In The Magical ATM Card and SMS Message in Thailand we talked about booking flights and securely paying using a SMS PayCode and ATM transfer, avoiding the possibility of on-line credit card fraud; and in Keyloggers: Why Banks Need Two-Factor Authentication I described how KBank uses SMS-based one-time-passwords (OTP) to authenticate transactions.   

In addition to the above services, KBank offers a service that permits users to receive an SMS message that details any change in account balance and/or point-of-sale (POS) transaction with your debit card.   I really like this service and the feeling of security knowing when, where and by how much my balance changes or my debit card is used in a transaction.    The KBank POS SMS notification is so fast that when I present my card to a merchant I normally receive an SMS message detailing the transaction before the merchant returns for my signature.  (There is an unfortunate lag in the balance change notification that can run minutes to hours behind real-time, but the POS VISA debit card notification is real-time).

As the story goes,  I should have been using my KBank card and account a few weeks ago and not my US-based VISA debit dard.  Why?

My US-based VISA debit card was cloned sometime on or before August 8th.   I am really careful with this card, so I was surprised the magnetic strip was cloned at a POS merchant.   The fraudster made 7 fraudulent transactions beginning on August 8th for a total of around $2500 USD, mostly on August 11th, before I discovered the fraudulent transactions viewing my account on-line.

This would not have happened with KBank SMS-based transaction notification services.

The first transaction with my cloned VISA debit card was less than $50 USD (I assume the fraudster was “testing the water”).   If I was using my KBank card, I would have received an immediate SMS message detailing a POS transaction in Bangkok when I was physically far away from Bangkok in Chiang Mai.   I could have immediately called the bank (or logged in) and blocked the debit card, limiting potential losses to the bank or the merchant to one fraudulent transaction, not seven.

In addition, KBank offers what they call a Web-Shopping VISA card, where you can go into your on-line account (verified by SMS OTP as mentioned) and request a VISA debit card number (with expiration date, CCV etc).   You set the limit from 0 to 500,000 THB (Thai Baht) per day; and you can login to your account and change this anytime (authenticating your transaction with another SMS-based OTP). You can also block or cancel this number anytime and apply for another one.

I am amazed that in Thailand I receive much better anti-fraud prevention and detection services than with banks in the US.   I know of no bank or brokerage in the US that offers the same quality of service and security as KBank in Thailand.