Banks to upgrade old ATMs soon

Banks will soon be investing millions of dirhams to replace old and flawed ATMs in line with the recent Central Bank directives although most banks undertake this exercise incorporating latest technology on a regular basis, said bankers yesterday.

However, bankers observed that cooperation from customers, the government and tight security measures are required to fight ATM fraud rather that mere replacement of ATMs.

Currently, there are some 985 ATMs in the UAE and about 99 per cent of them are part of the GCC Interbank Switch.

"Abu Dhabi Commercial Bank (ADCB) had already decided to replace many of the old ATMs. It is an ongoing exercise and we are taking all measures to step up security. Of course, we will go by Central Bank directives to replace certain brands of ATMs," said Khalifa Mohammed Hassan, managing director of the bank.

"Ours was among the less affected banks with very negligible losses," he added.

National Bank of Abu Dhabi (NBAD), which has some 107 ATMs, has upgraded about 80 per cent of its ATMs in the last four years with latest technology, compliant with the smart card reader, said a senior official of the bank.

Union National Bank, which has some 70 ATMs, is also rolling out plans to upgrade and instal new ATMs wherever necessary, said Mohammed Nasr Abdeen, chief executive of the bank. "It goes with our plans to regularly upgrade the ATM systems."

First Gulf Bank (FGB) with a total of eight ATMs has none of the ATM machines of the model NCR 5685. "We upgrade or replace ATMs as and when the need arises," said a senior official of the bank.

Bankers were categorical that no system is foolproof as fraudsters are always on the prowl to find loopholes.

"Fraudsters will always come up with some new way to commit fraud. Therefore, while banks have to take all possible security measures, even the public, the government and customers should cooperate in our fight against such gangs," said Khalifa Hassan.

Agreeing that frauds happen regularly, a senior Central Bank official said banks and customers need to be extra cautious. "There are ATMs here which are 15 years old and some were even purchased second-hand. Banks should constantly upgrade or replace old ATMs and the latest scam should serve as an eye-opener to all in the country and the region."

At the GCC level, meetings are being held to devise ways and means to counter fraud because the ATMs are part of the Interbank Switch, he added.

The current cost of a new ATM varies from $20,000 to $25,000 depending on the features available, with the average life span being seven to eight years.

If 85 per cent of the ATMs in the UAE (according to reports) have to be replaced, it could cost banks several million.

TIPS

Customers have to be alert
*At the ATMs, ensure nobody is peering over your shoulder. Enter your PIN number discreetly and never disclose it to anyone.

*Do not forget to take your ATM card from the machine after the transaction ends.

*If you have asked for a mini statement, do not leave it behind. Either take it with you or tear it to bits.

*Monitor your account regularly and report any discrepancy immediately.

*Avoid using the ATM machine when there is a crowd.

ATMs in the GCC
Saudi Arabia: 2,500 UAE: 985 Oman: 337 Kuwait: 300 Qatar: 240 Bahrain: 159