Jamaica’s Financial Institutions Boost Security Measures Amid Soaring Internet Scams
In response to a significant surge in internet scams and millions of dollars in losses, Jamaican commercial banks are set to implement stricter security measures for transactions. The new measures, still being finalized, are expected to be in place by March 2023.
A Growing Concern: Internet Banking Fraud
Local commercial banks lost a staggering $133 million in 2022 through internet banking fraud, marking an annual increase of 21 percent and a near 300 percent spike over the last five years. The number of reported cases soared to 742 in 2022, up from 72 in 2018 and 134 last year.
Cybercriminals Evolving Tactics
The Jamaica Bankers Association (JBA) reported that cybercriminals continue to find new ways to outsmart unsuspecting customers. Experts predict that losses for local financial institutions could move closer to the combined $456 million lost via credit and debit card fraud schemes.
New Measures: Two-Factor Authentication and Customer Education
To counter the evolving techniques of cybercriminals, financial institutions are adjusting their internal controls. The new measures will include:
- Two-factor authentication for all transactions
- Increased customer education around internet scams
According to Dane Nicholson, chairman of the JBA’s anti-fraud committee, “We have to put measures in place to protect the customers from themselves because some customers are still inadvertently exposing themselves to these types of activities.”
Investigations Underway
The Major Organised Crime and Anti-Corruption Agency (MOCA) is currently investigating several internet banking schemes, including one that was used to fleece millions of dollars from approximately 150 customers at multiple financial institutions.
Public Sector Employee Falls Victim to Scam
George Rivera, a public sector employee, fell victim to an internet scam after receiving a text message he believed was from his bank, National Commercial Bank (NCB), instructing him to update his password. He later discovered that $293,000 had been removed from his account and a loan of $315,000 had been taken out in his name.
MOCA Predicts Higher Losses
According to MOCA, the losses from cyber and cyber-enabled schemes could actually exceed $1 billion, due largely to underreporting of incidents by banks and customers. However, Nicholson pushed back at this assertion, describing it as “an old rhetoric.”
Arrests Expected in Cybercrime Cases
Nicholson predicted that early in the new year, arrests will be made in relation to cybercrime matters. The JBA is working closely with MOCA to combat internet scams and protect customers.
By implementing these new measures, Jamaican financial institutions aim to prevent further losses and ensure a safer online banking experience for their customers.