The device can read and record the PIN codes of ATM cards from a distance, said Talat Zaki Hafez, secretary-general of the Media and Banking Awareness Committee of Saudi Banks.
“The modus operandi is almost same. After getting access to the PIN code, the thieves snatch the cards from the customers coming out of ATM cubicles and run away. They then use the card to withdraw money from the account,” he said.
Hafez told Al-Eqtisadiah business daily that the Saudi Arabian Monetary Agency (SAMA) is vigilant against such types of fraud.
“SAMA has issued a number of regulations with regard to the issuance of ATM cards. It also launched an awareness campaign,” he said.
“The first and second phases of the campaign, called ‘Relaxed,’ are over and now the third phase is ongoing.”
He added that the campaign aimed to raise awareness about the safe use of ATM cards.
Hafez noted that there were calls to cancel the PIN code system and instead introduce optical technology for ATM withdrawals.
“It is possible to cheat a fingerprinting system. Hence, optical scanning is a safer method that could be followed,” he added.
Hafez commended SAMA’s efforts to combat ATM fraud.
“Banks should also play a vital role to protect their customers against fraud and cheating. These fraudsters may come out with new tricks and methods in time even if we tried our best to protect our customers,” he said.
According to Hafez, there are more than 10,000 ATMs in the Kingdom.
“All the benefits of advanced technology should be applied to this network also," he said.
He said in case the optical scan system was introduced nationwide, there is a possibility that fraudsters might render the system ineffective by inventing new techniques.
“In most fraud and theft cases, the culprit usually exploits the trust placed in him. There are several examples where elderly citizens have become victims of their foreign drivers or housemaids,” Hafez said, urging elderly people to rely on their close relatives if they need help using ATMs.
Hafez drew attention to the amount of money local banks were allocating to upgrade their internal systems to improve the safety of their customers’ accounts.
He urged customers to update their banking details only at their local branches to avoid becoming victims of fraud.
Hafez also noted the positive impact of awareness programs carried out by various banks on customers' desire to avoid becoming victims of fraud.
