Microchips for ATM, debit cards to tackle fraud: Bank of Thailand

[webfact]

Microchips for ATM, debit cards to tackle fraud
By Digital Content



BANGKOK, April 11 – Commercial banks in Thailand will use microchips instead of a magnetic system on ATM and debit cards to prevent fraud, starting next year, according to the Bank of Thailand (BoT).

BoT spokesperson Rung Mallikamas said the central bank and commercial banks have been trying to find measures to prevent skimming – a fraud method in which a device is affixed to the mouth of an ATM and secretly swipe credit or debit card information when bank customers slip their cards into the machines to withdraw money.

She said commercial banks have installed anti-skimming devices at cash machines, warned people on the risks of ATM fraud, and told customers to be more cautious in using their cards.

“It’s right that commercial banks hold responsibility in case of ATM fraud, but they will have to change to microchip system for cards to prevent skimming,” she said. (MCOT online news)


-- TNA 2014-04-11

[Morakot]

Who priecisly will these "commercial banks" be?

What priecisly does "next year" mean?

Edited April 11, 2014 by Morakot

[PatOngo]

"Microchips for ATM, debit cards to tackle fraud"

Can they be applied to politicians???

[TallGuyJohninBKK]

There are a lot of non-chip reading ATMs out there....other than Bangkok bank's own proprietary system for their own chipped cards.

Wonder if there's a conversion package available in the marketplace for moving to chip reading systems. Or, are they talking about wholesale replacement of ATM machines.

If the latter, or even the former, just how long is it likely to take to complete the changeover for tens of thousands of machines?

Meanwhile, don't be surprised if there isn't either a new fee or increased ATM card annual or issuance fees to help customers pay the banks for these kinds of changes.

[MMarlow]

Who priecisly will these "commercial banks" be?

What priecisly does "next year" mean?

As it is information distributed by BoT the chances are it will be all commercial banks, don't you think?

Precisely, 2015

Edited April 11, 2014 by MMarlow

[craigt3365]

There are a lot of non-chip reading ATMs out there....other than Bangkok bank's own proprietary system for their own chipped cards.

Wonder if there's a conversion package available in the marketplace for moving to chip reading systems. Or, are they talking about wholesale replacement of ATM machines.

If the latter, or even the former, just how long is it likely to take to complete the changeover for tens of thousands of machines?

Meanwhile, don't be surprised if there isn't either a new fee or increased ATM card annual or issuance fees to help customers pay the banks for these kinds of changes.

My Bangkok Bank chipped card was more than a normal card. Don't think there is an annual fee. But it only works in their machines. We were down south recently, took us a few days to find an ATM that would work.

[Basil B]

There are a lot of non-chip reading ATMs out there....other than Bangkok bank's own proprietary system for their own chipped cards.

Wonder if there's a conversion package available in the marketplace for moving to chip reading systems. Or, are they talking about wholesale replacement of ATM machines.

If the latter, or even the former, just how long is it likely to take to complete the changeover for tens of thousands of machines?

Meanwhile, don't be surprised if there isn't either a new fee or increased ATM card annual or issuance fees to help customers pay the banks for these kinds of changes.

Depends on who make the ATM's, but unless they only supply to Thailand or countries that only use the magnetic strips then they will also manufacture machines that can read chips, so my guess is that they configure the same machine for different markets so just a change of the reader module and upgrade the software.

The big cost will be to "merchandisers" (businesses that accept card payments) as they will require new PDQ machines, and the issue of new cards to all users.

Edited April 11, 2014 by Basil B

[WoopyDoo]

Well done Thailand..... finally after 20 years, your banking system is catching up with the UK.

Next they might even start using things like PayPal..... Which is untrusted by about 95% of Thais.

[TallGuyJohninBKK]

Who priecisly will these "commercial banks" be?

What priecisly does "next year" mean?

As it is information distributed by BoT the chances are it will be all commercial banks, don't you think?

