Financial Crime World

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Banking Scams on the Rise: Types of Fraudsters Targeting Jamaicans

A recent report by the Bank of Jamaica reveals a staggering increase in bank fraud occurrences, despite a decline in the value of losses. According to the report, local banks detected approximately 25,000 instances of fraud in 2022, up from 15,000 in 2021 and a mere 5,000 in 2019.

Credit Card Fraud Remains Most Common Type

Credit card fraud remains the most common type of fraud, accounting for 70% of all losses. However, internet banking fraud has gained popularity, with scammers using SIM-swap fraud to bypass two-factor authentication and gain access to online accounts.

Demographics of Victims

The report also notes that women are more likely to fall victim to bank fraud than men, with 51.6% of victims being female. The majority of victims are also between the ages of 35-50, making them prime targets for fraudsters.

Experts’ Concerns

While the value of losses has decreased, experts warn that the rise in occurrences is a cause for concern. “The number of attacks or occurrences of fraud jumped by two-thirds from 15,000 to over 25,000 in 2022,” said a BOJ official. “This is the highest level seen in at least five years.”

Methods Used by Fraudsters

Fraudsters have been using various methods to carry out their schemes, including:

  • Fraudulent cheques
  • Credit and debit cards
  • Wire transfers
  • Loans
  • Internal or occupational fraud

International Trend

Experts say that the rise in fraud is not unique to Jamaica, as international organizations have also reported an increase in fraud cases since the pandemic.

BOJ’s Efforts to Combat Fraud

The Bank of Jamaica has implemented several measures to combat fraud, including:

  • Improved combative measures
  • Chip encryption in cards

Financial System Vulnerability

Despite these efforts, the report warns that the financial system remains vulnerable to external shocks, such as a US recession. To mitigate this risk, the BOJ has carried out stress tests on various financial sub-sectors, which showed that the system remained broadly resilient to these shocks.