by stevecz » Mon Apr 23, 2012 12:50 pm
Copy of email sent to ANZ Royal.
I am the victim of white card fraud from my debit card account no.xxxxx with the ANZ Royal Bank, On the 10/1/2012, 5 unauthorized ATM withdrawals were activated in Bulgaria to the total amount of US$985, I did NOT authorize these withdrawals and was not in Bulgaria at the time and do not know the persons whose names are on these cards, obviously duplicate cards have been manufactured with these persons names on them, the incident was reported and investigated by ANZ and although the bank has offered to reimburse me 50% I feel that I should be reimbursed the full amount of US$985, I do not know how the perpetrators obtained my card and pin number but I can assure you that I take all precautions when carrying out a transaction. Your bank needs the debit card security codes to be upgraded to prevent further incidents of this crime, if these added security measures had been in force at this time this crime could not have occurred and could not happen in the future and my account could not have been accessed, for this reason I believe that I should receive a full refund of US$985. See part of full report below. I had no option but to accept the 50% you have been warned
Hidden security code
The magnetic stripe on the back of a credit card is similar to magnetic tape used for cassette recordings, or to back up computer data. Every ATM card stripe is loaded with a three-digit security code, known as either CVV (Card Verification Value) or CVC (Card Verification Code). The characters are different from the CVV2 value that's actually printed on the card, and often requested of consumers when shopping online.
These CVV or CVC codes are invisible to consumers, so they can't be tricked into divulging the information. The secret data is supposed to prove the plastic inserted into an ATM machine is really the plastic issued to the consumer by the bank. But many banks don't check the codes. They just skip the process, assuming that if the PIN is accurate, the card must be authentic. "Banks are not checking the magnetic stripe data as they should ... It's not clear why," Litan said. "It's not an expensive process. It doesn't add much to the cost of the transaction."
Jevans said most banks just didn't think it was necessary until recently. "Tons of people don't set up their ATMs to check (the security codes)," he said. "They never thought to turn it on. It was never a problem."
Banks targeted by such fraud can spend months trying to figure out what's happening, Litan said. But once they do, adding the security code check stops the thieves cold, she said. "They are often quickly able to stop the crime with a relatively simple solution," she said. Would-be thieves then just move to the next "cashable" bank.
This would only need to be activated on cards with overseas access.
Copy of email sent to ANZ Royal.
I am the victim of white card fraud from my debit card account no.xxxxx with the ANZ Royal Bank, On the 10/1/2012, 5 unauthorized ATM withdrawals were activated in Bulgaria to the total amount of US$985, I did NOT authorize these withdrawals and was not in Bulgaria at the time and do not know the persons whose names are on these cards, obviously duplicate cards have been manufactured with these persons names on them, the incident was reported and investigated by ANZ and although the bank has offered to reimburse me 50% I feel that I should be reimbursed the full amount of US$985, I do not know how the perpetrators obtained my card and pin number but I can assure you that I take all precautions when carrying out a transaction. Your bank needs the debit card security codes to be upgraded to prevent further incidents of this crime, if these added security measures had been in force at this time this crime could not have occurred and could not happen in the future and my account could not have been accessed, for this reason I believe that I should receive a full refund of US$985. See part of full report below. I had no option but to accept the 50% you have been warned
Hidden security code
The magnetic stripe on the back of a credit card is similar to magnetic tape used for cassette recordings, or to back up computer data. Every ATM card stripe is loaded with a three-digit security code, known as either CVV (Card Verification Value) or CVC (Card Verification Code). The characters are different from the CVV2 value that's actually printed on the card, and often requested of consumers when shopping online.
These CVV or CVC codes are invisible to consumers, so they can't be tricked into divulging the information. The secret data is supposed to prove the plastic inserted into an ATM machine is really the plastic issued to the consumer by the bank. But many banks don't check the codes. They just skip the process, assuming that if the PIN is accurate, the card must be authentic. "Banks are not checking the magnetic stripe data as they should ... It's not clear why," Litan said. "It's not an expensive process. It doesn't add much to the cost of the transaction."
Jevans said most banks just didn't think it was necessary until recently. "Tons of people don't set up their ATMs to check (the security codes)," he said. "They never thought to turn it on. It was never a problem."
Banks targeted by such fraud can spend months trying to figure out what's happening, Litan said. But once they do, adding the security code check stops the thieves cold, she said. "They are often quickly able to stop the crime with a relatively simple solution," she said. Would-be thieves then just move to the next "cashable" bank.
This would only need to be activated on cards with overseas access.