Financial Crime World

Dutch Banks Step Up Fight Against Payment Fraud Amid Rise in Authorised Push Payments (APP) Cases

A record surge in payment fraud cases was reported in the Netherlands in 2021, with damages amounting to over €62.5m. While traditional fraud methods, such as stolen bank cards and phishing, have declined, criminals have shifted their tactics to authorised push payments (APP) fraud.

The Rise of Authorised Push Payment (APP) Fraud

  • Damages from APP fraud reached €47.6m in 2021.
  • APP fraud occurs when individuals are tricked into transferring money from their accounts.
  • Bank helpdesk fraud, a form of APP fraud, caused significant damages.

Despite the challenges, the Dutch banking sector is taking aggressive measures to combat fraud and protect consumers.

Combating Fraud: Current Initiatives

The Dutch Banking Association is planning to launch an anti-fraud campaign later in the year to help consumers recognize and report fraudulent activity earlier. Banks have shown leniency towards victims of APP fraud since the end of 2020, compensating them in over 92% of reported cases.

  • Banks are cooperating with various parties to mitigate frauds.
  • The Dutch police have arrested several individuals involved in APP fraud.
  • The Netherlands Police receive over 200 reports of such incidents daily.

A Collective Effort against Digital Crimes

The increase in digital crimes is a broader social issue requiring a collective effort from all public and private parties, under the government’s direction.

  • The Dutch Banking Association has actively sought cooperation with other parties.
  • Initiatives like the Velig Bankieren (Safer Banking) campaign have helped prevent misuse of bank telephone numbers by fraudsters.

Emotional Impact on Victims

Online fraud can have a significant emotional impact on victims. Aleid van der Zwan, deputy director of the Dutch Banking Association, emphasized the importance of preventing fraud and helping customers defend themselves against it.

Conclusion

Cooperation between banks, the police, telecom providers, social media platforms, and other stakeholders is essential to mitigate APP fraud and protect consumers. The collective effort of these parties has led to successful tracing and prosecution of perpetrators.

Confidence: 95%