Types of Banking Scams in Jamaica: Commercial Banks Take Measures Against Rising Internet Fraud

Jamaica’s commercial banks are taking steps to combat the increasing threat of internet banking fraud, which has resulted in significant losses. According to data from the Bank of Jamaica, local banks lost $133 million in 2022, a 21% increase from the previous year and a nearly 300% spike over the past five years.

The Rise of Internet Banking Fraud

• The number of reported cases of internet banking fraud soared to 742 in 2022, up from 72 in 2018.
• The Major Organised Crime and Anti-Corruption Agency (MOCA) is investigating several schemes, including one that targeted approximately 150 customers at multiple financial institutions.

Experts Warn of Further Losses

• Experts predict losses closer to $456 million lost via credit and debit card fraud schemes in 2023.
• Dane Nicholson, chairman of the Jamaica Bankers Association’s anti-fraud committee, notes that “tough” and “more robust” measures are being implemented to counter evolving cybercriminal tactics.

New Measures to Combat Fraud

• Two-factor authentication for all transactions is expected to become the standard across the commercial banking sector by March.
• Customer vigilance will also play a crucial role in stemming the problem, as many victims have fallen prey to “social engineering” schemes such as phishing, smishing, and romance scams.

The Role of Customer Education

• The Jamaica Bankers Association is increasing its customer education around internet scams, recognizing that it will be the number one defense against social engineering attacks.
• Nicholson stresses that a partnership between financial institutions and customers is necessary to combat this growing threat.

Real-Life Scenarios

• Scores of Jamaicans have reported losing large sums of cash from their bank accounts after clicking on links embedded in messages they believed were from their financial institution.
• One such victim, George Rivera, lost $293,000 after receiving a text message he thought was from his bank, National Commercial Bank (NCB).

The Impact

• The BOJ data reveals that commercial banks have lost a total of $405 million through 1073 reported cases of internet banking scams since 2018.
• MOCA estimates that the losses could exceed $1 billion, but Nicholson disputes this figure, describing it as “an old rhetoric.”

The Future of Internet Banking Security

• The implementation of these new measures is expected to inconvenience some customers but will provide an added layer of security against cybercriminals.
• As the war on internet banking fraud intensifies, it remains to be seen whether Jamaica’s financial institutions can successfully combat this growing threat.