Indonesia’s major lenders and banking regulator are introducing tighter security measures in a bid to foil future scam attempts following a recent skimming attack, which targeted customers’ bank accounts with state-run Bank Mandiri. According to Bank Mandiri’s electronic banking head, Rahmat Broto Triaji, the state
Indonesia's major lenders and banking regulator are introducing tighter security measures in a bid to foil future scam attempts following a recent skimming attack, which targeted customers' bank accounts with state-run Bank Mandiri.
According to Bank Mandiri's electronic banking head, Rahmat Broto Triaji, the state lender had launched new ATMs fitted with jamming devices.
“The jammer will block electromagnetic waves that are transmitted by a skimming device. Once the waves are blocked, the device will not function,” he said.
Rahmat added that the bank's ATMs were equipped with a light sensor that would automatically shut the machines down in the event of suspicious activity. “A skimming device placed inside the card reader obstructs the lighting. The lack of proper lighting will then be detected by the sensor,” he explained.
Mandiri engaged an independent third party to test and attempt to penetrate its system at least twice a year.
The number of cards affected in the skimming case exceeded 1,000, most of which were used in overseas transactions, Rahmat said.
Bank Indonesia (BI) Deputy Governor Ronald Waas, who oversees the banking industry's payment systems, said the central bank would step up its supervision of the lenders' risk-management mechanisms.
BI, according to Ronald, had no plan to change the deadline for all debit cards to incorporate chip technology from the current magnetic strips, even though the use of chips would significantly reduce the risk of skimming. The deadline is still set for Dec. 31, 2015.