MOROCCO: Banking Fraud Types on the Rise, Experts Warn
As part of efforts to combat increasing cases of banking fraud in Morocco, Bank Al-Maghrib has set up a device to capture information on cards and cheques fraud. The aim is to have a comprehensive view of detected cases and monitor national fraud rates more effectively.
Cheque Fraud: The Three Main Forms
According to experts, cheque fraud comes in three main forms:
- Falsified Cheques: Those issued by the account holder but with changes made after interception.
- Counterfeit Cheques: Those not made or authorized by the legitimate account holder.
- Cheques with Falsified Certification: Those with fake endorsements.
Cards Fraud: Multiple Sources
Cards fraud, on the other hand, has multiple sources:
- Falsified or Counterfeit Cards: Modifying magnetic, embossing, or programming data to create a fake payment card.
- Usurped Card Numbers: Raising a card number without the owner’s knowledge or creating one by “throwing” and used for distant sales.
- Non-Received Cards: Intercepted during transmission from the issuer.
Fraud Techniques Employed
Criminals employ various fraud techniques, including:
- Skimming: Copying magnetic stripes using memory devices called “skimmers”, followed by PIN capture through cameras or hijacking keypads.
- Misusing Card Data: Contacting clients over the phone, asking for personal information including CVV2.
- Fraudulent Account Opening and Identity Theft: Other common methods used.
Abusive Repudiation and Hacking
Experts warn that:
- Abusive Repudiation: Holders appealing valid payment orders in bad faith is also on the rise.
- Hacking Automated Data Systems, Servers, or Networks: A significant concern.
“Spinning” Technique
Lastly, criminals use the “spinning” technique, which involves using issuer-specific rules to generate card numbers and make payments.
Device Set Up by Bank Al-Maghrib
The device set up by Bank Al-Maghrib aims to monitor these fraud techniques and reconcile official rates of fraud on cash payment instruments issued by the bank. This will enable targeted corrective or preventive actions to be taken, ultimately contributing to the development of a safer financial system in Morocco.