UAE Central Bank launches ATM fraud probe

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ATM PROBE: The UAE Central Bank has launched its own investigation into the fraud that hit many banks in the country. (Getty Images - for illustrative purposes only)

The Central Bank of the UAE has launched an investigation into ATM fraud following a spate of incidents across the country, financial sources have revealed.

On September 25, the Central Bank summoned officials from a number of banks to a meeting in which they were informed of the investigation, according to UAE daily The National.

Officials at the Central Bank confirmed the meeting and the investigation, but would not elaborate.

Thousands of customers were affected by a regional wave of ATM fraud in September. Customers were told to change their pin numbers for their ATM cards in a text message.

Officials at several banks have said they have identified a breach at a UAE-based bank as the source of the fraud, which allowed unauthorised people to obtain sensitive data such as pin numbers and information from magnetic strips on the back of the cards.

The data were then used to produce counterfeit cards to make illegal transactions in dozens of countries.

Officials familiar with last month’s central bank meeting said several banks openly accused the bank that is suspected of being breached. Officials from the bank in question were said to have denied the accusation.

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