Banks are also looking at other ways to strengthen the security system in ATMs, including a two-way communication.

Banks suggest 6-12 hours limit between two ATM transactions per user to prevent fraud
Money Money Tuesday, August 27, 2019 - 16:51

A suggestion is being made that withdrawals from ATMs may be staggered to help prevent frauds using cloned credit or debit cards. The suggestion has come from a group of banks, the Delhi State-Level Bankers’ Committee (SLBC). The time lag can be anywhere between six to twelve hours, reports a Times of India report.

Delhi NCR has been facing a large number of such ATM frauds. The bankers claim they find the maximum number of such fraudulent withdrawal occur in the wee hours of the morning. If some curbs can be introduced with a few hours between two back to back withdrawals, the scope of frauds can be limited, members of the SLBC feel.

This is just a suggestion and may have to be discussed at the level of individual banks and then the RBI. Representatives of 18 banks were present at this meeting of the Delhi SLBC. It is said the exercise was at the initiative of the Department of Financial Services, in the Ministry of Finance.

Some of the other suggestions to be discussed at the meeting included adding the one-time-password verification for ATM withdrawals too like it is done for online transactions. There’s even a suggestion to make the ATM interactive. An example cited was if someone were to enter an ATM with his or her helmet on, the ATM could give out a voice command to remove the helmet before attempting to withdraw cash. This will ensure the person’s face is captured by the CCTV camera.

Oriental Bank of Commerce claims it is already implementing some of these and claims 300 out of its 2600 ATMs across the country have been provided with these facilities described above. They have also established a central control centre for ATMs which can slowly remove the need for a security guard. The security guard arrangement has not been quite effective based on reports.

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