Advice to bank customers regarding skimming crime

Sydney, 20 January, 2010: The Australian Bankers’ Association (ABA) is assuring customers they are not liable for unauthorised transactions on their accounts when they become victims of skimming crimes.

NSW Police have advised banks and other financial institutions that they have formed Strike Force Wigg to investigate the use of skimming devices used to defraud customer accounts in NSW.
 
Skimming is the unauthorised copying of information stored on the magnetic strip of debit and credit cards. This information can be used by criminals to create a counterfeit card, which is then used for fraudulent transactions in retail outlets, on the Internet, or at ATMs.

If a bank or the police confirm skimming has occurred, then customers will not be responsible for any related fraudulent transactions on their accounts.
 
David Bell, Chief Executive of the ABA, said: “When skimming is suspected, banks will conduct an investigation and funds are restored to customers – the innocent victims of this crime. In other words, the bank wears the loss.”

“Banks are assisting NSW Police with information on these crimes and are working together to protect customers. We are pleased that NSW Police have made some arrests and we are hoping they secure convictions for these crimes.”

“Banks take security seriously and have computer systems in place to constantly monitor transactions. If a transaction is identified as suspicious, it will be investigated to ensure there is no breach of security.”

“If a bank suspects fraudulent activity, customers cards’ may be blocked to ensure fraudulent transactions cannot continue. In addition, a bank staff member may contact the customer to discuss any unusual activity, such as the card being used overseas when it is usually used domestically.”
 
Mr Bell added: “We urge people who notice unauthorised transactions on their statement to report this to their bank as soon as possible. If you have any concerns, you can check your account online, over the phone or by dropping into a branch.”

“It’s also a good idea to ensure that customers keep their bank updated on any change in their contact details such as mobile, home or work phone numbers and if travelling overseas, they should let their bank know.”
In addition to the protection provided by bank security measures, bank customers can take simple precautions to protect themselves against card skimming:

For further information:

Heather Wellard
Director, Public Relations
Phone: 02 8298 0411
Mobile: 0409 830 439

ENDS