News

Hong Kong banks adopting ATM security measures

February 16, 2004

HONG KONG - Fewer than half the banks polled in a Consumer Council survey say they have installed closed-circuit TV cameras to monitor their ATMs in an attempt to prevent card fraud.

According to a report in The Standard, the council launched the survey following reports that gangs had installed pin-hole cameras in ATMs to obtain customers' PINs and passwords.

Questionnaires were sent to 19 banks and 16 replied, according to a report issued on Feb. 16.

Seven banks said they have installed closed-circuit television cameras at ATMs while another six said plans are being drawn up. Two refused to answer.

Three banks said they have installed devices to prevent fraud gangs from reading information on cards and six said they are planning to do so, according to the Standard.

Only one bank answered yes when asked if it would install devices that can detect spy cameras, though two other banks said they planned to do so. Six banks did not answer the question.

However, 14 of the 16 banks said they have already posted warning notices on all ATMs; 13 said they have also listed a hotline number that customers can call if they see anything suspicious.

Twelve banks said they plan to increase patrols at ATMs or inform customers about unusual transactions.

Public concern about ATM security intensified after several people reported thefts from their accounts. Between Oct. 11, 2002, and Nov. 19, 2003, the Hong Kong Monetary Authority received 50 complaints.

One is still under investigation, while the others, totalling HK$2.1 million (U.S. $270,250) in claims, have been settled by the banks. According to the authority, the highest payout was HK$377,000 ($48,516) and the lowest HK$1,900 (U.S. $244).

The authority sent a circular to all banks last October, suggesting precautionary measures, including upgrading security measures at ATMs, installing closed-circuit TVs, more frequent patrols and customer education on the importance of protecting cards and passwords.

A Hang Seng Bank spokeswoman said the bank has installed security devices including closed-circuit television at ATMs.

"Where it was technically feasible, we also installed a keypad cover,' she said.