PAYMENT CARD FRAUD

Presented by: Zandro B. Llacuna

Senior Police Officer II
LEARNING OBJECTIVES
• Identify specific types of Identity theft and Credit Card
Fraud;

• Identify the steps to take in the investigation; and

• Identify partners in the field.

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Introduction
ATM Card

A regular card was used by the banks at any ATM machine to

withdraw and deposit money, check account balance and
funds transfers

ATM cards have a few more uses relating to loan payment,

debit and cash advances

ATM card is equipped with magnetic strip – later was the

target of ATM fraud

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Introduction
• What is ATM fraud?
• The term "ATM fraud" can refer to an illegal transaction that is committed
using an ATM, including fraudulent deposits or withdrawal with skimmed
card information.

• Through ATM fraud, a perpetrator can even access the line of credit that is
attached to an account.

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 Introduction
• ATM fraud…
• How it evolved?
• 1960’s
• Traditional ATM physical attacks were aimed at the safe inside the ATM,
through mechanical or thermal means with the intention of breaking the
safe.
• Some of the most common methods include;
• Ram raids
• Explosive attacks and cutting
• Robbery during cash service
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 Introduction
• 2002-2007
• Birth of Skimmers
• In December of 2002, a CBS report confirmed the existence of what had been
widely believed to be tiny devices called skimmers that could "record the
names, account numbers and other identifying information from the magnetic
stripes, to be downloaded onto a personal computer."

• Before “skimmers were an urban myth.”

• In 2003, a customer using an ATM at New York City deli lost $200,000 in one day
with a single skimming device.

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INCREASING THREAT
• Why the increasing ATM threats?

• Growing demand for cash withdrawals

bodes well for ATM market

• Increase in ATM threat and Cybercrime

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Types of Fraud
• Operational Fraud
• Fraudulent issuance
• a bank employee deliberately issues the card(s) and PIN(s) to wrong claimants
in disregard of the issuance verification procedures.
• Fraudulent placements
• This is a case where ATM card production requests are made without any
indication of interest from the account owner. This is commonly perpetrated
by bank employees, BPO agents or through identity theft.

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Types of Fraud
• SKIMMING
• A type of fraud which occurs when an
ATM is compromised by a skimming
devices: a card reader, micro camera or
false keypad which can be disguised to
look like a part of the machine.

• The card reader saves the users' card

data and camera or false keypad
captures the PIN code, which is then
replicated into a counterfeit copy.
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• ATM Skimming Device
• In 2008, camouflaging of a skimmers (device)

• This rudimentary device consisted of a card

reader, put over the ATM's actual card reader,
with a "micro camera" to capture the victims'
PIN keystrokes.

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ID Theft
• Identity theft is the use of someone’s personal information, such as
their Social Security number or date of birth and among others, to
commit financial fraud

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ID thieves harm victims by:
• using their names and other personal information to open
new credit accounts

• accessing existing credit and bank accounts to make

unauthorized purchases

• Victims of ID theft are not held liable for losses, but it takes
time and effort for victims to prove fraud and clear up
themselves

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 Security Codes
• Security codes for Visa, MasterCard and
Discover cards are the 3 digits located on
the back of the card in the signature box.
• Security codes for American Express are 4
digits long, printed on the front of the card
above the right side of the main credit
card number.

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New Cards

• For added protection, credit card issuers ask you to call from home to
activate new credit cards
• As soon as you receive your new card, sign the back of it with a
permanent black ink pen

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In case your card is lost or stolen
• Record all your account numbers and company contact information
and keep the record in a secure place

• That way you can easily find whom to call to report the loss

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Protect your PIN
• Never write down your personal identification number (PIN)
• Never give your PIN to anyone

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What must be done?
• To match these new technologically savvy criminals, it is essential,
that law enforcement agencies cooperate with their counterparts to
share information and collaborate on transnational investigations.

• "Information sharing is a global, cross-industry issue, and we've got to

continue to stay proactive in our approach and design of what will
work best"

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What must be done?

• Collaboration - with global law enforcement.

• Cooperation - ATM vendors to overcome their hardware and software

differences

• Coordination - ways banking institutions and other financial industries

to get involve and enhance information sharing

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Needs
• We need to increase threat intelligence
• limited threat intelligence among service providers, law
enforcement and financial institutions
• We need to advance ATM physical security
• detection and prevention
• We need to have an organized actions to organized crime
• Strategic Plan

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• Source of Informations/Data
• EAST
• BSMA

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 Contact Us
OFFICE ADDRESS: Anti-Cybercrime Group Building
Col. Lagman St., Bagong Lipunan
Camp Bgen. Rafael T. Crame, Quezon City

CONTACT NUMBERS: Hotline: +63 (02) 414-1560

Fax: +63 (02) 414-2199
Facebook: https://www.facebook.com/anticybercrimegroup
Email: pnp.anticybercrimegroup@gmail.com
infoacg@pnp.gov.ph