More controls needed on white label ATMs: consumer group
The Consumers Association of Canada is calling for more regulations on white label bank machines.
Many white label ATMs are not affiliated with banks.
- MARKETPLACE: White Label ATMs
Kerton is reacting to a recent case in Kamloops, B.C. where a crime ring used the white label machines to steal people's card information.
RCMP say Russian organized crime is behind the scam. Sgt. Randy Brown says a gang based in Vancouver rigged up private ATMs to record the PIN and account numbers of the people withdrawing money.
Police have arrested one man, Dimitri Brezinev, and are looking for more suspects.
White-label machines were introduced in 1996, when the federal government lifted restrictions on who could provide ATM service. Some of the machines are owned by chartered banks.
White label machines are unregulated. They charge from $1 to $4 for a transaction. There are 13,000 independent machines in Canada out of 36,000 ATMs. The transaction fee is split with retailers who have the machines in their stores.
Kerton says controls are needed fast.
"We need, in the next week or two, to have some law passed so each person with access to all that private information is registered somewhere," suggest Kerton.
Quebec provincial police have expressed concerns white label ATMs could be used for money laundering because the machines are refilled by the operator.
Other consumer groups have called for a boycott of white label ATMs. Option Consommateurs in Quebec says the ATMs charge unfair fees.