ATM fraud in Oyo: Customers groan, EFCC helpless

Automatic Teller Machine (ATM) fraud in Oyo, Oyo State has become so grave and worrisome that banks’ obvious helplessness continues to fuel panic among customers.
There has been an upsurge in the number of people who have fallen victims of ATM fraud, but as strange as some of these cases may appear, the overt cluelessness being displayed by some of the banks, whose staff are seen by many as prime suspects in this development, is more confounding.
One of the recent victims of ATM scam is Alhaji Wasiu Alaka, a customer with Zenith Bank Plc, Oyo banch, from whose account about N1.5 million was stolen via ATM withdrawals while her ATM card was right with him at home.
Alaka’s money in his credit balance as at June 5, 2016 was N1.756, 048.56.
Out of this amount, N1,500,000 was withdrawn in the
following manner : N190,000 through ATM Card, N940,000 by way of transfer through POS, and another N346,0000 through the same means of transfer by another POS.
Alaka said it was surprising that the bank failed and refused to send any information through an alert, which is the usual practice.
“As at the time the money was purportedly withdrawn through ATM Card, I was in the comfort of my bedroom and in possession of the ATM Card to that account. That day was Sunday. It was the next day when one Alarape Moshood paid a sum of N70,000 into my account that I received
an alert from the bank that money had been fraudulently withdrawn from my account.”
He explained that the bank Manager was promptly contacted with evidence of the ATM Alert on mobile phone, as well as statement of account.
According to him, he was later issued with a form to fill, after which nothing had been done by the bank since then.
Said he: “after futile efforts to get response from the bank which lasted barely two months, I contacted my lawyer who formally lodged complaints to the offices of the Director, Legal Services, Zenith Bank Plc, national head office in Lagos; Customers’ Protection Unit, Central Bank of Nigeria; Commissioner, Public Complaints Commission, Oyo State; and the Economic and Financial Crimes Commission (EFCC), Ibadan office through couriers.
None of agencies had responded to the complaints”.
Alaka further hinted that similar complaint was personally lodged at the Criminal Investigation Department of the Oyo state Police Command located at Iyaganku, Ibadan, the state capital, but was treated with kid gloves.
“ I later proceeded to the Special Fraud Unit of the Nigeria Police in Lagos, where a superior police officer gave me a note to the then Oyo State Police Commissioner, Leye Oyebade, who immediately directed the Anti-Kidnapping Unit to handle the matter. They actually took up the matter and are still investigating. What is more disturbing is the
poor public relationship of officials of the EFCC in Ibadan. They refused to collect the official complaint brought before them.”
The excuse given, Alaka informed, was that the amount fraudulently withdrawn was too small to be handled by the anti-graft agency, in view of its new arrival in the state and workloads across five states in the South-West.
“When this statement is emanating from an anti-graft agency, where then lies the hope of numerous customers who had fallen victims of their banks’ breach of fiduciary duty? Are they established for corporate establishments and government institutions alone?”
Alaka further explained that in spite of his cordial relationship with the bank officials, none of them called him to show their concern on the mater.
In his comment, an ICT expert, Mr. Muyiwa Alamu, said: “Instances abound in banks when someone received debit alerts right in the presence of a banker in the banking hall with his ATM card right there with him. When it happens like that, you don’t need to look far off because the perpetrators are right in the bank. Those in the banks have the code; they are the ones who give out the ATM cards. They may
have cloned the cards.”
He further submitted that banks’ frauds perpetrated via the ATM may be more complex and may have gone far beyond the cloning of ATM cards.
According to him, criminals may attach devices to ATM machines to record the account data stored on the magnetic stripe on the back of
the card.
This practice, according to him, is known as skimming.
“The card’s PIN can be spied with a secret camera or a fake number pad overlay. Unfortunately, the victim of such scam may have to bear the brunt because it is always difficult to prove to the banks that you are not liable. Most banks would like you to believe they always refund stolen money. But the reality is that a bank can easily deny a refund based on flimsy reasoning that leaves consumers with little recourse other than going to court. The banks will deny that their systems suffer from any weaknesses and place the blame squarely on the customer,” he pointed out.
When contacted, Head of Operation, Zenith Bank, Oyo branch, Mr. Sunkanmi Akintimehin, absolved the bank of any fault.
Akintimehin insisted that there was no way money could be transferred through the POS without the use of ATM card, adding that the fraudsters might be from within.
“ The issue of cloning is inadmissible here. The fraud was perpetrated from a neighbouring bank. The matter was reported to the police and they came for investigation. We wrote our report and submitted it to the police.
“The issue is that the account into which the money was sent belongs to someone. Fine. Let the account be traced, so that the fraudsters can be unmasked. It is simple. Alhaji Alaka is our very good customer, but those close to him must be closely examined, because his ATM card might have been taken for fraudulent purpose, while the owner might be
unconscious of it at that point in time”.
On the refusal of the bank’s legal department to respond to a written petition, Akintimehin said the corporate head office had responded, saying the bank’s branch was absolved of any complicity.
At the UBA branch located at Durbar area where the ATM fraud was perpetrated, the manager in charge of operations said the bank was not culpable.
At the EFCC Zonal office and the Pubic Complaints Commission both located in Ibadan, the state capital, none of their competent officials was available for comment, despite repeated visits.
At the state police headquarters, Eleiyele, Ibadan, our correspondent reliably learnt from two superior officers that the matter is being investigated.
However, a letter from the office of CBN’s Director
of Customers Protection Unit in Abuja was received by our
correspondent.
The letter with reference number CPD/CMD/CON/ZBN/01267, dated 30th of
August, 2016 and signed by Mr. B.E. Lartey for the Director, CBN Protection Unit was addressed to Alaka’s lawyer, Barrister Olawale Omoloye.
The letter reads in parts; “We write to inform you that we are unable to accede to your requests to compel the Zenith Bank Plc to refund the money alleged to have fraudulently withdrawn from the account”.
“Our decision is predicated on the fact that the alleged fraudulent transactions were consummated with your client’s original debit card and authenticated by his Pin which is only known to him.”