Automated Teller Machine (ATM) fraud in Oyo town has become a worrisome phenomenon. Some of the banks whose customers were affected appear helpless. The situation has seemingly made some customers become confused, as the number of those who are victims has increased of late.
One of the victims of ATM card scam, Alhaji Wasiu Alaka, a customer with one of the new generation banks in Oyo alleged that his bank account was burgled and about N2 million was stolen via ATM withdrawals while he had his ATM card on him.
Alhaji Alaka alleged that as at June 5, this year, he had N1.756, 048.56 in his account. Out of this amount, the sums of N1.5 million was withdrawn in the following manner: N190, 000 through ATM Card, N940, 000 by transfer through POS, and another N346, 000 through another transfer by POS.
“As at the time the money was purportedly withdrawn through ATM Card, I was in my bedroom and in possession of the ATM Card for that account. It was the next day when one Alarape Moshood paid a sum of N70, 000 into my account, after which I received an alert from the bank that money had been fraudulently withdrawn from my account.”
He alleged that the Bank Manager was promptly contacted with evidence of the ATM alert on his (Alaka) mobile phone, as well as statement of account.
According to him, he was later issued with a form to fill.
Said he: “After two months of futile efforts to get response from the bank, I contacted my lawyer who formally lodged complaints to the offices of the Director, Legal Services, national head office of the bank in Lagos; Customers’ Protection Unit, Central Bank of Nigeria; Commissioner, Public Complaints Commission, Oyo State and the Economic and Financial Crimes Commission (EFCC), Ibadan office through courier services. None of the agencies had responded to the complaints.”
“I later proceeded to the Special Fraud Unit of the Nigeria Police in Lagos, where a superior police officer gave me a note to the then Commissioner of Police Oyo State, Leye Oyebade, who immediately directed the anti-kidnapping unit to handle the matter.”
Commenting on the matter, Mr. Muyiwa Alamu, an expert in Information Communication Technology (ICT) said: “Instances abound in banks when a customer would receive debit alerts right in the presence of a banker in the banking hall and he has his ATM card on him. When it happens like that, you don’t need to look far off because the perpetrators are right inside the bank. “Those in the banks could have the code; they are the ones who give out the ATM cards. They may have cloned the cards.”
He further alleged that banks’ frauds perpetrated via the ATM may be more complex and may have gone far beyond the cloning of ATM cards.
According to him, criminals may attach devices to Automated Teller Machines to record the account data stored on the magnetic stripe on the back of the ATM card. This practice, according to him, is known as skimming.
“The card’s Personal Identification Number (PIN) can be spied with a secret camera or a fake number pad overlay.
“Unfortunately, the victim of such scam may have to bear the brunt because it is always difficult to prove to the banks that the victim is not liable,” he said.
When contacted, Head of Operation Oyo branch of the bank (name withheld), absolved the bank of any fault.
He insisted that there was no way money could be transferred through the POS without the use of an ATM card, adding that the fraudsters might be from within.
“The issue of cloning is inadmisible here. The fraud was perpetrated from another neighbouring bank. The matter was reported to the police and they came for investigation. We wrote our report and submitted it to the police.
“The issue is that the account into which the money was sent belongs to someone. Let the account be traced, so that the fraudsters can be unmasked. Those close to Alhaji Alaka must be closely examined, because his ATM card might have been taken for fraudulent purpose.”
On the refusal of the bank’s legal department to respond to a written petition, he said the corporate head office had responded the legal department [though he did not show a copy as evidence], saying the bank’s branch was absolved of any complicity.
Several efforts to speak with the branch manager were futile, as he was said to be away on official assignments.
At the EFCC Zonal office and the Pubic Complaints Commission both in Ibadan, none of their officials was available for comment, despite repeated visits.
At the state police headquarters, Eleiyele, Ibadan, our correspondent reliably learnt from two superior officers who pleaded anonymity due to the sensitive nature of the matter that the issue was being investigated.
However, during a press briefing, a copy of a letter from the office of the Director Customers’ Protection Unit of the Central Bank of Nigeria Abuja was made available to our correspondent.
The letter with reference number CPD/CMD/CON/ZBN/01267 dated August 30, 2016 and signed by Mr. B.E. Lartey for the Director, CBN Protection Unit was addressed to Alaka’s lawyer, Barrister Olawale Omoloye.
The letter reads in part: “We write to inform you that we are unable to accede to your requests to compel [your client’s bank] to refund the money alleged to have fraudulently withdrawn from the account.
“Our decision is predicated on the fact that the alleged fraudulent transactions were consummated with your client’s original debit card and authenticated by his PIN which is only known to him.”
