Financial Crime World

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E-Banking Fraud: A Growing Concern in Serbia

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E-banking fraud has been detected twice recently, with two different airlines falling prey to this lucrative scam. The fraud, often undetected until it’s too late, has significant financial implications for the affected parties.

Extortion of Businesses: A New Trend

The Special Prosecutor’s Office has raised several important issues related to similar cases. In some instances, extortion is carried out via online channels, using information gathered in attacks on companies. The scam typically involves hacking or disgruntled employees stealing valuable data, such as software designs or pre-premiere movies and series.

Ransom Demands: A Common Theme

Once the suspects have stolen the data, they demand a ransom from the company, often in Bitcoin or other online payment methods. To substantiate their claims, samples of the stolen information are released to the public or the company.

Banks’ Role in Cybercrime Detection

The banks’ onboarding procedure should allow for sufficient information to be gathered, enabling automated fraud detection. The expected turnover, type of business, and other details can be used to effectively detect potential fraud in software.

NBS: The Supervisory Authority

The National Bank of Serbia (NBS) is the supervisory authority responsible for banks, payment institutions, and financial leasing companies. However, most cases of fraud and cybercrime are expected to be reported to the Ministry of Interior rather than the NBS or APML, especially when large amounts are concerned.

Visa and MasterCard do not issue credit cards in Serbia directly. All credit cards are issued by commercial banks. The NBS organizes a local payment card scheme – DinaCard – which is used (and issued) by commercial banks.

AML/CFT Functions: Supportive Software

Most Serbian banks have implemented AML/CFT functions supported by software, with half of the banks having implemented significant indicators in this software. However, there are no specific cybercrime indicators yet, although some banks have a list of additional indicators for ML/FT.

Conclusion

E-banking fraud is a growing concern in Serbia, with significant financial implications for those affected. The Special Prosecutor’s Office has raised several important issues related to similar cases, highlighting the need for improved cybercrime detection and prevention measures. As the e-commerce landscape continues to evolve, it is crucial that banks, payment institutions, and regulatory bodies work together to stay ahead of this growing threat.

  • E-banking Fraud: A Growing Concern in Serbia
  • Cybercrime Detection: The Role of Banks and Regulatory Bodies
  • Payment Systems: Secure or Vulnerable?