Hong Kong to kick off chip-based technology for ATMs

Card replacement will be by 2014-2015.

According to a government release, the banking industry will adopt chip-based technology to further strengthen the security of Hong Kong's automated teller machines, the Monetary Authority announced today.

Authorised institutions offering ATM services are expected to complete the upgrading of their ATM terminals by the end of February, to support chip-based authentication.

The institutions are also expected to complete the card replacement process in phases between 2014 and 2015.

As an additional security step, the overseas cash withdrawal capability for all ATM cards, including debit cards and credit cards, issued by authorised institutions in Hong Kong, will be pre-set as "deactivated" from March 1.

The move is to prevent fraudsters from withdrawing cash from a cardholder's account from ATMs outside Hong Kong using counterfeit magnetic-stripe cards with data obtained from card skimming.

Cardholders will be reminded to activate their overseas cash withdrawal capability before travelling. They can specify an expiry date for the activation period and set an overseas ATM cash withdrawal limit.

Monetary Authority Deputy Chief Executive Arthur Yuen said: "Chip-based ATM cards offer greater security and protection to the sensitive data stored within the chip and therefore can further enhance the security of the current ATM platform."