RIYADH – There has been a surge in incidents of financial fraud being practiced by unscrupulous people to cheat bank customers, according to a Saudi Central Bank (SAMA) report, obtained by Okaz/Saudi Gazette. The SAMA report for the year 2021 said the fraudsters use multiple methods to gain access to people's banking data and personal credentials to steal their money. The report shed light on various methods being employed through both traditional and electronic channels to gain access to customers' banking data. One of them is through impersonation of bank officials. Another method is luring customers to attractive investment schemes with a promise of high profit margins. This is done through fake websites and online advertisements which falsely use the names of government agencies, investment funds or celebrities to attract investments from victims. Webpages and portals The fraudulent practices also include creating fake web pages or portals to sell goods or provide services and the like for the purpose of obtaining access to customers' banking and visa card data and instantly emptying cash from their bank accounts. During the peak pandemic period in 2021, the fraudsters attempted to cheat aspiring drivers in the name of fake driving schools, the SAMA report pointed out. The fraudsters lured driving school trainees to sit for an online exam, purportedly carried out by their designated driving school. In the midst of the fake exam process, the fraudsters manage to get access to personal data of the candidates via the Absher platform and open bank accounts without their knowledge, and use them for the transaction of money received through fraudulent means. Activation of verification code The SAMA report explained the modus operandi of the fraudsters who cheat bank customers. The method involves several phases, starting with creating fake web pages, such as Saudi Manpower Solutions Co. (SMASCO), Ajeer, and driving schools. By seeing their attractive offers, the victim enters the web page. He is asked to join as a beneficiary and transfer the processing fees. When this is done, the victim is prompted to enter account details, such as the bank's name, user name and password for accessing electronic banking services, for the purpose of authentication. By gaining access to the victim's bank details and the verification code, the fraudster uses this verification code to enter the electronic banking services, often from outside the Kingdom, and execute financial transactions to steal money from the victim's bank account. SAMA urged bank clients to practice the highest degree of caution against fraud and abstain from disclosing bank and personal data, such as passwords and PINs to any person or party under any circumstances. It underlined the importance of ensuring the reliability of websites that the customers deal with. The Central Bank on Tuesday lifted temporary precautionary measures that were introduced on April 7 to protect bank clients in the wake of a surge in cases of financial fraud. As per the precautionary measures, SAMA had directed all local banks to stop opening bank accounts remotely for individuals, stating that this service would be available through branches exclusively. It called on customers to complete the activation of accounts through branches or self-services with a fingerprint to activate the use of banking services and not to provide the service to non-citizens. The Central Bank attributed this measure to the increase in financial fraud and the multiplicity of fraudulent means. SAMA updated its directives on Tuesday under which customers are allowed to open bank accounts online as per the organizational procedures.
