Credit card fraud rampant every weekend

Evi Mariani, The Jakarta Post, Jakarta

Clubbing and shopping, mostly on weekends, has unpleasant consequences for many Jakartans as many of them become the victims of credit card fraud, and file reports of their misfortunes with the Jakarta Police.

"Every weekend we receive the same complaints of credit card fraud, it's a certainty," said Adj. Sr. Comr. Dharma Pongrekun, the head of the Jakarta Police Fiscal, Monetary and Foreign Exchange Division, over the weekend.

Data from the Indonesian Credit Card Association (AKKI) shows that credit card fraud cases caused around Rp 60 billion (US$6.98 million) in material losses nationwide last year. The figure in 2002 was some Rp 40 billion, meaning that the number of cases has increased by 50 percent.

In 2003, the division completed the dossiers of four suspects in credit card fraud cases. From the suspects, the police confiscated 11 fake cards ostensibly issued by Bank Danamon, Diners Club, Bank Internasional Indonesia (BII), Lippobank, HSBC and Standard Chartered Bank. But the division did not reveal the total losses suffered by the four suspects' victims.

Police said that the suspects, known as joki, were those who hit shops with fake cards bearing the original card owner's names.

"The syndicates usually work using a "cell system", in which the joki do not know anybody except the one who gave them the fake cards," Dharma said.

He added that a long network lay behind the fake card users, so that arresting the card producers was difficult.

In late February, the police arrested Noto Soehandojo for allegedly paying for cans of powdered milk worth Rp 712,000 with a fake credit card in a supermarket. In early March, the police apprehended Michael Samuel Wijaya over the same allegation as he was about to pay Rp 18.02 million for advertising in Kompas daily.

"Both suspects are only low-level accomplices. We are still hunting for their superiors in the syndicate," said Dharma.

Besides fake credit cards, he added, the police also received many complaints of theft from bank accounts via Internet banking services.

"The recent two reports of such theft involved a total loss of Rp 250 million. We are still probing the criminals' method of stealing the Personal Identification Number's (PIN) of the victims.

"Some criminals also use fake Authorized Teller Machine (ATM) cards," he said. "We are investigating to determine whether they use conventional methods to obtain the PINs or high-technology," he said.

According to Dharma, some criminals spent most of their time at open ATMs, which are not protected by glass booths. They furtively peek at people who enter their PIN codes when withdrawing money.

"They can also apply high technology in stealing one's PIN code. To unravel such methods, we are collaborating with computer experts at several banks," he said.

The fiscal, monetary and foreign exchange division was first established in March 2003. It has handled cases violating 10 laws that relate to, among other things: tax, banking, money laundering and the stock market. It also handles violations of the Criminal Code.

"There are 42 investigators in the division. They have been versed in related laws at the National Police training center for two months," Dharma said.

However, he said, his division had yet to receive forwarded cases of violations of the recently passed money laundering law.

"The Financial Transactions and Report Analysis Center (PPTAK) has always forwarded their findings to the National Police Headquarters although we (Jakarta Police) are ready to handle such cases," he said.

I-box Jakarta Police Fiscal, Monetary and Foreign Exchange Division handles cases violating: 1. Law No. 10/1998 on banking 2. Law No. 6/1993 on tax 3. Law No. 2/1992 on insurance 4. Law No. 8/1985 on stock market 5. Law No. 32/1997 on commodity exchange 6. Law No. 25/2003 on money laundering 7. Law No. 22/1999 on the foreign exchange system 8. Law No. 5/1999 on anti-monopoly and fair competition 9. Law No. 1/1995 on limited liability company 10. Law No. 16/2001 on foundations

The division also handles offenses of Criminal Code: 1. Articles 244 and 245 on counterfeit banknotes 2. Articles 263, 264, 373, 374, 378 on insurance 3. Articles 263, 266 on counterfeit documents including fraudulent credit cards 4. Articles 263, 266 and 378 on bankruptcy and bad loans 5. Articles 263, 266 and 374 on insider trading

Source: Jakarta Police