Cardless cash machine withdrawals- how safe are they?
Are banking systems that are used to let customers withdraw money from cash machines without their cards as secure they could be?NatWest recently launched two new systems, Emergency Cash and Get Cash, which generate a security code allowing customers to withdraw money from cash machines.
But one NatWest customer lost more than £900 when fraudsters stole his money via this new platform.
The money disappeared in 11 cash machine withdrawals in just three days, each one not exceeding the £100 limit NatWest imposes per cardless cash machine withdrawal.
The NatWest advertisement publicising the cash machine security code system suggests if you have lost your card, you have no need to worry, and uses the slogan “helpful banking.”
NatWest quickly accepted he had not made the withdrawals, and a refund seemed straightforward.
But NatWest then accused him in a letter of giving his personal details to a fraudster via a phishing email: “Customers are required to keep their card details and Pin secure at all times. After taking the circumstances of the fraud into account, I am not in a position to refund the disputed transactions.”
After the BBC Money Box program contacted NatWest, it said it would refund the Natwest customer the £950 as a gesture of goodwill.
NatWest said it had strong security measures in place for its Emergency Cash and Get Cash withdrawal systems but admitted fraudsters had in some instances been able to withdraw money using both systems: “We are fully committed to the prevention of fraud and have stringent security procedures in place in this regard. The Get Cash app is only available through the mobile banking App, not as a standalone application.
“Enrolment for the app requires the customer to first register for online banking, then mobile banking and can then proceed to download the app for their mobile.”
It said applicants for mobile banking, needed to supply a combination of card and personal details, and their online banking number.
A letter is then sent to the customer’s home address alerting them to the fact that mobile banking has been activated.
Dr Steven Murdoch, from Cambridge University’s Computer Lab, believes any criminal who finds a way round the security- would be amply rewarded: “I’m sure a lot of fraudsters are thinking about using this application because it’s now relatively easy for banks to identify fraudulent transactions and reverse them, even several days after they’ve happened.
“They can use it to get cash I that’s what’s going to make it a priority for them.”