Comfort and ease offered by bank issuing credit card are sometimes misused by certain parties or customers themselves.
Credit card bearer must be aware to the fraud of leaking the credit card. It leads with customers disadvantages and created stuck credit to the bank if its customers fail to pay their obligation. Last February, Head Office of Indonesia Police Department succeeded to wrap up a syndicate of credit card forger architected by a Malaysian.
The police confiscated around 7,000 forged credit cards. Amount of 6,900 of the total were Indonesian bearers and utilized in some transactions. Also, 7.2 millions of credit cards were confiscated, of which 2.2 millions were belonged to Indonesians. Chief of Public Relation of Indonesian Police Department, General Inspector Abubakar Nataprawira, confirmed that the loss on credit card falsifying reached IDR 30 trillions, the precise number was still calculated though. The process required long time due to the complaints from credit card bearers on their losses. “If the bearers complain, the precise number then is calculated,” he said.
Responding to the issue, Indonesia Credit Card Issuer Association (ICCIA) accentuated on the losses of credit card misuses during the year of 2007 reached IDR 30 billions only, not IDR 30 trillions as launched by the police. “The number has been gathered throughout existing credit card issued in Indonesia,” commented Chief Executive of ICCIA, Dodit W Probojakti, as confirmed by SINDO.
Dodit explained that the total transaction during the year of 2007 arrived at 126 millions equal to 246 transactions per minute. The transaction value reached IDR 72 trillions, while, the total outstanding balance out of the total numbers of circulated credit cards in Indonesia by December 2007 was IDR 21 trillions approximately. “Out the total transaction, around IDR 35-40 billions were misused,” said he.
Meanwhile, Director of Accountancy and Payment System of Indonesia Bank, SWD Murniastuti confirmed that, in order to anticipate the fraud on credit card misuse, Indonesia Bank, since the year of 2005 through SE No 7/60/DASP, has obliged to all credit cards issued in Indonesia to utilize chip technology for security. The policy must be implemented by the end of this year. Indonesia Bank also coordinated with police institution, attorneys, credit card association, and credit card principals as well regarding on the case on early 2008 where the police succeeded to catch the fraud.
“Indonesia Bank persistently conducts security efforts rapidly along with ICCIA and credit card principals through encouraging the issuer to block and alter all cards with data stolen. Recently, all acquiring banks have been performed security audit by independent auditor appointed by card principals,” explained she.
She added that, for management of NPL credit cards, Indonesia Bank is still in cooperation with ICCIA to re-define the standard of NPL credit cards. It is due to its customs that the measurement for credit card collectibility is still based on general requirements for common credits. Instead, the characteristics and businesses done in credit cards are dissimilar to those of common credits. Moreover, her party is still studying on ideal payment and minimum income for credit card bearer.
“This policy is utilized to early selection to candidates of credit card bearer with an expectation of decreasing NPL rate. Indonesia Bank also requires the card issuers to provide intensive reports on the progress of decreasing NPL rate,” said Murniastuti.
She explained that the figure of NPL credit card by May 2008 reached IDR 3 trillions, equal to 11.9% of total balance of credit card. Compared to consumptive credit value per May 2008, the amount of NPL reached 0.28%.
Board of Executive Indonesia Credit Card Association, Budy Setiawan said that the perpetrators of credit card taping were succeeding in taping around 2.2 millions data on credit cards. Out of 2.2 millions, 9,000 cards were already forged. However, the value will be possibly increased.
Budy admitted that out of 21 card issuers of ICCA members were the victims of taping committed by Malaysian syndicate. The total loss was unable to report for in calculation progress. Budy explained the mode of taping; all data was obtained by the fraud through a device named Electronic Data Captured.
Indonesian Version:
Waspada Pembobolan Kartu Kredit. Seputar Indonesia. 14 July 2008
Filed under: Economy | Tagged: credit card
