Mehmat Gulen, a Turkish national, was found to have stolen data using card skimmer device and clone ATM cards to withdraw money from various banks in Nepal, India and Thailand. In Nepal, Gulen had used fake Master Card, Visa debit and credit cards to sweep away Rs2.6 million and $5,000 from ATM booths of Apex Development, Himalayan and Standard Chartered banks.

A team from Nepal Police’s Central Investigation Bureau arrested Gulen from Durbarmarg-based Hotel Woodland where he had checked-in on November 15. Police said Gulen, who arrived in Nepal on November 13, had visited Thailand, Qatar and India.

He is learnt to have stolen numerous data and pin numbers from cards used at petrol pumps and shopping centres. He would then use computer software to clone ATM cards with the help of a magnetic strip reader/writer to swindle millions from various accounts.

Deputy Superintendent of Police (DSP) Bhim Dahal of CIB said Gulen, who had acquired over 100 such vital data, was planning to withdraw Rs5 million and flee the country. “He is a spendthrift. He has bought expensive cameras and mobile phones, and was travelling first class to various countries,” said DSP Dahal.

Tipped off by the banks of suspicious transactions in Kathmandu, a police team kept tap on Gulen’s activities which eventually led to his arrest. According to police, sophisticated hackers such as Gulen attach devices like hidden cameras or fake ATM keypad to the ATM machines to sim the pin number. They would then use the data to clone the cards. Police have seized a laptop, mini magnetic strip reader/writer and numerous ATM cards and mileage cards of Qatar National Bank, Shell Club Smart, PTT Kart, Miles and Smiles of Qatar Airlines, among others.

Superintendent of Police Pitamber Adhikari, spokesperson for the CIB, said Gulen had been withdrawing small amounts at a time to avoid any suspicion of illegal transactions. “These people would initially withdraw small amounts to gauge the extent of the account holder’s available balance or line of credit and to detect the presence of security alert levels,” said Adhikari.  

A year ago, the CIB had arrested three Nepalis for stealing money using similar methods. One of the accused was arrested from Saleways Department Store in Lalitpur while using a bogus ATM card on its point of sale machine.

Since hackers are using sophisticated tools, SP Adhikari said, it is high time that the banks upgraded their system to ensure safe transactions. “If you think your card has been compromised, call your bank. Then call police.”