Commonwealth Bank cuts card spending limits to halt skimmers

Some account-holders received an SMS message from the bank yesterday saying their card may have been compromised, according to a message seen by Bloomberg News.

Affected customers have had their daily spending limit cut to A$200 (US$180) until they change their pin, spokeswoman Nichole Ismay said in a phone interview today. The move is a “precautionary measure” and doesn't mean the customers who received the messages have been targeted by skimmers, she said, declining to disclose how many customers were affected by the reduced limits.

Police estimate that A$50 million (US$45 million) has been stolen by skimmers in Australia in the last 12 months, the Sydney Morning Herald reported Jan. 20. Skimmers modify Eftpos terminals or cash machines so they can acquire a customer's card details and pin number, then use the information to withdraw money from their accounts.

New South Wales police are working with interstate and international counterparts to investigate skimming offences, according to a Jan. 20 press release. Six people have been arrested in relation to these matters so far, the release stated. A police spokesman declined to comment further today.

Customers are not liable for unauthorized transactions on their accounts when they become victims of skimming crimes, the Australian Bankers' Association Inc. said in a Jan. 20 statement. “The bank wears the loss,” Chief Executive Officer David Bell said in the statement.

Westpac Banking Corp. blocked as many as 11,000 cards in a 10-day period to try to halt card skimming, the Daily Telegraph newspaper reported Jan. 22.

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