Bangko Sentral ng Pilipinas' (BSP) supervised institutions (BSIs) must replace magnetic strip-based cards with Europay, Mastercard and Visa Chip (EMV) chip-enabled cards by January 1, 2017, reminded BSP.
"We already gave them three years to migrate, to replace cards, including the card readers (in Automated Teller Machines)," said Johnny Noe Ravalo, BSP Assistant Governor, in an interview with DZMM.
The central bank issued a directive in August 2013 requiring its supervised institutions to shift their entire payment network to the "more secure" EMV system. BSIs include banks, non-banks with quasi-banking function (NBQB), non-bank electronic money issuers, and other non-bank institutions which are subject to BSP regulation and/or regulation.
In a report by ABS-CBN News last week, BSP said unauthorised withdrawals from ATMs remained to be the most common complaint they receive every day with 11 customer complaints daily.
According to Ravalo, some perpetrators used skimming to withdraw cash from the victims. Skimming is the process of copying the data stored on user's card using a tiny card reader - which is only half of an inch thick - and a micro pin camera to detect the password. "The card reader allows you to make a duplicate ATM card."
In line, Ravalo explained magnetic strip-based cards are more prone to fraud since it contains the personal information of the user like account number, and the personal identification number (PIN).
BSIs that fail to migrate to EMV system may be suspended, revoked authority to provide electronic products and services, and/or fined P30, 000 daily until full compliance.
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