Bangko Sentral ordered banks to replace their ATM machines and cards to curb hacking incidents. More of this, <a href="" target="_blank">here</a>.

While automated teller machine (ATM) fraud is relatively low, the Bangko Sentral ng Pilipinas (BSP) said the risks are rising.

The BSP urged banks to speed up their switch to more fraud resistant technology.

By January 2015, the BSP said banks should adopt the “3DES” system which allows data to be encrypted three times in the machine, making it much harder to hack. The current system use a single encryption.

“The migration to EMV chip-card as well as the migration of machines to a triple DES encryption system are just some components of the broader reform process the BSP is instituting, mainly to upgrade the way our banks and our supervised institutions,” said Bangko Sentral Deputy Governor Nestor Espenilla in a phone interview with ANC.

He said that at present, 80% of ATMs already have the 3DES technology.

By January 2017, Espenilla said all ATM cards should also be replaced from the magnetic strip technology to the more secure “EMV chip-enabled” cards.

Espenilla said they gave the banks the time because of the cost of the migration.

There are over 12,000 ATM outlets nationwide. Espenilla said the ATM fraud cases in the Philippines are not that high compared to other countries but such changes will be necessary as the “level of risk is escalating.”


Post a Comment