Precisely, 2015

The OP says they're planning the changeover to the new cards STARTING next year.

It doesn't say how long they expect it will take to complete the changeover.

Just consider how well Thailand fares with ever starting anything or finishing anything on the original timetables.

[TallGuyJohninBKK]

My Bangkok Bank chipped card was more than a normal card. Don't think there is an annual fee. But it only works in their machines. We were down south recently, took us a few days to find an ATM that would work.

AFAIK, pretty much all the Thai banks have separate fees for both a) the issuance of new cards and b] an annual fee for as long as you keep your card.

Here's BKK Bank's current fee structure for their ATM cards:

Be1st Card (non-chipped)

Entrance Fee 100Bt

Annual Fee 200Bt

Be1st Smart Card (chipped)

Entrance Fee 100Bt

Annual Fee 200Bt until 31 December 2014 (usually 300Bt)

Note that the chipped smart card has a nominal annual fee of 300 baht vs 200 baht for the regular card.

http://www.bangkokbank.com/BangkokBank/WebServices/HelpCenter/Pages/FeeTable.aspx

But that was an initiative BKKB did on their own. None of the other Thai banks followed their course at the time.

Now that it apparently is going to become a BOT/Thailand wide requirement, I'd be very surprised if the Thai banking industry at large doesn't look for some way to recoup the costs from customers of their own insecure systems.

BTW, this changeover had already been previously announced, if memory serves. So presumably, they're just throwing this out again now because of the latest episode of ATM skimming in BKK and the publicity associated with that.

Edited April 11, 2014 by TallGuyJohninBKK

[Pib]

I read some news report a few weeks ago K-Bank was beginning a transition to chipped debit cards...sounded like they were converting as we speak versus just talking about a future change. Once another major Thai bank completes the switch (versus only Bangkok Bank having already completed the switch last year...the first Thai bank to completely switch) I'll change my current Be1st magnetic strip card to the Be1st Chipped card. But for right now since I still run into Bangkok Bank ATMs that are out of cash/offline "just when I really need money" and I don't want to go hunting for the next closest Bangkok Bank ATM which can be a good distance unless living in a highly populated area like central Bangkok, etc. With the regular Bt1st debit card I can slide over to another bank's ATM to get money which is usually just few steps away based on how ATMs seem to be bunched up in most places.

Yea, I know chipped cards are more secure than magnetic strip cards but I also want a card I can use in "any" ATM...and I'll continue to treat/protect my card & PIN like cash/precious jewels and not keep too much in the account with ATM access. Right now I use two Bangkok Bank accounts...one with ATM and one without ATM...the account without ATM is where I maintain my serious money....and then I just do quick, easy & free ibanking transfers as necessary from the account without ATM to the account with ATM "to keep just enough money in the ATM account for my short/near term cash needs."

[Estrada]

Who priecisly will these "commercial banks" be?

What priecisly does "next year" mean?

Interesting spelling of the word precisely. To be precise the commercial banks are all the banks listed in the ATM pool, a list you can get from your bank and/or the Bank of Thailand website. Next year means next year because the banks are being forced to pay compensation to customers who lose money due to ATM skimming and now at last they have to do something about it.

[thailandbeachisland]

30 years that microchips are used in EU...

The rest of the world is ridiculous !

[craigt3365]

30 years that microchips are used in EU...

The rest of the world is ridiculous !

I'm still blown away I need to take my physical passbook into the bank along with my passport. So they can copy the passport and have me sign it...for the 100th time.

[soalbundy]

My German bank still issues me with a magnetic stripe card because the chip card can't be used at an ATM outside of Europe,so what happens to me now ? anybody out there know?

[Amaxster]

So chip & pin is on the way then?

... seriously, about time!

[3NUMBAS]

it could takes years at the currant speed of operations .its been mooted for ages

[Muhendis]

"Microchips for ATM, debit cards to tackle fraud"

Can they be applied to politicians???

Now you're talking............

