In­sti­tu­tions urged to plug loop­holes in iden­ti­fi­ca­tion


The Bank of Thai­land has ex­horted fi­nan­cial in­sti­tu­tions to keep a lid on loop­holes in trans­ac­tions to pre­vent so­phis­ti­cated on­line theft.

“Up­grad­ing tech­nol­ogy re­lated to iden­ti­fi­ca­tion is very im­por­tant,” said cen­tral bank gover­nor Veerathai San­tiprab­hob.

The Bank of Thai­land is­sued an an­nounce­ment to fi­nan­cial in­sti­tu­tions on Aug 2 re­gard­ing the elec­tronic-Know Your Cus­tomer (e-KYC) sys­tem to help banks with new cus­tomer iden­ti­fi­ca­tion tech­nolo­gies, such as fin­ger scans and iris scan­ners, he said.

There are four groups that could be af­fected by em­bez­zle­ment via new fi­nan­cial tech­nol­ogy: con­sumers, fi­nan­cial in­sti­tu­tions, telecom­mu­ni­ca­tion com­pa­nies and reg­u­la­tors, said Mr Veerathai.

“The re­cent [in­ter­net bank­ing fraud] in­ci­dent has ex­posed a loop­hole in­volv­ing all four groups,” he said.

Phan­suthee Meeluekij, an auto ac­ces­sories busi­ness­man in Ayut­thaya, lost a large sum of money in July af­ter mo­bile op­er­a­tor TrueMove is­sued a new SIM card to the sus­pected thief, ap­par­ently with­out check­ing his ID.

The SIM card was linked to Kasiko­rn­bank’s K-Cy­ber Bank­ing and the thief cleaned out Mr Phan­suthee’s ac­count, leav­ing only 58 baht from the orig­i­nal amount of 986,700, af­ter ob­tain­ing a one­time pass­word from the bank with the new SIM card.

The thief also re­set the pass­code of the in­ter­bank­ing ser­vice af­ter ob­tain­ing the new pass­code from the bank’s call cen­tre.

Since fi­nan­cial tech­nol­ogy ser­vices are new de­vel­op­ments, con­sumers need to have suf­fi­cient fi­nan­cial knowl­edge and should not share per­sonal data such as user­names and pass­words to ac­cess on­line bank­ing ser­vices, said Mr Veerathai.

Con­sumers should also be aware of the im­por­tance of bank­ing no­ti­fi­ca­tions.

Lim­it­ing daily trans­fers of e-money is an­other risk-preven­tion mea­sure they should un­der­take, he said.

“Con­sumers need to un­der­stand risk-preven­tion mea­sures in or­der to pre­vent be­com­ing vic­tims of [on­line] theft as many peo­ple are in­volved with greater elec­tronic trans­ac­tions,” said Mr Veerathai.

Com­pen­sa­tion in cases in­volv­ing elec­tronic fraud would have to be based on iden­ti­fy­ing the per­son re­spon­si­ble, said Mr Veerathai.

Fi­nan­cial in­sti­tu­tions have to shoul­der the re­spon­si­bil­ity if a fraud­u­lent case stems from their loop­holes, but there have been cases where per­sonal data is ob­tained from a vic­tim’s ac­quain­tance, he said.

Thakorn Piya­pan, first ex­ec­u­tive vicepres­i­dent of Bank of Ayud­hya, said the bank plans to im­ple­ment some e-KYC tech­nolo­gies to ver­ify clients.

Anu­chit Anu­chi­tanukul, ex­ec­u­tive vice-pres­i­dent of Ki­at­nakin Bank, said au­then­ti­ca­tion is the key to ver­i­fy­ing cus­tomers rather than method­ol­ogy.

Veerathai: Up­grad­ing tech­nol­ogy es­sen­tial

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