Closer ties to fight skimming, bank fraud

Closer cooperation among Guam Banking Association members and other institutions could help them fight off skimmers and other bank fraud.

GBA is a group of banking and financial institutions in the region. Bank of Guam, Bank of Hawaii, Bank Pacific, and First Hawaiian Bank are some of its members.

FHB was a recent victim of skimmers; some of the bank’s clients’ accounts were compromised. The Federal Bureau of Investigation has a continuing investigation, resulting in arrests and prosecutions.

In 2010, GBA also alerted its members and the public of a fraudulent phone call and text scam. The scam begins with a text message that had a phone number and asks the client to call their local bank. A recorded message will answer the client once they call the phone number and they will be informed that their account is going to be deactivated. The recorded message would then ask the caller for their 16-digit credit card number.

GBA, back then, warned their clients to disregard the message—banking institutions don’t solicit for personal information of their account holders via email, phone, or text message.

BoG senior vice president and chief communications officer Jackie A. Marati said their institution had also been a victim of skimmers, and they have tightened their security measures to prevent similar incidents from happening.

“[BoG] has a mechanism in place to detect skimming and other types of fraud, as well as procedures for handling card compromises that protect the interests of our customers,” said Marati in an email to he Saipan Tribune.

“We have tested policies and procedures to handle these matters,” added Marati, when asked if they also have precautionary measures to prevent skimming incidents and other forms of bank fraud.

She added that GBA members also work closely to combat any form of bank fraud. “ We work closely with our counterparts at other local financial institutions to combat fraud and ensure that our mutual customers’ interests are protected.”

Although it has yet to experience bank fraud, BankPacific has installed tighter security features for its automated teller machines.

“We have never been a victim of skimming devices. We check all of our ATMs throughout our system daily to ensure no devices have been inserted. All ATMs have camera surveillance to target any possible ‘shenanigans,’” said BankPacific president, CEO, and board chair Philip Flores in a separate email to Saipan Tribune.

The GBA or any of its member banks also immediately sends out an alert once a member falls prey to cyber criminals. “[Once] other banks have been hit they immediately inform all others so we can all check our respective ATMs [as soon as possible].  It’s a professional courtesy shared amongst the banks,” Flores added.

Bank of Hawaii has also not experienced any skimming device, said vice president for communications Melissa Torres-Laing. “We do partner with a vendor to take preventive measures to help secure our ATMs.”

Bank of Saipan also said that they haven’t been victimized by skimmers, according to operations manager Gina T. Hazen.

FHB, meanwhile, sent letters to their cardholders to take precautionary measures for their respective accounts. They also issued new cards with new account numbers as a precautionary measure.

Assistant vice president for card sales division Jon Lucina, in the letter, said FHB takes customer privacy and account security seriously. “We monitor card accounts 24/7 and believe that your card information may be at risk for unauthorized use.”

FHB suggested that their clients destroy their old cards as soon as they receive the new one, with the new personal identification number to be mailed separately. The old cards became invalid last Feb. 22 and they advised their clients to update their PIN by either calling FHB at (800) 545-6300 or by visiting their two branches on Saipan.

“We will continue to monitor activity on your account 24/7. You can help us protect your account by reviewing your monthly account statements carefully and notifying us immediately of any unauthorized transactions,” said Lucina, who added that customers can call (808) 847-4444 or (800) 342-2778 for any questions.
 
More secure ATMs

Rep. Joseph Leepan T. Guerrero (R-Saipan) said CNMI banks should install new and more secure ATMs that could easily detect a skimming device that has been put in place. He added that he would meet with Commerce Secretary Mark O. Rabauliman and Division of Banking officials to address the issue.

“To see how we could ask the banking institutions to retrofit their ATMs to the latest technology where all of these skimming devices could easily be detected. Apparently, most ATMs that are currently being used here are no longer compatible or outdated,” Guerrero told Saipan Tribune.

“It boils down to making sure ATMs on the island are new and are equipped with the latest security measures to avoid insertion of skimming devices. Criminals would create new devices and new ways to commit fraud. Criminals out there also innovate,” said Guerrero.

He suggests that banks in the CNMI should be proactive in addressing this and other concerns regarding bank fraud so their clients could immediately make transactions.

“The depositors, who are victims and being scammed with their accounts, that is their livelihood and they depend on it. The waiting time is long, for them to be compensated for their loss. They are not able to withdraw money or do any transaction,” added Guerrero, who revealed that he also fell prey to skimmers and his account was also compromised.

“It’s a good thing and I was lucky that it was identified immediately. [Still], I had to wait for a replacement card that took two weeks, I was unable to withdraw money. The same thing happens with other cardholders. The bank will cease the usage of the card once their customers’ account is compromised so you could no longer use it for transactions.”