Bank Fraud in Ukraine
Recently, one of my business partners here in Ukraine read his bank statement and discovered that he was the victim of fraud. Parties unknown had withdrawn money from his European bank account…in Egypt. Well, today it was my turn to be the victim.
What the experience of my partner and I have in common is this:
We, like other travelers and ex-pats, use our bank debit cards to make withdrawals at ATMs here in Odessa.
…and the money was withdrawn from each of our accounts in Egypt. In my case, the fraud occurred after I had made a small withdrawal from UKRSIBANK (a member of the Paribas Group) here in Odessa this past Sunday. I am still verifying if my business partner had made any withdrawals from the same bank ATM.
I am not an expert on fraud, but I would think that banks would take precautionary measures to prevent this sort of thing. Maybe it is an “inside job?” Would not surprise me. Bank fraud is prevalent throughout Ukraine. I was told this before I entered Ukraine. In fact, it is difficult to order goods and services online, and pay with a credit card.
Recently, a Ukrainian banker(s) stole a BILLION U.S. dollars!! This was part of the money given to Ukraine by the International Monetary Fund. While the amount illegally withdrawn from my account was only about $1,000., there are probably scores of others who may have had considerably more taken.
One can only hope that Ukrainian banks-especially those that are foreign subsidiaries of larger institutions-are monitored more carefully by their parent companies, and that this type of fraud is addressed. Ukraine has great potential as a tourist destination as well as a place to do business. It would be a shame if it became known as a nation of thieves.
Tags: Anton Olff, ATMs, bank fraud, bank withdrawals, credit cards, debit cards, Egypt, European Bank, ex-pat, HSBC, IMF, International Monetary Fund, MBS Ltd., Paribas Group, travelers, ukraine, UKRSIBANK
November 10th, 2009 at 4:08 am
There are ways to protect yourself from ATM fraud. First, use only ATMs from banks that are subsidiaries of high profile foreign banks such as UniCredit, Raiffheisen, Commerce (Forum), Swedbank, and others. Also, you can limit your withdrawals to certain amounts and alert your bank that you only withdrawal money while your in Ukraine from certain banks. Even better, only withdrawal money between certain times of the day so that your transactions are easily identified are yours and not the fraudsters. If everyone is vigilant, the problem will go away and the perpetrators will get caught. If you get burned, follow through with due diligence and make sure the local bank investigates your case. Eventually, banks will adjust their fraud algorithms and the problem will go away.
November 10th, 2009 at 4:16 am
Yes…an addition to this, I would only use ATMs that were inside malls or INSIDE banks. The one I used was on the street and can be accessed 24/7. A hacker(s)…assuming it was not an inside job…has more time and less exposure to do their “magic act” to steal customer info.
What is interesting for me, is that my instincts told me not to withdraw money from this particular ATM. Unfortunately, convenience won out and not good sense.
November 10th, 2009 at 4:30 am
I use my bank card a lot in Odessa, I had an issue recently where my card was cloned and somebody tried to use it in St Petersburg! Fortunately my bank spotted the attempted fraud and blocked the payment. I think the safest ATMs to use are those attached to actual banks, and the worst the free standing ones in shopping malls etc…..
November 10th, 2009 at 4:37 am
Guy…I agree. Nice to hear that your bank caught the fraud. I agree about the better ATMs use and I meant the ones inside malls that are attached to bank or wall unit out in the open.
FYI…the ATM I used at 22 Bunina is attached to the bank (half of the unit is inside the bank itself while the cash dispensing part is on the street).
November 10th, 2009 at 4:43 am
I am with Chase in the USA. They do not play. They refund within 24 hours. I have not had the withdrawal issue, but stolen once. Money was refunded the following. Happened in the States last time in from an ATM. It was refunded in the next bank-day cycle.
November 10th, 2009 at 2:32 pm
Here’s what’s going on….
http://www.wired.com/threatlevel/2009/11/rbs-worldpay/
November 23rd, 2009 at 5:36 am
I also travel a lot and have used my card in ukraine… As well as Bali, Egypt… Recently someone has withdrawn 400 euros in India and 350 in Egypt. My bank (credit agricole) gave me refound within 1 week. But it is a pain in the ass, having to loose half a day to do this and then wait 10 days for new cards…