[geriatrickid]

My German bank still issues me with a magnetic stripe card because the chip card can't be used at an ATM outside of Europe,so what happens to me now ? anybody out there know?

?????

Canada and several latin american countries (e.g. Chile) are chip based. So is Japan and Singapore.

[koo]

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There are a lot of non-chip reading ATMs out there....other than Bangkok bank's own proprietary system for their own chipped cards.

Wonder if there's a conversion package available in the marketplace for moving to chip reading systems. Or, are they talking about wholesale replacement of ATM machines.

If the latter, or even the former, just how long is it likely to take to complete the changeover for tens of thousands of machines?

Meanwhile, don't be surprised if there isn't either a new fee or increased ATM card annual or issuance fees to help customers pay the banks for these kinds of changes.

Bangkok Bank's chip system is not proprietary, it is based on the global EMV standard. Once other Thai banks roll out their chip+pin cards and ATMs, they will be compatible also, unless they make a (very stupid) decision not to adopt EMV.

My German bank still issues me with a magnetic stripe card because the chip card can't be used at an ATM outside of Europe,so what happens to me now ? anybody out there know?

To my knowledge, all chip cards still have magstripe as well. Thus, there is a fallback if you travel to a country that has not adopted EMV yet.

If you really want to add security to your chip card, you could destroy the magstripe, so it can be used only in chip terminals - skimming the card information becomes impossible. The fallback for that card would be inputting your card information manually to the POS (when making a purchase, either online or face-to-face), but the card system is flagged for manual entry and extra levels of security are applied for this transaction.

[Basil B]

So chip & pin is on the way then?

... seriously, about time!

...seriously, well yes unless this news was intended for 11 days ago.

All my UK cards still have magnetic strips on the back so they can be used in "still in the dark age" countries.

One possible way to eradicate fraud is to remove the magnetic strip from cards altogether.

Edited April 11, 2014 by Basil B

[Pib]

My German bank still issues me with a magnetic stripe card because the chip card can't be used at an ATM outside of Europe,so what happens to me now ? anybody out there know?

To my knowledge, all chip cards still have magstripe as well. Thus, there is a fallback if you travel to a country that has not adopted EMV yet.

If you really want to add security to your chip card, you could destroy the magstripe, so it can be used only in chip terminals - skimming the card information becomes impossible. The fallback for that card would be inputting your card information manually to the POS (when making a purchase, either online or face-to-face), but the card system is flagged for manual entry and extra levels of security are applied for this transaction.

However, the Bangkok Bank Be1st Smart (chipped) card can only be used in ATMs that have chip reading capability; apparently for withdrawing funds from an ATM, the ATM "must" be chip-capable as the Be1st Smart card is coded only to allow ATM withdrawal from chipped capable ATMs. That's why in Thailand Be1st Smart cards will "only" work in Bangkok Bank ATMs since other Thai banks have not transitioned to chip enable ATMs yet. So, if you go to a country which does not use chip-enabled ATMs you won't be able to use the Be1st Smart card to get cash. But you can still use the card to purchase things even if the Point of Sale transaction machine is not chip enabled because the Be1st Smart card does allow purchases from info on it's magnetic strip. I guess it easier for Bangkok Bank to refuse/recover a fraudulent purchase payment to a merchant compared to recovering a fraudulent ATM withdrawal since the crook is long gone with the money.

Below is a cut and paste from the Bangkok Bank website talking about where their Be1st Smart card can be used for cash withdrawal.

• Withdraw cash safely: The card can be used at more than 8,500 Bangkok Bank ATMs nationwide. VISA EMV-enabled ATMs are also available in some countries abroad, so your money can be kept safe when you travel.

[Basil B]

With all Thailand's ATM's converted to read chip cards it will put a stop to Thailand being used by criminals who obtain pin and card number in other countries and then clone the magnetic strip with the card number and use it in a country that does not use chip and pin.

