Dutch Banks Take a Stand Against Surging Payments Fraud: Authorized Push Payment Scams on the Rise

Overview of Payments Fraud in the Netherlands

According to the Dutch Banking Association (DVA), payments fraud in the Netherlands reached over €62.5 million in damages in 2021 ¹. The sharpest increase was observed in the form of authorized push payment (APP) fraud, where users are tricked into transferring funds ¹. Here are some more insights detailing the current state of payments fraud in the Netherlands.

• Damages from various forms of fraud: The total damages from various types of fraud in the Dutch payment system amounted to over €62.5 million, with €47.6 million attributed to bank helpdesk fraud.
• Phishing and stolen bank cards: Phishing and stolen bank cards result in decreased damages compared to the previous year.
• Emotional impact: Aleid van der Zwan, the deputy director of the DVA, recently acknowledged the emotional impact of online fraud and reassured the public that banks continue to take a proactive approach against it ¹.

Banking Sector’s Commitment to Preventing Fraud

The banking sector, which has seen customers compensated for their losses in 92% of bank helpdesk fraud cases since the end of 2020 ¹, has remained committed to preventing fraud.

Collaborations and Initiatives

Several collaborations and initiatives have emerged, focusing on garnering support from various sectors to effectively tackle payments fraud in the Netherlands.

Velig Bankieren (Safer Banking)

A successful collaboration was the joint initiative known as “Velig Bankieren” (Safer Banking), which involved the telecom sector. This endeavor ensured bank telephone numbers could no longer be manipulated by fraudsters ¹.

Police Collaboration

Working alongside the police also proved fruitful, as in October 2021, nine individuals posing as customer service agents were apprehended. Frozen crypto-assets, representing the criminals’ ill-gotten gains, were reported ¹.

The Importance of Cooperation and Focused Objectives

Given the rise in digital crime, the authorities and financial institutions remain focused on their shared objectives of preventing and combating payments fraud effectively. With an average of more than 200 fraud-related incidents daily ¹, the battle against fraud continues.