Fraudsters use fake cards to withdraw $12.7m from Standard Bank ATMs

Posted by News Express | 24 May 2016 | 3,104 times

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Standard Bank confirmed on Monday it is the South African bank referred to in Japanese reports whose data leak resulted in ¥1.4bn ($12.7m) being stolen from about 1,400 automated teller machines (ATMs) in Tokyo on May 15.

“The South African banking operations of Standard Bank Group have been the victim of a sophisticated, co-ordinated fraud incident,” Standard Bank said.

“This involved the withdrawal of cash using a small number of fictitious cards at various ATMs in Japan. The target of the fraud has been Standard Bank and there has been no financial loss for customers.

“Standard Bank has taken swift action to contain the matter and the gross loss to the bank is estimated at R200m. This is prior to any potential recoveries that may serve to reduce the loss.

“The relevant authorities have been alerted. Investigations are at a sensitive stage and further information will be provided as appropriate,” Standard Bank said.

Japanese newspaper Mainchichi reported on Sunday that Japanese police would work with South African authorities through the International Criminal Police Organisation (Interpol) to look into the major theft, including how credit card information was leaked, the sources said.

The theft at convenience store ATMs took place on the morning of May 15 in Tokyo and 16 prefectures across the country, and police believe more than 100 people might have co-ordinated in the unlawful withdrawal, Mainchichi reported.

In each of the approximately 14,000 transactions, the maximum amount of ¥100,000 was withdrawn from ATMs using the fake credit cards, according to the sources.

ATM transaction data suggested that information from 1,600 credit cards issued by a South African bank was used, the sources said.

•Text courtesy of BusinessDAY South Africa. Photo shows Standard Bank ATM.

Source: News Express

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