Banks cash in on ATM court victory

Banks breathe a sigh of relief over ATM court case ruling

The Hanoi-based Hoan Kiem district court last week made a final decision announcing defeat for complainant Tran Thi Thanh Thuy, who asked the bank to provide VND30 million ($2,000) in compensation for losses in her account she blamed on a lack of security in its automatic teller machine (ATM) system.
Director of the Techcombank Card Centre Dinh Viet Cuong said that the court decision “has rescued the bank in retaining the confidence of thousands of customers using the ATM card services of the bank.”
As soon as the case was launched earlier this year, 18 other commercial banks supplying ATM card services to customers expressed serious concerns about rising doubts concerning a lack of security and safety in the current system.
Evidence presented before the court that led to Techcombank’s victory comprised a bill recording a history of ATM withdrawals from Thuy’s account, which are automatically saved on the bank’s computer system.
Furthermore, Thuy was accused of a lack of vigilance due to sharing her ATM card with a colleague, who withdrew money from her account without telling her.
“Specifically, $2,000 was legitimately withdrawn over a total of 16 transactions through two ATMs owned by Vietcombank and Techcombank,” Cuong said.
The court’s announcement concluded: “There is no legitimate proof requiring Techcombank to provide $2,000 in compensation for complainant Thuy.”
An official from the State Bank of Vietnam, who preferred to remain anonymous, said that the court’s decision has rescued banks currently providing the ATM card service for customers.
The service has been booming since 2000, with 1.2 million users and 19 commercial banks participating in a partnership, allowing card users to withdraw money from any ATM.
However, Cuong from Techcombank warned ATM cards holders to be more vigilant in their card management and in particular not to share their card with anyone else. “Furthermore, to avoid disclosing their access code, card owners should not use their name or date of birth for their pin number,” he said.
Techcombank last week announced the inauguration of its new card management and switching software system, a move that will provide improved security and safety for its customers, and help the bank expand its share of the card service market.
The Tranzware system, transferred by the Russia-based Compass Plus firm, is one of the world’s leading advanced card management programmes, providing strengthened security and safety for card users.
Head of Techcombank’s card payment system Dang Cong Hoan said the system would help the bank develop a more diverse range of card services including debit, credit and other products.
Furthermore, it will help provide favourable conditions for establishing direct links between Techcombank, Vietcombank, and other commercial banks currently offering card services, and world leading credit card issuing firms such as Visa and Mastercard.
In an attempt to counter an anticipated spike in card fraud, Techcombank included a highly sophisticated and complex system for detecting fraudulent operations, called the Tranzware Fraud Analyser, in the contract with Compass Plus.
Hoan said that Techcombank is applying modern technology in its banking services as part of its core strategy to build up confidence in its customers and expand market share.