Standard Chartered suspends ‘Add Money’ from MFS apps

The Standard Chartered Bangladesh (SCB) yesterday suspended the "Add Money" option from mobile financial services (MFS) apps due to security concerns amid users on social media platforms reporting alleged fraud using the feature recently.

"Dear valued client, you may transfer funds to MFS bKash via the SC Mobile app at any time. Please note, the Add Money option from MFS apps is temporarily unavailable to ensure secure transactions," the foreign lender informed customers through text message.

The move comes as various users alleged that they were victims of fraud attacks which used the said option to transfer money from credit cards issued by the banks.

"It has come to our attention that cardholders of several banks are falling prey to fraudsters who are initiating fund transfer from MFS channels (e.g. bKash, Nagad) and transferring funds from credit card," Luthful Habib, head of Wealth and Retail Banking at the bank, told The Daily Star yesterday.

"A few of our cardholders were also impacted, and we have spoken to each one of them and assured them that Standard Chartered Bank systems, including our internet banking platforms, and security protocols have not been compromised in any way," he added.

The StanChart official continued that these reported fraud cases have been reported to regulators and law enforcement authorities for further investigation. "We will stand by our clients and support them if any additional information on the issue surfaces."

Meanwhile, he said, "The 'Add Money' feature originating from other platforms has been suspended temporarily, to ensure that all our customers' transactions are processed through the most secure and trusted channels. Our state of the art SC Mobile app and iBanking remain as the most secure encrypted platform to transfer funds."

"At Standard Chartered, safeguarding our customers' trust and financial security is our topmost priority.  Our customers can continue to transfer funds to their BKash wallet by using the SCMobile app or iBanking platforms," Habib added.

Over the last few days, several other StanChart users have reported to being victims of fraud attacks on Facebook and LinkedIn.

"A few days ago, 50,000 taka suddenly disappeared from my Standard Chartered Visa credit card. How? On August 26, at 7:43 pm, two OTP messages arrived on the phone. Immediately after that, [I received a] message that 50,000 taka [was] added to bKash from my card," one user wrote in a Facebook status on September 4.

"From the time the OTP arrived, this transaction took a maximum of 20 seconds or less. No one asked me for the OTP. My phone was in front of me, my computer in front of me. Just the OTP arrived, and then the money transfer was done," the user added.

Several other users made similar allegations.

Following the emergence of such allegations, StanChart alerted customers through text messages regarding attempted fraud attempts.

"Stay Alert! Be mindful of security measures, including your personal credentials, OTP, CVV, devices, and protection against malware, to safeguard your online transactions. Your caution is the best protection," yesterday's text message read. 

It went on to state that "the 2 Factor Authentication is in place to ensure security and validation for all online transactions."

"All the systems and processes of StanChart Bangladesh are functioning seamlessly to safeguard your finances. To ensure this, please keep your devices and passwords protected from any unknown software or malwares," it added.