SMS will help check credit card fraud
The number of credit and debit card theft and fraud is on the rise in
Sri Lanka and globally due to the lack of a protective mechanism and the
callous use of cards.
Though there are no statistics on the exact number of thefts and
frauds and the amount of money card users have lost, bank sources said
that card users have lost much money due to illegal credit card
transactions.
Credit and debit card users said that while many banks have SMS
alerts to inform card users of transactions, some banks do not have a
systematic protective mechanism which is vital to trap those who engage
in fraud and curb the number of illegal transactions.
Banks have protective mechanisms but officials of some banks declined
to comment on the mechanisms. A Commercial Bank Card Centre official
said that SMS alerts have helped in a big way to minimise fraudulent
transactions and ensure the safety of credit and debit cards.The SMS
alerts inform card users of transactions within a minute of the
completion of a transaction.
“We have not had many instances of card theft or fraudulent
transactions.The bank has refunded over 75 percent of illegal
transactions depending on the bank's relationship with the customer.
However, the customers have to pay a fee and register to get this
facility,” a senior executive, who wished to remain anonymous, said. An
official of the NDB Bank said that the bank's debit and credit cards
have Visa facilities and added that the SMS alerts is also used as a
protective mechanism to avert illegal transactions.
“The SMS alert is a protective mechanism which card users should ask
for when applying for a card,” he said.A Bank of Ceylon, Credit Card
Division official said that debit card users have the option to request
the bank to permit only cash withdrawals which requires a PIN number.
“We have requested customers to inform the bank when they lose their
cards to cancel its validity,” he said. Security from fraudulent
transactions through cards are not always dependent on the bank that
issued it and most cards systems are operated through major card
networks, Visa, MasterCard, Discover and American Express.They boast
zero-dollar liability guarantees for unauthorised credit card
transactions and signature debit card transactions.
According to a consumer fraud liability study in the US, consumer
liability for PIN debit transactions depends on the card network and the
manner in which the transactions are processed.Discover extends
zero-dollar liability to debit card purchases verified by PIN, while
American Express does not offer debit cards with PINs.
Visa cardholders are covered only for unauthorised PIN debit
transactions processed over Visa’s network, but consumers have no way of
knowing how a given transaction will be processed. MasterCard does not
provide additional liability coverage for PIN debit transactions.
-LF
|