UnionPay bogus transactions reach MOP260 million

The number of bogus transactions through UnionPay cards has reached MOP260 million this year, with a total of five cases being recorded by the Judiciary Police (PJ), Lusa news agency reports.
Chinese and Macau authorities further restricted the use of China UnionPay Co.’s debit cards at casinos last year, since some gamblers had been illegally using UnionPay cards to obtain cash through the false purchase of goods in Macau, thus avoiding China’s strict currency-export controls.
In 2014, authorities recorded 47 cases of bogus transactions through UnionPay cards, amounting to MOP784 million. Police authorities said 124 suspects were involved in these cases, mainly from mainland China. Twenty suspects are from Macau, three from Hong Kong and one from Taiwan. These illegal transactions took place mainly in casinos, hotel rooms or on nearby streets. Seventy-nine UnionPay machines were seized, the report added.
Union Pay International suffered losses of MOP1.56 million last year due to the use of UnionPay cards in bogus transactions. This year’s losses have reached MOP520,000.
Last year, Macau casinos were handed a deadline to eliminate illegal China UnionPay mobile swipe card devices, after tighter restrictions on China’s payment card were implemented. The Macau Monetary Authority ordered jewelry shops and pawnshops operating on casino floors remove their UnionPay card terminals.
Mainland visitors are legally allowed to take RMB20,000 into Macau, and withdraw as much as RMB10,000 a day at the city’s cash machines with each of their cards.
Bloomberg reports that mainland tourists bypassing currency controls helped fuel a decade-long boom in Macau.
The increased oversight of UnionPay cards used by gamblers to access funds in Macau is believed to have contributed to the city’s falling gaming revenues for the ninth consecutive month in February. CP