News

UAE banks leery of upping ATM withdrawal limits in wake of fraud

June 24, 2003

ABU DHABI, United Arab Emirates -- UAE banks are awaiting directives as well as assurance from the Central Bank before restoring ATM withdrawal limits, fearing they could lose more money in an ATM skimming scam that was discovered May 30.

(See related story UAE banks cut ATM withdrawal limits while skimming case is investigated)

According to the Gulf News, some banks gradually increased the withdrawal limits on their own; others are unwilling to take the risk unless they feel secure from the fraud.

The Gulf News cited a senior banker as saying, "We have not received formal instructions from the Central Bank yet to restore withdrawal limits. We are waiting to see the memo and then take a decision because it is risky to restore the withdrawal limits until the problem is solved."

In a statement to the media, the Central Bank on June 23 said it had directed banks to return customers' funds lost in the scam and restore withdrawal limits. (See related story Arab banks compensating ATM scam victims)

One bank, Dhabi Islamic Bank (Adib), reduced its daily account withdrawal limit to 1,000 dirhams (about $272 U.S.) from 5,000 ($1,363 U.S.) dirhams per day after news of the scam broke. Starting on June 24, Adib decided to increase its withdrawal limit to 4,000 dirhams ($1,090) per day from the ATM and 4,000 dirhams per day from the point-of-sale terminal.

"We did not receive the circular from the Central Bank but took a decision to enhance the withdrawal limit based on our customers' needs. We will gradually increase the withdrawal limit," a senior Adib banking official told the Gulf Times.

Adib has taken internal measures such as changing PIN codes, replacing ATM cards and is constantly monitoring every transaction.

A senior banker from the National Bank of Abu Dhabi (NBAD) also confirmed that the bank has yet to receive the official circular from the Central Bank about restoring withdrawal limits.

"But we decided to increase it gradually and are thinking seriously of restoring it to normal levels soon."

Meanwhile, some banks hit by the scam have returned customers' funds that were lost in the scam, and others are in the process of doing so, according to the Gulf Times report.