Banks to pay back cash lost in card scam
Tuesday August 19 2008
BANKS have promised to reimburse thousands of customers who saw their cash card details stolen from criminally- adapted ‘point of sale’ machines.
The Irish Payment Services Organisation discovered over the weekend that criminal gangs had tricked their way into a small number of stores in the northeast pretending to be engineers working for various banks.
Although it was initially feared that as many as 20,000 cards had been compromised in the scam, IPSO said yesterday that the total was closer to 9,000 However, some banks indicated that more customers could be affected.
It is known that on Friday, the criminals replaced ‘point of sale' terminals with previously compromised machines and were then able to scan customers' cards for crucial details.
IPSO says these details could be then passed on to criminal associates outside Ireland, who could make a copy of the card using older, magnetic strip technology rather than the newer chip and pin.
Retailers nationwide are now being warned to be extra vigilant. CCTV footage and a number of devices taken from the shops affected are being studied as part of a garda investigation.
Concerned
Deputy data protection commissioner Gary Davies said his office was concerned over how the data was stolen so easily.
“We're surprised it happened,” Mr Davies said. “It's the first time retailers have allowed access to the data of their customers. He said retailers faced with an unexpected visit from someone claiming to be an engineer might have asked more questions.
“We're interested in the procedures of some of the retailers,” Mr Davies said.
Restrictions on cash withdrawals from ATMs and a limited number of card blockages imposed by some of the eight card providers affected have mostly been lifted.
But some measures are still in place, with Bank of Ireland only allowing customers to withdraw €250 a day from ATMs outside Ireland.
However, other affected banks, including AIB, have not placed any restrictions on customers' withdrawals.
Gardai later confirmed that investigating officers seized 47 bogus devices from various stores. Offices also warned retailers to check their devices and the identity of any person attempting to carry out maintenance on sales terminals.
- Fiach Kelly
