RBI asks banks to install anti-skimming devices to counter ATM fraud

The central bank has also raised red flags over the delay in the process of upgradation of ATM operating system saying it could hurt customers and damage the bank’s reputation.

Representative image |Photo Credit: Indiatimes

New Delhi: The Reserve Bank of India has asked banks to install anti-skimming devices and 'white-listing' solutions at automated teller machines (ATMs) after many cases of card-skimming were reported recently. The apex bank has set a deadline of March 2019 for this, the Times of India reported.

Fraudsters attach ATM skimmers over the card slot of a cash machine. These devices have the capability of ‘reading’ information from the card’s magnetic stripe and then either store or transmit the information to the fraudster, who then clones the card using the information. Anti-skimming devices send out signals that prevent the skimmer from functioning. Meanwhile, white-listing solutions allow only trusted applications to work on the ATM and block any other application, the TOI report said.