MRTPC asked Citibank to improve ATM securityMRTPC asked Citibank to check ATM security
Apnaloan.com Research Bureau
20 Feb 2008
The Monopolies and Restrictive Trade Practices Commission (MRTPC) has asked Citibank to check security loopholes in its electronic transaction platforms such as ATMs. The order was resulted when a case arose where a customer was billed for cash withdrawal of Rs 16000 on his credit card when he had not done it.
The bank's argument was that the customer had withdrawn money at an ATM on his credit card. The customer, however, produced an unopened envelope containing the credit card cash withdrawal PIN. Citibank said that if the customer had used any of its own ATMs, the security cameras would have captured anything unusual. The MRTPC rejected that argument saying that if a customer was given the facility to withdraw cash at any ATM, it was Citibank's responsibility to ensure the security of such transactions. It held the bank responsible for the fault and directed the bank to hire an expert to resolve the issue.
MRTPC is further expected to start an inquiry of unfair trade practices against Citibank. The body has directed Citibank to file a compliance report within eight weeks. The fair practices body indicated that the bank could not hold the customer responsible for the safeguard of any PIN before it was actually in the customer's possession. As matters stand today, agreements between the bank and the customer hold the customer responsible for the security of transactions on a credit card once the bank has completed the act of dispatching the ATM PIN to the customer.