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| Sunday, 6 July 2003 |
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| News Business Features Editorial
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New legislations to curb credit card frauds by JAYAMPATHY JAYASINGHE The Criminal Investigation Department (CID) has proposed new legislation to tackle credit card and automated Teller Machine (ATM) frauds that have escalated at an alarming rate. A number of local and international banks are understood to have urged for new legislations following the detection of several multi million rupee card frauds. The Central Bank, according to CID sources, is closely studying the proposal. Although no discussion has yet taken place with regard to the formulation of the legislation, sources said a Task Force on credit security and risk management has been appointed to look into the matter. The task force comprises several banks that issue credit cards and Automated Teller Machine (ATM) facilities to customers. Around 1,000 fake credit cards of reputed local and foreign banks are believed to be in circulation. Racketeers are allegedly using these cards to purchase goods which are then billed to the accounts of genuine card holders. "Most purchases have been made via the Internet which is very common these days", CID sources said. Despite several such frauds being exposed by genuine credit card holders some local banks have been reluctant to inform the police. This has hampered several cases not being investigated. Meanwhile the bogus businessmen who masterminded one of the credit card frauds is believed to be in Singapore and according to police sources the assistance of the Interpol will be sought for his arrest. Several persons living abroad had even used forged credit cards to purchase goods via the internet. Tracking down these persons is an extremely difficult task, sources said. Last month a multi-million rupee credit card fraud was busted by the police. Several reputed banks have been affected by the fraud as genuine credit card holders have been billed for non purchases. Some of the cashiers working in shopping malls both locally and abroad have been bribed by credit card crooks to obtain the secret numbers of genuine credit card holders, sources said. Meanwhile, the CID is investigating another massive fraud where a State bank official in a suburban bank had fraudulently drawn Rs 13.8 million by transferring money to another account over a five-year period. |
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