trying to withdraw money had been suspended.”
He added that many other attempts had been thwarted due to the strong system put in place by his bank. “We have suspended eight to nine accounts that were being used to cheat people by enticing them with prizes and other opportunities,” Amatya said.
Technology enabled fraud became the subject of closer scrutiny after a series of thefts at varied BFIs including H&B Development Bank, Himalayan Bank and Nabil Bank with the involvement of their present or former employees.
Nepal Rastra Bank and the police have blamed a weak security system in the banking industry for the increase in such incidents.
The central bank has issued many circulars ordering BFIs |to strenghren their security system and take measures to reduce operational risks. Recently, it asked them to maintain separate assessments of operational risks and submit a report.
A senior NRB official said technoligy-enabled banking frauds are being found committed in new ways in recent years and the trend is on the rise.
“IT and human reosurnces (employees) are the two areas were vulnarablities have exisited,” the official said. “That’s why we have increased the penalty to 5 percent capital charge from ealrier 2 percent for operational risk.”
Technology-savvy thieves have increased with the trend in the country’s banking system to use new technologies to provide services. Besides the use of bogus ATM cards, attempts to steal money by stealing the passwords of depositors having e-banking accounts have also appeared in recent months. According to the central bank, the number of debit card holders in the country reached 3.58 million as of mid-August 2013.
CIB Spokersperson SP Adhikari said the growing use of plastic money had given a boost to fraud cases as it has made things easier and safer for thieves. “Such fraud cases happen in many countries across the globe, not only in Nepal,” he added.
source: the kathmandu post,28 Oct 2013
LINK
The Central Investigation Bureau has detained Kewal Pratap Rana of Lalitpur, Bir Bahadur Bohora of Badagaun, Salyan and Naresh Kumar Agrawal of Naxal, Kathmandu on the charge of withdrawing money from other people’s accounts by using fake ATM cards.
The police said they picked up Rana on Sunday from Saleways Department Store in Lalitpur when he was using a bogus ATM card on its POS machine.
Likewise, Bohora (aka Bobby, Aakash and Deepak KC) and Agrawal were apprehended from Kamal Pokhari, Kathmandu.
Both of them were found to be misusing ATM cards of several banks by reprogramming them. Bohora is a temporary resident of Madhyapur Thimi.
“We caught Rana after receiving a complaint from Saleways which had been informed by Himalayan Bank that the card being used for payment was counterfeit,” said CIB Spokersperson Superitendent of Police Pitambar Adhikari. “Bohora and Agrawal were arrested after Rana informed on them.”
The police seized 18 ATM /VISA cards from Bohora and Agrawal issued by banks and financial institutions in Nepal, India and Bahrain in the names of various persons.
The police also raided Bohora’s residence and found many ATM /VISA cards with falsified data and a machine used to reprogram them. The police have tracked down an unidentified Nigerian citizen who was helping Bohora with the fake data code.
“We have obtained a number of email conversations between those arrested and the Nigerian citizen, and have intensified our investigation,” said Adhikari.
They are trying to the find out whether the Nigerian national is operating from Nepal or outside, he added.
Meanwhile, bankers said that they were encountering constant attempts to steal money using technology. “The latest attempt was made at our Thamel ATM counter on Oct 22,” said Rajan Amatya, deputy general manger of Nepal Investment Bank. “However, the ATM cards used by the fraudsters were retained by the machine as the accounts from which they were trying to withdraw money had been suspended.”
He added that many other attempts had been thwarted due to the strong system put in place by his bank. “We have suspended eight to nine accounts that were being used to cheat people by enticing them with prizes and other opportunities,” Amatya said.
Technology enabled fraud became the subject of closer scrutiny after a series of thefts at varied BFIs including H&B Development Bank, Himalayan Bank and Nabil Bank with the involvement of their present or former employees.
Nepal Rastra Bank and the police have blamed a weak security system in the banking industry for the increase in such incidents.
The central bank has issued many circulars ordering BFIs |to strenghren their security system and take measures to reduce operational risks. Recently, it asked them to maintain separate assessments of operational risks and submit a report.
A senior NRB official said technoligy-enabled banking frauds are being found committed in new ways in recent years and the trend is on the rise.
“IT and human reosurnces (employees) are the two areas were vulnarablities have exisited,” the official said. “That’s why we have increased the penalty to 5 percent capital charge from ealrier 2 percent for operational risk.”
Technology-savvy thieves have increased with the trend in the country’s banking system to use new technologies to provide services. Besides the use of bogus ATM cards, attempts to steal money by stealing the passwords of depositors having e-banking accounts have also appeared in recent months. According to the central bank, the number of debit card holders in the country reached 3.58 million as of mid-August 2013.
CIB Spokersperson SP Adhikari said the growing use of plastic money had given a boost to fraud cases as it has made things easier and safer for thieves. “Such fraud cases happen in many countries across the globe, not only in Nepal,” he added.
source: the kathmandu post,28 Oct 2013
LINK
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