Technology helps fraudsters to sharpen their skills

Last year the Saudi Central Bank issued temporary measures to banks operating in the Kingdom in order to combat financial fraud.

The measures included suspending certain online services, such as remote account opening, and setting a SR60,000 ($16,000) limit on daily electronic transfers to the accounts of individuals and sole proprietorship establishments.

SAMA took the steps as part of efforts to support the stability of the banking sector and bolster confidence within the financial system amid an increase in the number of fraudulent websites and social media accounts.

Financial fraud is defined as any act of illegal behavior involving deceiving the victim to obtain direct or indirect financial benefits and stealing his or her money.

Fraudsters use a number of techniques, such as stealing ATM or credit cards, and also promoting fake investments that promise high returns.

Fraud is becoming one of the most challenging risks facing electronic financial transactions, especially when it is executed through public and unsecured networks, such as Wi-Fi.

Executing financial transactions electronically, especially through the use of bank cards, mobile phones or the internet, provides individuals with a significant advantage since it is both cost-effective and time saving. However, it is vulnerable to fraud if fraudsters are able to access the victims’ banking records and personal information, especially the one-time password.

I believe that Saudi Arabia should consider establishing a central platform responsible for handling financial fraud and other related financial crimes, including, but not limited to, receiving and analyzing calls on fraud, and arresting the fraudster to recover stolen money.

It is known that fraudsters use the latest technologies to sharpen their fraud capabilities and skills, allowing them to carry out forgeries, for example, that are difficult to detect.

Faced with this growing threat, SAMA, the Capital Market Authority, Saudi banks and other government authorities are constantly enhancing public awareness of the different techniques of financial fraud and ways of prevention.

Preventing financial fraud and other financial crimes from spreading is a shared responsibility between all concerned parties, including, but not limited to, financial authorities, security services, banks and customers.

Unfortunately, combating the problem is becoming a highly complex issue, as fraudsters are increasingly sophisticated in using advanced techniques, such as artificial intelligence, to target their victims and commit their crimes.

I believe that Saudi Arabia should consider establishing a central platform responsible for handling financial fraud and other related financial crimes, including, but not limited to, receiving and analyzing calls on fraud, and arresting the fraudster to recover stolen money.

Creating a unified unit will eliminate the multiplicity of parties that deal with financial fraud cases in the Kingdom. This, in turn, will save time and effort. But, more importantly, it will work in favor of the victim because swift action can safeguard stolen money before it leaves the country.

• Talat Zaki Hafiz is an economist and financial analyst. Twitter: @TalatHafiz