Singapore banks eye fraud-proof ATMs, credit cards

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dpa German Press Agency
Published: Sunday December 3, 2006

Singapore- Singapore banks are interested in embedding
their credit and automatic-teller machine (ATM) cards with microchips
that will make them virtually fraud-proof, they said Monday.
Already in use in Britain and Western Europe, the cards are more
secure than standard cards because they are much more difficult to
forge. Chip-embedded cards also require a personal-identification
number (PIN).

OCBC Bank told The Straits Times it is evaluating plans to
implement the technology. DBS Bank said it will start embedding chips
in its credit and debit cards next year.

"The decision to introduce chip-and-PIN cards will have an impact
beyond OCBC Bank and the banking industry," spokesman Patrick Chew
was quoted as saying. "Not only do ATMs and ATM cards need to be
upgraded, all retail payment terminals have to be changed."

United Overseas Bank said it was evaluating new security
technologies.

Recent cases of ATM skimming and credit-card fraud have high-
lighted the relative ease with which cards with magnetic strips can
be copied using skimming devices placed on ATM machines and users'
PINs captured with tiny cameras.

The adoption by British banks of the chip-and-PIN technology has
prompted forgers to go abroad to regions that do not have the
technology, including parts of Asia, the report said.

Six Sri Lankans were sentenced last month in Singapore to prison
terms ranging from between four to 10 years, for withdrawing more
than 350,000 Singapore dollars (224,000 US dollars) from UOB ATMS in
the city-state using fake cards carrying information about account
holders in Britain.

Court documents obtained by the newspaper revealed that the
Monetary Authority of Singapore was concerned that the city-state's
status as a financial hub could be tarnished if the country remains
vulnerable to fraud.

© 2006 - dpa German Press Agency