BB orders probe into SCB credit card scam

Bangladesh Bank has ordered an immediate probe into alleged credit card fraud at Standard Chartered Bank (SCB) Bangladesh, following reports of unauthorised transactions.

The central bank is treating the matter with high priority through which a fraud group allegedly siphoned money from customer credit cards, sources in the banking sector said.

A fraud group reportedly stole around Tk 27 lakh from 54 SCB customers in the last week of August, prompting the bank to temporarily suspend credit card transfers to MFS platforms like bKash and Nagad.

Victims reported that without their knowledge or any transaction, Tk 50,000 was transferred from their cards to bKash and Nagad accounts in each instance.  The money was then quickly withdrawn by the fraud group, and the MFS accounts were immediately closed.

Bangladesh Bank officials said that the money sent to the fraudulent bKash and Nagad accounts was cashed out within minutes, and the accounts were subsequently shut down. This suggests an experienced fraud group is behind the incident.

In messages sent to customers, the bank stated that the "Add Money" option to MFS apps had been temporarily suspended for security purposes. The bank also reported the matter to Bangladesh Bank and law enforcement agencies. Bangladesh Bank has already initiated an investigation.

Several victims took to social media to share their experiences. A customer named Hasin Haider wrote that Tk 50,000 was debited from his card and sent to a bKash account without any reason. Despite receiving an OTP on his phone, he claimed he did not share it with anyone. The transfer took only a few seconds, leading him to believe it was a security flaw on the bank's end.

Another customer, Sadia Sharmin Brishti, said that after using her card for seven years, this was the first time she had been a victim of fraud, with Tk50,000 also being debited from her account.

SCB officials said that after receiving multiple complaints, their local and global technology teams conducted a security review.

They, however, found no security flaws in the bank's system. They emphasized that since the transfers were made via MFS platforms, those institutions should bear responsibility for clarifying the matter, reports UNB.