Eight tips to avoid cross-border, ATM fraud while traveling
Eight tips to avoid cross-border, ATM fraud while traveling
With the high amount of travel foreseen in the coming months, higher exposure to fraud syndicates are also very likely. FICO, a consultant on card fraud, has outlined eight practical tips to prevent cross-border and ATM fraud from ever happening to users.
FICO has identified a rising trend in cross-border fraud and ATM fraud – specifically in South East Asia, card skimming is a popular trend amongst fraudsters in developing nations such as Indonesia and Thailand. From its experience working with a majority of the top banks in Singapore and APAC, FICO estimates that total losses due to card fraud in APEJ are near USD360 million a year and rising.
Many ATM machines in the region have serious security issues, as they still rely on magnetic strips that are easily skimmed (i.e. stealing card information through the magnetic strip) – especially in developing countries where chip-based technology has not been widely adopted. There have been many cases of Singaporeans having their card information stolen when using their cards overseas, after which many high-value fraudulent transactions have been made to their cards. The evolving trend for such fraudsters is to conduct cross-border fraud, where card information stolen in a particular country is used to make fraudulent transactions in another country.
As fraudsters are constantly evolving to try and beat fraud detection and prevention solutions implemented by banks, here are some tips that for us travelers to keep in mind to help include an additional layer of protection against fraud when we travel:
1. Regularly update your contact information with your bank and provide multiple channels of communication (e.g. mobile number, email address), to ensure that the banks are able to contact you when they suspect a fraudulent transaction is being conducted.
2. Always let your banks know your travel dates and destination. You don’t want to get declined when paying for a tailored silk shirt in Shanghai.
3. Sign up for banking alerts where you will receive emails or SMS messages, to receive updates when there are transactions made above a certain amount or when there is irregular card activity.
4. Stay away from ATMs that appear dirty, are in disrepair, or just don’t seem ‘right’. These ATMs may be fake machines set up to capture card information. If anything on the front of the machine appears damaged, a fraudster may have attached a card skimming device.
FICO has identified a rising trend in cross-border fraud and ATM fraud – specifically in South East Asia, card skimming is a popular trend amongst fraudsters in developing nations such as Indonesia and Thailand. From its experience working with a majority of the top banks in Singapore and APAC, FICO estimates that total losses due to card fraud in APEJ are near USD360 million a year and rising.
Many ATM machines in the region have serious security issues, as they still rely on magnetic strips that are easily skimmed (i.e. stealing card information through the magnetic strip) – especially in developing countries where chip-based technology has not been widely adopted. There have been many cases of Singaporeans having their card information stolen when using their cards overseas, after which many high-value fraudulent transactions have been made to their cards. The evolving trend for such fraudsters is to conduct cross-border fraud, where card information stolen in a particular country is used to make fraudulent transactions in another country.
As fraudsters are constantly evolving to try and beat fraud detection and prevention solutions implemented by banks, here are some tips that for us travelers to keep in mind to help include an additional layer of protection against fraud when we travel:
1. Regularly update your contact information with your bank and provide multiple channels of communication (e.g. mobile number, email address), to ensure that the banks are able to contact you when they suspect a fraudulent transaction is being conducted.
2. Always let your banks know your travel dates and destination. You don’t want to get declined when paying for a tailored silk shirt in Shanghai.
3. Sign up for banking alerts where you will receive emails or SMS messages, to receive updates when there are transactions made above a certain amount or when there is irregular card activity.
4. Stay away from ATMs that appear dirty, are in disrepair, or just don’t seem ‘right’. These ATMs may be fake machines set up to capture card information. If anything on the front of the machine appears damaged, a fraudster may have attached a card skimming device.
