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By Shirajiv Sirimane

"There is an alarming increase in locally issued credit card frauds," according to the Chairman Task Force, Security and Risk Management Sri Lanka Branch, Nalin Wijeratne.

Wijeratne told the 'Daily News' that most of these locally produced credit cards are used in Thailand, Singapore and Malaysia. He said that 'the skimmers'(Persons involved in credit card frauds) in most instances use special devices to monitor transactions done by genuine credit card holders and copy the data which is being transmitted during transactions.

Wijeratne said that later these skimmers make use of this data and produce a duplicate card of the original and give it to some person to make purchases overseas.

The Senior Manager said that only when the monthly statement is issued to the customer that this fraud comes to light since on many occasions the card holder had not visited that country.

"According to international credit card regulations in most cases the issuer which is a local bank has to accept responsibility of the card transactions and hence the bank has to pay for this transaction in most cases."

Wijeratne said that what happens locally is that in most instances cases the merchant too connives with the skimmers to share profits. "The best way out of this problem is to appoint merchants with a good track record."

He said that Visa and Master Card international officers have advised the local card issuers in this regard and many counter protection moves have been adopted. "We have also conducted a series of workshops with the Criminal Investigation Department (CID) and now the CID too has stepped up their vigilance.

He said that the CID has also accepted a proposal to set up a special unit to curb this area of crime.

"This workshop was held at CID Training School and CID Director Tyrell Gunatillake who was the Chief Guest promised to set up a unit in this regard."

Wijeratne said that during the last three months international credit card frauds have dropped by nearly 80%. "This is a result of tight vigilance and the arrest of a gang with sophisticated IT equipment."

He said that international advice to curb this area too have been strictly followed. Credit cards were introduced to Sri Lanka in the early 1990's. Today all state and private banks issue credit cards and there are over 360,000 cards issued in the country.

Consultant to the Financial Sector Reforms Program Dr. Wickrema Weerasooria in a recent interview with the 'Daily News' said that the Government will shortly introduce new legislation to combat credit card frauds and legalise transactions in relation to electronic banking and internet. These laws are also a part of the ongoing financial reforms program.

The attention of the Government has been drawn to the drawing up of an Electronic Transactions Act, Electronic Funds Transfer Code and the requisite amendment to the Criminal Law to cover credit card frauds, he said.

He said that the present Penal Code was empowered to nab defaulters of forged currency notes but credit cards racketeers were getting away with impunity due to the absence of the requisite laws.

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