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  • 2 years ago
The Central Bank of Trinidad and Tobago is reporting that fraudulent activities relating to credit card skimming are down. However, the news is bitter-sweet, as the entity states that another type of fraud is on the rise, that relates to the use of credit cards in making online payments.
Alicia Boucher has the details.
Transcript
00:00 The Central Bank of TNT is the regulator for banks and other financial institutions like
00:07 credit unions and insurance companies. Between the period 2020 and 2023, CBTT's Deputy Director
00:14 of Financial Institutions, Michel-Francis Panto, says six incidents of fraud leading
00:20 to a material breach of customer information were reported by commercial banks, comprising
00:25 cheque fraud, withdrawals by customers in excess of deposits, and employee fraud using
00:31 false identification, documents and signatures.
00:34 Insurance companies also provided 52 notifications of financial fraud, and that was primarily
00:41 involving their sales reps and agents for that period, for things like non-remittance
00:46 of insurance premiums, dishonored cheques, and fraudulent certificates and documents.
00:52 The CBTT says among these categories, cheque fraud is more prevalent. As for cybersecurity
00:58 in relation to credit and debit cards for the same period,
01:01 "Just about 20,000 cards were impacted or compromised over the period."
01:06 But the CBTT says with over 850,000 debit cards and 250,000 credit cards in issue, it
01:13 accounts for about 2%. CBTT states that the commercial banks have a high level of cybersecurity
01:20 procedures in place compared to other financial institutions, and it notes that these are
01:25 always changing due to the ever-evolving challenges.
01:29 As it pertains to skimming, the central bank highlights that the Europay MasterCard Visa
01:35 or EMV technology is working.
01:37 "So that reduced the incidence of skimming on cards, right? But what we're seeing increasing
01:43 now based on the data that we received is that card not present, transaction fraud is
01:48 increasing. So things doing like when you do online payments and you give out your numbers
01:55 and that type of fraud, that is increasing."
01:58 Joint Select Committee member Jayanti Lutchmedial reveals that she was skimmed in 2018.
02:03 "I went to bed that night and woke up in the morning and found $20,000 withdrawn from my
02:07 bank account at an ATM in Woodbrook while I was asleep in San Fernando and at a casino."
02:14 She says the police gave her a report to take to her financial institution, and the financial
02:19 institution refunded the money. But the matter was never investigated further.
02:24 According to the fraud squad, these cases often lead to dead ends, especially when the
02:29 perpetrator cannot be identified or when there's the falsifying of identification and accounts
02:34 electronically.
02:35 "So we are way behind legislatively in properly bringing these matters to any form of fruition."
02:46 While stakeholders have placed on the GSE's record that they would welcome and are willing
02:50 to assist with creating new legislation, GSE member and attorney-at-law Keith Scotland
02:55 is of the view that the hands of the authorities are not tied with the pieces of legislation
03:00 that exist, like the Data Protection Act, the Electronic Transaction Act, the Central
03:05 Bank Act, the Electronic Transfer of Crime Act and the Common Law.
03:10 "Until new legislation is proclaimed, you may find that there is and there are some
03:17 avenues which perpetrators even now can be charged."
03:21 Meanwhile, the CBTT says it is working with the International Monetary Fund on training
03:26 for staff in order to start conducting site visits at financial institutions in order
03:31 to verify their cybersecurity and anti-fraud mechanisms.
03:36 The Joint Select Committee was held to examine the anti-fraud and customer protection systems
03:41 in the financial services sector.
03:43 [BLANK_AUDIO]
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