Jamaica Banking Fraud: JBA Introduces New Standards to Combat Money Transfer Scams
Background
The Bank of Jamaica has reported that over $150 million was stolen from Jamaican bank accounts between January 2020 and December 2021. To combat this growing threat, the Jamaica Bankers Association (JBA) has launched a new set of standards aimed at protecting customers against online banking fraud.
JBA Executive Director’s Comments
According to Richard Murray, executive director of the JBA, most online fraud cases are external to the bank and are often linked to social engineering events such as phishing. However, internal fraud cases do occur and are usually prosecuted once audit trails identify those responsible.
Types of Online Banking Fraud
Money Muling
The JBA has identified money muling as one of the principal causes of online banking fraud in Jamaica. This type of scam involves receiving money from a third party into one’s bank account and transferring it to another account or withdrawing it in cash and giving it to someone else.
Other Types of Online Banking Fraud
- Phishing: where customers inadvertently volunteer their data
- Lottery and sweeps scams: where victims are tricked into paying for fake prizes
- Charity money scams: where fraudsters pose as charitable organizations
- Stranded traveller scams: where victims are targeted with fake emergency situations
- Online dating scams: where victims are tricked into sending money to fake romantic partners
JBA’s Measures to Combat Fraud
Confirmation of Payee (COP) Checks
The JBA has introduced confirmation of payee checks to ensure that transferred funds reach the intended recipient. This system flags suspicious transactions and alerts banks to potential fraud.
Customer Education Campaigns
The JBA is conducting customer education campaigns and working with its member banks to raise awareness about the risks associated with online banking. Murray emphasized the importance of customer education in preventing online banking fraud.
Prevention Tips
- Be vigilant and report any suspicious activity to your bank immediately
- Never provide full password or PIN information in response to an unsolicited request
- Use strong passwords and keep software up to date
- Monitor bank statements regularly
Conclusion
The JBA’s new standards aim to make online banking safer for Jamaicans and reduce the rising losses associated with online fraud. By taking steps to protect themselves, customers can help prevent these types of scams from occurring.