ATM fraud on rise, banks keep mum fearing embarrassment

KATHMANDU, April 9: 

Though the crimes related to ATM fraud are on the rise, including the misuse of the visa and master cards, the banks refuse to acknowledge the problem fearing loss of reputation.

According to highly-placed police officials, who have been part of the investigations related to ATM frauds, many banks report the mounting losses due to ATM fraud informally as they are reluctant to go public to avoid embarrassment.

Organizing a press meet in Kathmandu, Central Investigation Bureau (CIB) of Nepal Police on Monday made public three Indian nationals allegedly involved in banking crimes. According to CIB, those arrested are Suresh Singh Bista (18), Mohan Singh Bista (23) and Chandra Singh Bista, all from Indranagar of Nainitaal district in India. According to CIB Director DIG Kesh Bahadur Shahi, the three were arrested on March 24 from Mahendranagar of Kanchanpur District while withdrawing money from an ATM machine using fake cards.

After we questioned them we found that many organized groups are involved in the crime, DIG Shai said.

The three have confessed that they had bought fake ATM and credit cards from India and had withdrawn money from different places in Nepal and India. They said that they bought the cards from Sanju, an Indian national, and Suraj Gurung, who lives in Kathmandu.

DIG Shahi said that the police is investigating the three accused who had withdrawn Rs 1,22,000 from 16 different account numbers of Investment Bank. According to the police, they had also withdrawn money from Nabil Bank, Siddartha Bank and Sunrise Bank. The police have also confiscated 29 fake ATM cards of Nepal Investment Bank, Himalayan Bank, Laxmi Bank and Panjab National Bank, of India, and seized Rs 66,600 and INR 9,070 in cash from their possession, along with a car bearing an Indian registration number.

"This is an example of crime syndicates that have flourished in Nepal in recent years," said Shahi, adding, "ATM fraud is possible only with the involvement of hackers or authorized person within the bank."

Six months ago Anil Bhakta Suwal, an employee of Himalayan Bank Limited (HBL), was found to be involved in committing fraud worth Rs 56.7 million.
Though his family members had promised to pay the amount along with fines, Suwal is still on the run failing to pay the amount, according to the sources.
Once those who sell fake cards are identified, we will arrest more people, said DIG Shahi.

Source: Republica