Aruba: ATM Fraud … Skimming Scam on Aruba

Coming soon to an Aruban bank near you, if it already hasn’t arrived  … ATM fraud. Is there any form of crime that does not exist on this small island? After all there is barely 100,000 people that live there.

ORANJESTAD — The commercial banks in Aruba became the victims of skimming.   The criminals have used this method in Curaçao to withdraw cash.   It is not clear yet how much money they have taken out.  

Earlier this week, the bankers of the Aruba Bankers Association (ABA) reported that money was taken out of their automated teller machines (AMT) with illegally copied bankcards.  

Amigoe; February 26, 2007: Fraud with ATM’s

ABA-chairman Menelio Loefstok in his office on the fourth floor of the Banco di Caribe-building.   Next week he will deliberate with other bankers on the fraud committed with ATM’s in Aruba.

ORANJESTAD — The commercial banks in Aruba became the victims of skimming.   The criminals have used this method in Curaçao to withdraw cash.   It is not clear yet how much money they have taken out.  

Earlier this week, the bankers of the Aruba Bankers Association (ABA) reported that money was taken out of their automated teller machines (AMT) with illegally copied bankcards.  

ABA-chairman Menelio Loefstok wants to talk with the bankers of Arubabank, Caribbean Mercantile Bank (CMB), RBTT and Banco di Caribe about the occurrences and how to solve the problem for the banks as well as for the customer in concern.   ABA is no umbrella organization that sets out the policy for the commercial banks.   “All the banks are responsible for their service, which means that they have to decide what information they will give on skimming, and how.   ABA cannot give details about the number of ‘adapted’ ATM’s or the number of duped account holders”, said Loefstok. He did say thought that all the four commercial banks became victims of fraud.   He also said that the data obtained through skimming were sent to Canada, where they were used to take out money.  

Amigoe disposes of information that the skimming took place in February at the ATM’s of RBTT and Arubabank in Pos Chiquito, Santa Cruz, and Seaport.   Loefstok, who is chairman of ABA and general director of Banco di Caribe, confirmed that his bank has also become a victim of skimming.   He is not sure whether this was also the case with CMB.   It is certain though that there are CMB-customers whose bank cards were copied while withdrawing money from ATM’s of one of the other three banks.   If CMB experienced skimming, is very remarkable, because late January, this bank has extra secured her 40 ATM’s with special software to especially counteract skimming.   At that time, a spokesperson of CMB indicated that they have not noticed any cases of skimming in Aruba and if this form of fraud is committed on this island, it will be published right away.   CMB was not available for comments yesterday afternoon.   When Arubabank was asked for reaction, her PR-employee Shanoulle Bikker said that she will do that on Monday.  

BLOCK

CMB approached the duped customers yesterday, telling them that fraud has been committed with their bankcards and their accounts have therefore been blocked.   These customers could pick up a new bankcard that same afternoon.   Banco di Caribe customers were very angry when they realized that their accounts were blocked and they didn’t know for what reason.  

“All ATM transactions are registered.   The bank can trace back the moment that skimming took place, and the customer accounts that have taken out money after that time are blocked as a precaution and new bankcards are created”, said Loefstok.   He admitted that their customers were not yet informed of skimming and that it’s natural that the customers, whose accounts were blocked, reacted angrily.      

A bank can detect skimming when the customer reports that money was erroneously withdrawn from his/her account, or if during the withdrawing of money, the ATM acts ‘strange’ and the customer informs the bank about it.   “After such reporting, the bank in concern will investigate what had happened.   If it turns out that money was taken out through skimming, that bank then can take action”, said Loefstok.   He said that it is very much likely that the skimming has taken place in February or even before that, and that the banks have just detected it this week.  

“It is therefore very important that account holders monitor their accounts and know what is being taken out.”   In addition, the customers have to be attentive to indications that point at photocopier, like a double console.   “With skimming, a fake console is stuck on top of the real one.   Before using the console of the ATM, the person that is withdrawing money should run his/her fingers along the console and see if he/she can feel a thickening or double layer”, says Loefstok.   He emphasized that ABA has warned against skimming on more than one occasion in the past months.   They have pictured how a false ATM would look like.   “We are doing everything possible to counteract skimming.”   His advice is to use online banking as much as possible.      

SKIMMING

With skimming, the data in the magnetic tape stripe of a bankcard is illegally copied.   This happens by placing special equipment in the slot of the ATM.   An unsuspecting person withdrawing money cannot see this.   The PIN code of the bankcard in question is being ‘copied’ with the use of a small camera, by forging the console, or with other devious ways.   It’s then child’s play for the criminals to withdraw money from the accounts by using the information they got.