Law enforcers, bankers and the Bangko Sentral ng Pilipinas here are scrambling to find ways to prevent more fraudulent activities involving “access devices” such as credit cards, as the City Police Chief warned that a crime syndicate is believed to be operating here in Dumaguete.
According to Supt. Jovito Atanacio, Dumaguete police chief, there are still a number of access device fraudsters believed to be in this capital city, although he declined to give specific details.
He disclosed this is an organized crime syndicate that has wide reach outside of Dumaguete, and may be deeply-entrenched, targeting unknowing establishments who could not detect a fraudulent transaction because of the intricacies of the use of cards that may only seem authentic, or may even be genuine.
The matter is a serious cause for alarm, while the police are trying to determine how to address the problem, Atanacio admitted.
The cards would usually be credit, debit, or automated teller machine cards, and even rewards cards. Some may be fake, cloned, or authentic but which were previously lost, stolen, or deactivated, and therefore, non-existent.
An access device, as defined by Republic Act 8484, refers to any “card, plate, code, account number, electronic serial number, personal identification number, or other telecommunications service, equipment, or instrumental identifier, or other means of account access that can be used to obtain money, goods, services, or any other things of value, or to initiate a transfer of funds (other than a transfer originated solely by paper instrument”.
The Police Chief’s disclosure comes in the heels of the arrest last week of 12 men from Metro Manila for allegedly defrauding a number of business establishments in Dumaguete with the use of access devices, victimizing business establishments such as a cellular phone shop and an appliance center, among others.
During a meeting Friday with the Negros Oriental Bankers Club Inc., headed by its president Elmer Teves, the BSP-Negros Oriental headed by Nicasio Parco, and the Dumaguete Police Station, said they observed that credit card theft and similarly-natured fraudulent activities could not be entirely stopped.
This is due to the highly- advanced technology which fraudsters are using, that has a number of loopholes that have yet to be addressed, explained the NORBAC president, manager of East West Bank here.
While stop-gap measures are being suggested by the banks, there is yet no tangible means of preventing credit/debit card theft or ATM skimming, among others, he said.
Teves disclosed that some ways to minimize risks of falling prey to these access device fraudsters are for cardholders to swap their cards for the EMV-compliant (Europay- MasterCard-Visa) or chip-enabled kind (from the older magnetic stripe type); for cashiers to be judicious in accepting and transacting with the use of cards; and for security guards to closely monitor ATMs.
Seminars and trainings on how to detect frauds and scams are also being eyed by both the NORBAC and Bangko Sentral as a means to help prevent or minimize thefts.
Supt. Atanacio himself admitted this is the biggest challenge yet for the police, and that it was difficult for the police to make arrests when transactions done with cloned or fake access device cards look “legitimate with proofs of purchase”.
It is only much later that a transaction is discovered to be bogus when the issuing bank or the company of the access device reports on the illegal transaction.
During the arrest of the 12 suspects last week, law enforcers confiscated access devices such as credit cards and rewards cards from them.
Some of the cards, however, successfully transacted with the merchants, or those manning the swipe machines, also known as point-of-sale terminals.
The syndicated group members were denied bail, and are now behind bars at the City Jail after they were formally charged in court, Supt. Atanacio told the bankers and the Bangko Sentral officials.
He briefed them on the current situation in Dumaguete, disclosing that the Philippine National Police has organized Task Force DuVaSiBa(Dumaguete, Valencia, Sibulan, Bacong)which comprises the so-called Metro Dumaguete growth area, to intensify joint operations against fraudsters and scammers.
On the part of the PNP, Atanacio said they are relying on the support of the banks who they asked “not to limit [the provision of] information during investigations” so the police can continue with their anti-criminality efforts.
Although he said they understand the banks’ non-disclosure policy on their clients, Atanacio explained that during investigations, some critical information are required to help track down the suspects, or solve a crime.
As to the presence of more scammers in Dumaguete, Supt. Atanacio said the police are aware that the 12 arrested from Manila actually have contacts here who have even sent food to the suspects detained at the police station through a bystander paid to do the delivery.
Officials of the Bankers’ Association, the police, and Bangko Sentral are now urging the public to be wary of making transactions with the use of their access cards, and to report to the police immediately if they detect something suspicious.
Meanwhile, Dr. Greg Baccay of Bangko Sentral here announced that banks have until Sept. 30 to issue EMV cards to their clients, otherwise they will be held responsible for fraud losses, such as through ATM skimming.
The NORBAC also announced its donation of five units of hand-held radio sets to the Dumaguete City Police Station, through Supt. Atanacio, to beef up communications capability of its police personnel. (With reports from Judy Flores Partlow/PNA)
