CLOSED DOOR MEETING: Councilor Dave Tumulak meet with officials of the Philippine National Police (PNP) and representatives of the Cebu Banker’s Association (CBA) to discuss the recent spate of ATM scams in Cebu. At least ten victims attended the meeting asking for help (CDN PHOTO/JUNJIE MENDOZA).
Following a string of unauthorized automated teller machine (ATM) withdrawals in Cebu by still unidentified scam artists, a member of the Cebu City Council, who was himself a victim, is now drafting a law that will require all banks in the city to install closed-circuit television cameras (CCTVs) in their ATM areas and for banks to inform depositors, through text message, of withdrawals amounting to at least P5,000.
Cebu City Councilor Dave Tumulak, deputy mayor for police matters, also wants to require banks in the city to monitor their ATMs hourly to check for skimming devices which may be attached.
Skimming involves the use of an electronic device attached to the ATM that records personal information from the card, including the pin number, giving scammers access to a client’s bank account.
Tumulak, a second-term city councilor, told reporters last week that he was himself a victim of the scam with the hacking of his Land Bank of the Philippines (LBP) payroll account where bank scam artists had taken an unspecified amount of money during withdrawals from September 19 to Nov. 9.
The councilor was outraged over what he described as the lack of cooperation from the bank and its failure to inform him beforehand of the unauthorized withdrawals, amounting to about P50,000 a day.
Tumulak said that they could not as yet confirm if the unauthorized withdrawals were done through skimming devices.
“Why? Because until now, not even a single bank surrendered any confiscated skimming device, not a physical feature of the item, not even once,” he said.
“If skimming devices were used, these need power supply to operate. Where can they get the supply? Who can access that?” asked Tumulak.
System security breach
Tumulak said police are also looking into the possibility that there was a system security breach in the banks where there had been reported cases of unauthorized withdrawals.
“Only the banks and a certain private company for the technical aspect is there during loading of money on the machine. They are also the ones tasked to do machine preventive maintenance,” said Tumulak.
“I’m having doubts,” he said.
Tumulak met with 10 victims of the ATM scam on Monday, along with representatives from the Cebu City Police Office and the Cebu Bankers’ Club (CBC).
He told them about his plans to pass an ordinance which he hoped could be implemented immediately.
At least 15 people fell victim to the recent ATM scam with a total amount of almost P3 million surreptitiously withdrawn from their accounts.
Based on investigation, most of the victims held a payroll account.
“I will be requiring all the banks to install closed-circuit television cameras (CCTVs) because there are some (banks) that do not have (CCTVs),” said Tumulak.
Banks, he said, would also have to hand over to the police the pictures or videos of transactions made by suspected ATM scammers.
He will also request banks to refrain from imposing a P150 fee for depositors who may want to secure their bank statements. “We have entrusted our money to the banks. If there is no trust, people will put it in their piggy banks instead. If bandits would know people are keeping their money in their houses, there will be crimes everywhere,” Tumulak warned.
Cebu Bankers’ Club
During the meeting at City Hall, CBC president Maximo Rey Eleccion promised to assist the victims.
Eleccion said that CBC will send out a request to all their bank members for necessary information which could help police to fast track their investigation into the ATM scam so that the victims’ money could still be retrieved.
“The victims were able to share their experiences. Naay nanghilak (Some of them cried),” Tumulak told reporters, referring to the tone of the closed-door meeting.
The victims were also relieved that help was coming, Tumulak said.
As a way to prevent the scam from happening again, officials urged depositors to double check their ATM cards for any unauthorized withdrawals and to report this immediately to the concerned bank so that further card withdrawals could be blocked.
Tumulak also warned the public of scanning devices that can copy the card’s information even when the cards are placed in bags or wallets.
CBC suggested that ATM card holders should instead go to their respective banks and request to change their magnetic strip cards to Europay, MasterCard and Visa (EMV) cards which store data on integrated circuits and microchips.
Tumulak said these types of cards are safer than the magnetic strip cards.
PNP investigation
Over at the Philippine National Police (PNP), Chief Supt. Noli Taliño, director of the Police Regional Office in Central Visayas (PRO-7), appealed for cooperation from all sectors to address reports of ATM skimming.
“The police can only do so much. We need the cooperation of all stakeholders,” Taliño said.
Police investigators are pursuing a still to be identified man, who appeared to be a foreigner, for his alleged involvement in the ATM scams in the cities of Cebu and Naga, southern Cebu.
“I directed the city and provincial police directors to coordinate with bank managers and their security officers to address the problem,” Taliño said.
In a separate interview, Senior Supt. Joel Doria, director of the Cebu City Police Office, said that he has asked the Criminal Investigation and Detection Group to lead the investigation on the ATM skimming.
Meanwhile, the Cebu Provincial Police Office led by Senior Supt. Eric Noble has coordinated with PNP’s Anti-Cyber Crime Unit in efforts to identify the suspect.
“I urged people to monitor their ATMs. If they find something wrong with their ATMs, they should report it immediately to the banks and the police,” Noble said.