Smart rolls out anti-fraud services to Land Bank, RCBC clients
MANILA, Philippines – Smart Communications’ digital financial service arm aims to partner with the country’s commercial banks to use its anti-fraud technology against card fraud, which caused around P220 million ($4.901 million*) in losses last year.
“We expect more banks to sign up,” said Leo Villanueva, vice president and head of Smart e-Money Inc.’s innovation, digital ecosystem and alliances department.
On Monday, November 3, Smart signed a deal with the Land Bank of the Philippines (LBP) and the Rizal Commercial Banking Corporation for the use of the telco giant’s anti-fraud service LockByMobile.
Smart claimed that the technology raises the safety net provided by banks using EMV (EuroPay/MasterCard/Visa) “chip and PIN” cards. ATM cards in the Philippines, though, still use the less secure magnetic strip cards.
Smart will provide its platform to both banks. Through this, clients of LBP and RCBC will be able to download the app through Apple's and Google’s mobile app store.
LBP and RCBC have a combined debit and credit cardholders of 14.5 million, according to Villanueva.
The Bangko Sentral ng Pilipinas has reported over a thousand incidents of ATM fraud and scams took place last year involving, with losses reaching up to P220 million ($4.901 million*).
Bank clients have long been subjected to fraudulent card use, such as cash and card trapping, shoulder surfing, use of information from carelessly discarded ATM receipts, card skimming, and cloned cards.
Megalink president Benjamin Castillo described the technology as a way of engaging bank clients to fight fraud.
The anti-fraud technology was initially developed for Smart Money. In 2009, it garnered a citation from the Asia Mobile Awards in Hong Kong under the best mobile money service and best mobile money for the unbanked categories.
“The more equipped they [banks] are the more we engage them in participating in fighting fraud,” Castillo said during the signing. – Rappler.com
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