After ATM Hacking Scandal State Bank Of Pakistan Orders Banks to Use New Technologies
Many accounts were hacked this year by Hackers and around Rs 10 million rupees were stolen through different illegal transactions. State Bank Of Pakistan (SBP) issued a set of regulations to secure payments and transactions through cards and internet banking. State Bank Of Pakistan (SBP)told all banks to develop a system through which risk assessment is done and actions and controls are monitored.
ATM users reported fraudulent activity, complaining of unauthorized withdrawals from their accounts and blockage of plastic cards after reports surfaced of a wide-scale hacking incident.
The Federal Investigation Agency’s (FIA) cyber crime wing has kicked off investigations into these bank account hacking incidents following complaints by Habib Bank Limited (HBL), which acknowledged that around 600 customers across the country have lost close to Rs10 millionin the cyber attack.
An ATM installed at Khayaban-e-Ittehad (Karachi) has been cited as the target of the attack,” an FIA official said while talking to The Express Tribune.
SBP released a statement in which it clarified that cards with magnetic strip are specifically prone to hacking. Data is stored in the magnetic strip which makes skimming easier. Statement read that debit cards following Europay MasterCard Visa (EMV) standards are considered more secure than conventional debit cards. The data is stored on integrated circuits in EMV cards as well as magnetic strip which makes skimming harder.
The EMV cards feature a chip and two-factor authentication which makes transactions through ATM machines secure. EMV standards have turned out to be the most effective countermeasures followed around the world to combat skimming and unauthorized transactions.
SBP further referred to its PSD 05 (2016) regulations according to which banks will be required to develop an EMV supported infrastructure and issue secure cards by 30th June 2018.