Kenya has introduced rules to compel banks and card networks to improve their security standards to check the rise in ATM fraud in the East African country.
Fraud in the country’s banking sector (including card and ATM fraud) tripled in 2010, to 3 billion shillings (US$33.7 million or 25.8 million euros) from 1 billion shillings a year earlier. Commercial banks operate 2,183 ATMs in Kenya, according to Central Bank of Kenya data.
Under new rules the central bank announced earlier this month and that take effect next year at a date not yet announced, all banks must install antivirus software. Banks also must update their on-site security storage facilities and secure their networks to rules set by the previously optional Payment Card Industry Data Security Standard
Four major credit card companies, including Visa Inc., MasterCard Worldwide, Discover Financial Services and American Express Co., created the PCI standard jointly in 2004. The Payment Card Industry Security Standards Council oversees the standard and compliance.
In addition, banks must open their ATM networks to external security assessors and present reports to the central bank on demand and at a fixed schedule along with their other audit reports.
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