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29 March 2024

Banks adopt new fraud-control measures

Emirates NBD has upgraded its customer relationship management system as part of its plan to improve security. (SATISH KUMAR)

Published
By VM Sathish

Banks in the UAE have launched new security improvements that include changing account numbers after a series of fraud cases.

Emirates NBD has told all its customers that it is upgrading its customer relationship management (CRM) system. Account numbers will be changed once the information systems of the merged banks – Emirates and National Bank of Dubai – are integrated.

One of the fraud cases involved a swindler who escaped with Dh1.5 million after producing a fake driving licence when he was asked to show ID. And a criminal syndicate used forged credit cards to purchase jewellery and other valuables in Sharjah.

Banks that recently jacked up their security procedures are once again enhancing their CRM systems in an effort to make them foolproof.

An official spokesman for Emirates NBD said he could not comment on the case of the customer who allegedly lost Dh1.5m "because it is a court and police case". But he confirmed the bank was upgrading its CRM systems.

"We have every intention of upgrading the systems," he said. "The group already has several highly specialised systems within our high-net-worth businesses and a market-leading system is already in place for the customers of the National Bank of Dubai, which is an Emirates NBD company. Our intention is to incorporate this into other group entities.

"As part of Emirates NBD's continuous investment in the latest technology and as part of the integration between the two banks, Emirates NBD is in the process of upgrading its IT system. We have chosen Finacle from Infosys as the new core banking system for Emirates NBD. We are migrating both, Emirates Bank and NBD, in two phases onto the new system.

"We are making every effort for this transition to be as seamless and smooth as possible for us and our customers. Upon completion of this upgrade the account numbers will, indeed, change but everything else will remain the same."

He said existing automated credits and debits would continue to operate as usual and current ATM, debit and credit cards would not be affected. Existing PINs, cheque books and post-dated cheques would also be unaffected and current internet banking, BankNet and smartBusiness IDs would remain valid.

Anil Kumar, Managing Director of Futech Software Solutions, said: "Banks are currently upgrading their CRM systems to plug loopholes concerning the identification of customers. The improvements will help counter staff to verify the identity of customers in different ways, including signature matching and photographs. We have enhanced the system for a few banks and others will have to follow suit."

Saeed Khalifa Mohammed, the customer who lost Dh1.5m from his bank account, told Emirates Business: "Somebody went to the Al Mustafa branch and withdraw cash by showing a fake driving licence issued in Abu Dhabi. "Even the photo on the licence did not match that of the person who presented it. The staff could have asked the customer to remove his sunglasses that covered half of his face.

"The number presented by the fake customer did not match my mobile number on which every day I get SMSs from the bank. A man in his 40s presented himself as a customer in his 30s."

Sources said a criminal syndicate was believed to have collected the ATM and credit card details of several bank customers in Mena and used high-tech means to take money from their accounts.


Fraud management

Futech Software Solutions is working closely with several leading banks in the UAE, said Anil Kumar, Managing Director of the company.

"We have installed new fraud control software in some of the leading banks here," he said. "The system allows banks to set high value credit card and ATM card transaction limits for a short period ranging from five minutes to a few hours or a few days.

"Banks can set a small withdrawal limit of Dh2,000 or Dh 5,000 in consultation with the customer for normal transactions and when they want to conduct a high-value transaction banks can communicate directly with the customer through mobile phone or SMS or other electronic methods to set a temporary higher credit limit of, say, Dh 50,000 for a particular period. Once the withdrawal or credit card purchase has been completed the customer's withdrawal limit goes back to normal."

He said more banks planned to introduce similar features but was unable to name them for security reasons.

Jonathan Miller, Director, Visa International, earlier said: "Visa is aware some banks in Mena may have been adversely affected by some fraudulent activity and we are working with all relevant parties to investigate any potential data compromises. While investigations are ongoing, Visa is liaising with banks in the region to ensure security measures are being taken to prevent potential breaches." He said security and fraud management were of utmost importance to Visa.

 

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