The Kenya Bankers Association (KBA) has given banks until September 15 to switch from the magnetic stripe cards which are susceptible to fraud to secure chip and PIN cards.
The move is aimed at curbing the rising occurrences of ATM fraud through the use of magnetic stripe cards. These cards store user information and can have weaknesses exploited by ATM fraudsters.
“The critical thing about the magnetic stripe system, is that somebody needs to get the information stored in the magnetic stripe and then get access to your PIN number, so it is access to those two information that make your card vulnerable,” Habil Olaka, the chief operating officer of the KBA, said.
But before the banks switch to the new technology, Olaka cautions users to be careful with their PIN when withdrawing money from ATMs.
The current ATM fraud level is pegged at 0.1 per cent and always rises during the months of festivities. Last year there were rampant cases of ATM fraud during the Christmas period, with most banks trying to downplay the incidences.
The switch to the new technology will cost the banking industry approximately KSh2.6 billion (US$30 million).
