Beware of ‘sangla-ATM’ schemes, warns BSP
MANILA, Philippines— The Bangko Sentral ng Pilipinas (BSP) has urged automated teller machine (ATM) cardholders to reject “sangla-ATM” schemes that demand ATM cards and personal identification numbers (PINs) as collateral for loans.
“This scheme may lead to financial troubles for cardholders as it may be difficult for them to monitor withdrawals made by people to whom the ATM card and PIN were given. Creditors may also withdraw amounts higher than the cardholders’ debt,” said BSP in a Saturday advisory.
The nation’s central bank also advised borrowers to stay properly informed about loan terms and conditions to “protect themselves against unreasonable demands.”
It also encouraged the public to transact directly only with BSP-supervised banks and financial institutions, including pawnshops, money servicers, e-cash issuers, and non-stock savings and loan associations.