The Bank of Maldives (BML)’s move to ensure a cardholder is physically abroad before allowing overseas card transactions is an important measure taken when financial crimes are on the rise, the bank has said.
BML is working with Maldives Immigration to verify whether a customer is outside the country when using debit or credit cards abroad. The measure follows reports of fraudulent use of cards, including cloned cards for overseas transactions without the owner’s knowledge.
The bank said an automated verification system will check travel status before approving POS and ATM transactions outside the Maldives. Unauthorised parties cannot use a customer’s card abroad while the card owner remains in the Maldives, the bank explained. However, this does not affect online or e-commerce transactions.
BML said it will not share customer information, although it has an agreement with Immigration to facilitate the verification process. The bank said cardholders already agree in the terms and conditions to allow verification checks for card use.
The change is intended to improve fraud protection and comply with international payment security standards, and strengthen trust in card usage.