Jamaica’s Banking Sector Cracks Down on Fraud Amid Rising Cyber Threats
In an effort to safeguard customers from rising cyber threats, several commercial banks in Jamaica have implemented new measures to prevent fraud and protect personal information.
New Measures to Prevent Fraud
One of the latest banks to take action is JN Bank Limited, which will require personal customers to use two-factor authentication (2FA) when logging into its online banking platform, JN Live. Effective November 4, customers will need to verify themselves using the Google Authenticator app, a change from the current security image and question protocol.
What’s Changing
The new system will be mandatory for transactions such as:
- Adding transfer recipients
- Transferring funds
- Wire transfers
- Mobile phone top-ups
- Setting up new bill payments
JN Bank has reminded customers to ensure their mobile numbers are up to date, as this information is required for the 2FA process.
Similar Measures Taken by Other Banks
Other commercial banks in Jamaica have also introduced similar measures. National Commercial Bank Jamaica Limited (NCBJ) and First Global Bank Limited (FGB) introduced 2FA methods in June 2017 and March 2010, respectively.
The Rise of Phishing and Smishing
In a statement, NCBJ’s Head of Fraud Prevention Dane Nicholson warned that the rise of phishing and smishing has prompted extreme measures, including the temporary suspension of SMS transaction alerts. “We have seen an increase in cyber-attacks via phishing, smishing, vishing, BIN/Brute Force attacks, website spoofing and other social engineering scams since the COVID-19 pandemic,” Nicholson said.
New Innovations in Fraud Prevention
FGB has rolled out a new app, CVVKEY, which provides temporary CVV numbers for online transactions. The bank’s Head of E-Payments Jermaine Blissett described the app as “incredibly easy to use” and a major innovation in the fight against fraud.
The Growing Threat of Cybercrimes and Fraud
The banking sector’s increased focus on cybersecurity comes amid concerns over the growing threat of cybercrimes and fraud. According to the Bank of Jamaica’s 2022 annual report, the financial sector has seen an uptick in cyber-attacks and fraud attempts, particularly since the COVID-19 pandemic.
Measures to Enhance Security
In response, banks have implemented various measures to enhance security, including:
- The use of biometrics
- One-time passcodes (OTPs)
- OTP codes
- Shifting away from requiring card readers for ATM access, instead opting for simple button presses or contactless recognition tools
Securities Dealers Upgrade Systems
The recent events at Stocks and Securities Limited have further heightened concerns over risk in the financial sector, prompting securities dealers to upgrade their systems and improve customer awareness of transactions and cash movements.
Conclusion
As the banking sector continues to evolve, it is clear that cybersecurity will remain a top priority. With new technologies and innovations emerging, it is essential for banks to stay ahead of the curve and adapt quickly to changing threats and regulations.