News

ATM scams highlight need for smart cards

April 2, 2006

Stuff: New Zealand's first ATM skimming fraud has netted almost $50,000 (U.S. $35,900) and triggered suggestions that banks should follow overseas examples and combat the crooks with smart cards. Last month, criminals harvested information from 35 cards and took more than $47,000 from a BNZ ATM. Consumers' Institute chief David Russell said New Zealand banks were lagging behind their international counterparts. He said that because the four big banks had not suffered ATM skimming until now, they had been "lulled into a sense of false security."

In New Zealand, a smart card-capable network is being introduced on the Paymark network - owned by the four main banks - which enables EFTPOS machines to recognize chips.