Bank customers wary of financial scams and fraud may now “lock” their ATM, prepaid, debit or credit cards using LockByMobile, the world’s first mobile-based, anti-fraud security solution developed by Smart e-Money, Inc. (SMI), the digital financial services arm of Smart Communications, Inc.
Banks who have initially signed up for the service are Land Bank of the Philippines (LBP) and Rizal Commercial Banking Corporation (RCBC), who have 14.5-million debit and credit cardholders combined.
LockByMobile was developed in response to the mounting number of fraud cases involving ATM (automated teller machine) and credit card transactions which resulted to approximately P220-million in fraud losses in the Philippines last year. With a few taps on a smartphone, LockByMobile can enable any cardholder to block and unblock the use of the funds in his card.
Customers of LBP and RCBC can download the anti-fraud mobile application via Google Play or Apple Store. This will be made available to card issuers worldwide using smartphones provided by any mobile network operator.
“We expect more banks to sign up,” said Leo Villanueva, SMI’s Vice President and Head of Innovation, Digital Ecosystem and Alliances Department, adding that “the new technology will empower consumers to take full control of their accounts.”
ATM and credit card fraudulent practices are rampant all over the world and it is now at its alarming stage. Globally, fraud losses amounted to over $14-billion in 2013. In the Philippines, the Bangko Sentral ng Pilipinas (BSP) reported that over a thousand incidents of ATM fraud took place last year involving approximately P220-million, up from the P175-million in total losses in scams in 2012.
These fraudulent practices that have victimized cardholders include cash and card trapping, shoulder surfing, use of information from carelessly discarded ATM receipts, card skimming, and cloned cards.
With LockByMobile, customers will be provided with defenses against fraud and improved service.
Benjamin Castillo, President of Megalink, said that the SMI’s network-agnostic innovation engages customers to proactively fight fraud and empowers them in the protection of their accounts.
LockByMobile allows clients to “lock” and “unlock” their accounts at different levels – by account, by channel, or by transaction settings.
Locking by transaction is a relevant protection when the user is not using the card like when traveling overseas. In this setting, a user can set an amount threshold; limit the types of merchants where the card can be used; and limit transactions to certain countries and currencies.
Channel locking allows the user to specifically lock access to an ATM withdrawal, point-of-sale terminal, online purchase, mobile banking, or money transfer.
Through account setting, the user can choose to specify which particular card account enrolled in the mobile app should be locked or unlocked.
Featuring fraud alert mechanisms which are preventive rather than reactive, LockByMobile ensures that a transaction will not push through unless it is within the security setting set by the cardholder.
In cases where a card has been skimmed or used by an unauthorized individual, the cardholder will be alerted immediately through his mobile phone and the attempted transaction will not be completed.
LockByMobile is also seen to further push the adoption of electronic payments in a country where majority of purchases and transactions are still done in cash.
