Date Posted: 4/24/2012 12:28:23 PM
Posted By: SimonMburu Membership Level: Silver Total Points: 838
Kenyan banks have lost millions of shillings to fraudsters and now they are on the race to secure their systems against a new wave of cyber crime. The technology-based banking services have rapidly promoted the increase of this crime.The Central Bank of Kenya, CBK has reported an approximate loss of 100 million shillings to fraudsters every month by commercial banks across the country. Here are some of the cyber crimes our banks are battling withCash trapping:This blocks an ATMs (Automatic Teller Machine) cash dispenser so that the bank notes are not presented to the user as he or she withdraws the cash. Once this happens, the client assumes that the teller machine is defective and they leave, this now when the culprits present their souls and take the money.Compromised pin:The criminals compromise the PIN entry slot (Personal Identification Number) and when a customer keys in the PIN the machine acts like it is defective but it records the PIN. After the client has left, the criminals come in to get the PIN and they now start to haunt the respective card.Card Trapping:Overlay devices are used to trap the PIN as the card is set to stack inside the ATM machine, tapes and wires are used to make sure the card has been hold in the machine.Security measures have however been employed to ensure card details are not copied at the machines.Electronic money laundering:Online cash transfer or electronic fund transfer, fraudulent cheques among others are examples of transactions that are prone to this crime as hackers and crackers tap the money and transfer it to other accounts. Emerging technologies have however assisted in concealing theses crimes but the criminals grow smarter as technology advances.Electronic vandalism:Financial institutions in Kenya utilize complex data processing systems and in the case of a damage the consequences are fatal. Intruders work extra hard to get data and spoil the systems in order to flee the banks' clients.Card information skimming:This involves capturing and copying user data at the ATMs and then use it to access accounts by creating fake ATM cards with genuine access authority. They are sometimes able to take big loans in your name. Most banks nowadays have measures to protect clients against this fraud.
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