UAE banks cut ATM withdrawal limits while skimming case is investigated

No formal notice was issued to the public, but customers discovered on June 1 that they could withdraw a maximum 2,000 dirhams (about $550 U.S.) a day from many ATMs, down from a usual limit of 5,000 dirhams ($1,370) per day.

According to the Arab Times, some banks dropped their limits to only 1,000 dirhams ($275).

 

The Timescited a senior banker who asked not to be named. "It is a reaction to some fraudulent activity that has taken place through ATMs in the country and therefore banks are reducing withdrawal limits to minimize the risk," the banker said.

An investigation of the suspected scam, which is believed to involve skimming devices and cameras used to photograph PINs, is underway, the banker told the Times.

While the exact amount that has been illegally withdrawn at ATMs is not known, senior bankers believe it could total more than 50 million dirhams ($13.7 million).

Both local and international banks in the UAE have been affected by the scam, which was discovered on May 30. "Banks with large networks have been affected to a larger extent," a Citibank official said.

 

Bankers believe this is the first time that skimming at ATMs has taken place in the UAE, according to the Times report.