Chile banks told to provide ATM software, chip card plans

Chile's banking watchdog Sbif has ordered local lenders to provide details of their plans to modernize their payment cards and ATMs.

The news comes after Sbif chief Mario Farren (pictured) ordered lenders to tighten security in the wake of a cyberattack on local player Banco de Chile and the leaking of a file containing details of around 14,000 credit cards from local and international issuers.

Sbif has ordered banks to "adopt concrete measures" related to cybersecurity, including the updating of cash machine operating systems and the switching over to cards that incorporate chip technology.

Santander has already announced such plans.

In related news, Farren also met with managers of non-bank companies that issue credit cards to discuss cybersecurity, an Sbif statement said. He called on these players to implement the necessary measures to mitigate operational risk associated with this type of crime.

Last month's leak of card details was traced back to an international retailer, Farren said, warning of the risk of reputational damage associated with leaks and the security implications of the current shift toward online sales.

On the theft of the card details, KPMG Chile partner Fernando Laurito said financial services players today face new and emerging risks.

"The reality is that the digital transformation of payment methods is forcing us to rethink the risk model and determine where new risks lie," Laurito said. "Members of the financial ecosystem are digitalizing services, transactions and channels, and therefore must be aware that they are exposed and employ new security measures. It is down to all players to educate cardholders and be aware that the payment channels are changing."

He added that, in the area of cybersecurity, traditional players within the financial system must adapt and become more agile and that both cardholders and the likes of issuers much share responsibility.

About 30% of cards in circulation in Chile employ chip technology, Sbif said.