Thursday, June 9, 2011

BI improved credit card security

Bank Indonesia has called on banks to improve their customer service in their credit-card business and provide more information to help clients avoid fraud.

The lack of information for the public, particularly regarding how to maintain card security, was a central cause of credit-card fraud.

Bank Indonesia is drafting new regulations on credit cards that will require banks to conduct periodic evaluations of credit-card holders, including verifying their personal data. It will also require banks to provide transaction alerts for their customers. It will set a minimum age and income for card holders, the maximum number of cards a person can hold and other new rules.

Central bank data showed identity theft was the top avenue to credit-card fraud. According to BI, there were 1,204 cases of identity theft through April this year that resulted in a total loss of IDR5.963 billion.

In the first four months this year, there were 2,741 overall credit-card fraud cases with total losses of IDR11.8 billion. Last year, there were 18,122 cases with total losses of IDR55.2 billion.

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