Fraudsters are siphoning off millions of taka through Visa and Mastercard fraud, using clever methods to steal customer information and create counterfeit cards to withdraw money. As a result, users are at risk of losing their funds. Several members of the fraud ring have been arrested by law enforcement agencies.
In response to this, the government has decided to reduce the use of international payment networks and strengthen the National Payment Switch Bangladesh (NPSB), a local payment gateway to prevent fraud. This initiative will not only curb fraud but also save the country up to 20 crore taka annually that is currently paid in transaction charges to card companies.
The technique of fraud syndicate
An analysis of CCTV footage from ATM booths and transaction records has uncovered that criminals have placed devices and cameras at bank ATMs to capture customers' card details during deposits and withdrawals. This technique has allowed the syndicate to steal millions of taka from customers' accounts. Authorities are concerned that if the fraud continues, the stolen amount could reach hundreds of millions of taka in the future.
Visa and Mastercard are used worldwide for electronic payments, shopping, ATM withdrawals, mobile recharges, and even adding money to MFS accounts. Fraudsters exploit these opportunities by hacking users’ accounts and stealing money.
Numerous incidents have been reported at different police stations in Dhaka. The Cyber Intelligence team of the CID has been investigating these cases and has apprehended several individuals involved in the fraudulent group.
According to relevant sources, if the fraudsters send these cards abroad, no matter what measures are taken within the country, they can easily withdraw foreign currency from ATMs abroad, which is nearly impossible to stop within the country. Therefore, Visa and MasterCard users are never entirely secure.
Experts advise vigilance against fraud
Experts are concerned about the issue but advise users to be more vigilant. Abul Kashem Md Shirin, Managing Director of Dutch-Bangla Bank, stated that customers must be extra cautious to prevent fraud on Visa and MasterCard. They should monitor SMS alerts sent to their phones and immediately block the card by notifying the call center if they receive an SMS regarding any transaction. However, if the card is taken abroad, the first transaction cannot be stopped. But if the withdrawal is detected later, action can be taken, although it might not prevent the initial loss.
The Bangladesh Bank source mentioned that the CCTV footage from ATM booths should be regularly monitored from the bank's headquarters. However, banks fail to follow this procedure properly. As a result, the fraud syndicate manages to steal customers' money.
Experts call for stronger NPSB to retain 20 crore taka annually
Industry insiders say that banks must obtain certification from Visa or MasterCard to use their services, and they pay for these certifications. They also have to renew them every year. Since Bangladesh's own payment system, the National Payment Switch Bangladesh (NPSB), is not yet strong, banks rely on Visa and MasterCard for traditional payment processing. As a result, approximately 20 crore taka is sent abroad every year in certification and transaction fees. Strengthening NPSB could keep this money within the country.
Faiz Ahmad Taiyeb, Special Assistant to the Chief Advisor of the Ministry of Posts, Telecommunications, and Information Technology, said, "There can be many payment systems for financial transactions, but the universal payment gateway aggregator must be one. It must be the National Payment Switch Bangladesh (NPSB). The NPSB service provided by Bangladesh Bank now needs to be strengthened."
(Translated by Afia Nanjiba Ibnat)
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