KUALA LUMPUR, Malaysia -- Malaysian banks are expected to replace magnetic strips with chips on ATM and credit cards in the second quarter of 2002 and early 2003, according to a report in the Financial Times.
Deputy Finance Minister Datuk Shafie Mohd Saleh told reporters the smart card technology would help reduce fraud. He said in the last year alone, there were 331 cases of fraudulent ATM withdrawals amounting to RM551,000 (U.S. $145,000).
Responding to questions on the measures taken by the Finance Ministry to curb unauthorized ATM withdrawals, he said Bank Negara had issued a guideline, Security Standard for Automated Teller Machines, which underlined the minimum required of banks for securing ATM transactions.
Shafie said it would not be feasible to incorporate biometric methods of transaction authorization such as such as scanned thumb prints or faces.
"Whatever security measures we're taking, there is bound to be someone who would figure out ways to breach them," he said, noting that in one case, a deceased pensioner's thumb was chopped off by a relative to obtain the pension every month.
"As for using the face as one of the security features, there is bound to be someone who would use a mask to breach security."
