ATM heist: Pune firm credit card processor for RakBank?
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ATM heist: Pune firm credit card processor for RakBank?

Last Updated: Sunday, May 12, 2013, 00:02
 
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ATM heist: Pune firm credit card processor for RakBank?
Mumbai: Pune-based ElectraCard Services is the credit card processing firm whose security was compromised in USD 45-million global ATM heist, according to sources.

When contacted an ElectraCard official said the company is aware of the development, but the official refused to give more details. ElectraCard Chief Executive Ramesh Mengawade and the Business Development Head Sharad Somani were not available for comments.

ElectraCard processes the prepaid travel cards for RakBank, one of two West Asian banks named by US prosecutors on Thursday as victims of the heist.

Meanwhile, the name of Infosys has also been dragged into the matter as RakBank uses Finacle services. When contacted an Infosys official denied anything to do with the development.

"We would like to point out that Infosys Finacle does not have any credit card processing solutions or products and hence no link to the incident in question (with RakBank)," the Infosys official said.
He also that Infosys won the RakBank contract only in January this year.

An international criminal gang made two coordinated hits on ATMs around the world in matter of hours recently, withdrawing USD 5 million on December 21 last year and another USD 40 million on February 19 this year.

According to banks and investigators, the gang made large cash withdrawals after hacking into an Indian and US credit card processing companies to raise the balances and withdrawal limits on MasterCard prepaid debit cards.

Media reports quoting RakBank said two of its prepaid MasterCard cards were launched with the support of ElectraCard. MasterCard holds over 12 percent stake in ElectraCard since 2010.
MasterCard could not be contacted for comments.

According to reports, the global gang has operatives in 27 countries who can access thousands of
ATMs within hours and withdraw money using fraudulent prepaid debit cards.

According to the findings, most of the people lost money are those from their prepaid cards as they have fewer controls on them than on regular credit and debit cards.

The UAE-based lender RakBank said the fraud against it took place late last year and resulted in a loss of around USD 4.7 million.

This is not the first time that such plastic money fraud happens. In 2008, a group of men from Estonia, Russia and Moldova hacked into the Royal Bank of Scotland's credit card processor and withdrew USD9 million in more than 2,100 coordinated cash machine transactions worldwide over less than 12 hours.

PTI



First Published: Sunday, May 12, 2013, 00:02


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