The Monetary Authority has advised all authorised institutions to take precautionary measures against ATM fraud.

Some 33 ATM fraud cases involving $1.6 million have been reported in the last 12 months, out of which 45% have been settled.

It advises precautionary measures such as upgrading the security of ATMs, installing closed-circuit television systems, more frequent patrols of ATMs and enhanced customer education on the importance of protecting their cards and PIN numbers.

The authority will monitor progress in implementing these measures and request that mechanisms are put in place allowing for the quick identification of counterfeit cards.

"This will enable authorised institutions to quickly determine whether or not a customer should be compensated," authority Deputy Chief Executive William Ryback said.

The Code of Banking Practice stipulates that card issuers will bear the full loss incurred when transactions are made through the use of counterfeit cards.

On unsettled cases, authorised institutions should conduct their internal investigations in a full and prompt manner in parallel with Police investigations, Mr Ryback added.

Where customers' cases are substantiated, compensation should be made according to the code as soon as possible without waiting for the Police report.

"In other cases, authorised institutions should reply to customers within one month after receiving the Police reports," he said.

He said the authority will ensure that customers' complaints are dealt with fairly and reasonably.