[Pib]

With all Thailand's ATM's converted to read chip cards it will put a stop to Thailand being used by criminals who obtain pin and card number in other countries and then clone the magnetic strip with the card number and use it in a country that does not use chip and pin.

It probably won't unless Thai bank setup their ATMs to "only accept" chip-enabled cards for cash withdrawals...a cash withdrawal authorization that is normally set/coded on the card "by the card-issuing bank" to only use the chip for ATM cash withdrawals, or to allow chip or magnetic strip ATM cash withdrawal. Otherwise, debit/credit cards from the U.S (and other countries) which are still predominately magnetic strip based will not work in Thai ATMs...and Thai ATMs will want those cards to work due to the fees generated.

But yes, it would greatly help to reduce Thai bank issued ATM cards fraudulent transaction impacting the pocket book of the Thai bank since they would probably follow Bangkok Bank's lead and code their cards only to work in chip enable ATMs.

The reason crooks come to Thailand to do the fraudulent ATM withdrawals is because they know the chances of being caught by Thai law enforcement is low...and if caught some tea money can will lighten up the charges and the charges might even disappear. Plus, it's super easy to get out on low bail and then leave the country.

Nope, it's not because most Thai ATM are not chip capable; it because of weak Thai law enforcement.

Edited April 11, 2014 by Pib

[robblok]

My German bank still issues me with a magnetic stripe card because the chip card can't be used at an ATM outside of Europe,so what happens to me now ? anybody out there know?

Not sure but you could always open a Thai bank account and send money over. I do both use my Dutch card and send money over to the Thai bank just in case the Dutch card fails.

[soalbundy]

My German bank still issues me with a magnetic stripe card because the chip card can't be used at an ATM outside of Europe,so what happens to me now ? anybody out there know?

?????

Canada and several latin american countries (e.g. Chile) are chip based. So is Japan and Singapore.

Yes i realize that,it has nothing to do with the ATM being able to read the chip.It has to do with the system ie. provider (American i believe). The Deutsche Bank and the Deutsche Post have changed to this system.Many German holiday makers flying to Asia or indeed America found that they couldn't withdraw money from an ATM and had to use their credit cards ,this i think was the whole rotten idea to force you to use a credit card to get cash,higher earnings! My bank hasn't changed their system and according to them don't intend to. My card does in fact have a chip as well i have just noticed (blind as a bat) it is issued by maestro and functions world wide i think the two banks i mentioned changed to Visa which caused all the problems but i'm not sure now.

[Postmaster]

I have been with Bangkok Bank for 7 years now and as soon as I heard from a friend of mine of mine that his magnetic strip card had been skimmed at Bangkok bank on Second road in Pattaya opposite he VC Lounge I immediately went to the main Branch, my Branch, near the Grand Sole hotel and changed my card to a microchip smart BE FIRST Card and I am so glad I did that. I think there was a small fee but it was well worth it and I have never had any problems in the 18 months I have had the new smart card. I recommend anyone with the simple magnetic strip cards to get them changed as quickly as possible.

My friend lost 200,000 baht in 2 days with his old card-type and to this day I believe he has not received any compensation

back from the bank. Just do it !

[Guitar God]

I have a new chipped card from Bangkok Bank. The extra security is nice but it really sucks that the only place they work is at Bangkok Bank ATM's. I used to be able to withdraw money from my Thai account all over the world, now I have to plan ahead to make sure I can find one of their ATM's when I'm in Thailand if I need some cash.

[jacko45k]

Well done Thailand..... finally after 20 years, your banking system is catching up with the UK.

Next they might even start using things like PayPal..... Which is untrusted by about 95% of Thais.

To be honest, I thought banking here to be superior than what is offered to me in the UK.

Doesn't the RBS system crash a few times a year?

[victor70]

Well done Thailand..... finally after 20 years, your banking system is catching up with the UK.

Next they might even start using things like PayPal..... Which is untrusted by about 95% of Thais.

an at least with EUROP