Dubai: The Central Bank of the UAE on Tuesday asked a few banks operating in the country to block the usage of a significant number of debit cards on suspicion of potential data compromise.
From information available from the banking industry sources, the potential data compromise was limited to single automated teller machine (ATM) and all cards suspected of data compromise have been notified to be replaced by the issuing banks.
In response to Gulf News’ queries based on information received from customers, an Emirates NBD spokesperson confirmed that on Tuesday, 26 August 2014, the bank was directed by the Central Bank of the UAE to block the usage of 69 debit cards, which were at potential risk of fraudulent misuse as they were used on an ATM of another bank which was suspected of being compromised.
As a result, the identified customers were contacted by Emirates NBD and informed of the need to replace their cards.
“We wish to clarify that the exercise carried out by Emirates NBD on August 26, is also in keeping with this bank’s commitment towards providing a secure and safe banking experience for its customers. Customer safety and security are considered highest priority for Emirates NBD, and the bank continues to implement security measures to safeguard against all forms of unauthorised banking transactions,” Emirates NBD spokesperson said in an emailed statement to Gulf News.
A few other banks contacted by Gulf News is yet to responded to the extent of impact on their cards.
A number of banks including two regional banks such as the UAE-based RAKBank and Oman’s Bank Muscat suffered losses in 2012 when a global cyber crime syndicate stole $45 million by hacking into credit card processing firms and withdrawing money from ATMs in 27 countries.
The level of reported economic crimes in the Middle East declined last year according to a recent Global Economic Crime Survey by PwC earlier this year.
The survey showed that only by 21 per cent of organisations in the Middle East reported economic or financial fraud, compared to 37 per cent globally.
The study also showed the future trend is alarming as more than 38 per cent of the respondents in the Middle East indicated that they expect their organisations to suffer from economic crime over the next 24 months.
The UAE is one of the most proactive countries in the Middle East region in countering money laundering and financial crimes, according to KPMG. KPMG’s Global Anti-Money Laundering (AML) Survey 2014 showed that the Middle East region needs to be more vigilant against financial crimes.
