Financial Crime World

Dutch Banking Sector Warns of Rising Payments Fraud as Victims Compensation Rises

Introduction

Despite efforts by the banking sector to prevent traditional forms of fraud, payments fraud in the Netherlands has seen a significant increase, with authorized push payment (APP) fraud emerging as a major concern.

Statistics

According to statistics released by the Dutch Banking Association, the total damage caused by various forms of fraud in the payment system rose from almost €50m in 2020 to €62.5m in 2021.

  • APP fraud saw a staggering €47.6m in damages
  • Phishing and stolen bank card-related fraud saw a decline in 2021

Measures to Combat Fraud

The banking sector is taking measures to combat this growing threat, including:

  • Launching a new anti-fraud campaign later this year to help consumers identify fraudulent behavior earlier
  • Cooperating with the government, police, and private companies to combat online fraud

Compensation for Victims

Although banks are not liable for the damage if a payment is made by the customer, the industry has adopted a lenient approach since 2020 and has compensated customers who have been victims of bank helpdesk fraud. In 2021, customers were compensated in 92 percent of cases.

Quotes

“The increase in digital crime is a broad social problem that requires cooperation from all parties involved,” said Aleid van der Zwan, deputy director of the Dutch Banking Association. “We are working closely with the police, telecom providers, and other stakeholders to prevent these forms of fraud and help customers protect themselves.”

Success Stories

The collaboration between the banking sector, government, police, and private companies has led to successes such as:

  • The arrest of nine people impersonating customer support in October 2021, resulting in the freezing of crypto-assets
  • Over 200 reports of APP fraud incidents daily, highlighting the need for a coordinated effort to tackle this growing threat

Conclusion

The Dutch banking sector remains committed to protecting its customers and preventing financial losses. As the sector continues to adapt to new forms of fraud, it is essential that all parties involved work together to combat this growing threat.