Jamaica Takes Steps to Prevent Banking Fraud
The Jamaica Bankers Association (JBA) has introduced new standards to combat money transfer scams, a major concern for Jamaican banks and customers.
A Growing Problem: $150 Million Stolen from Jamaican Accounts
Between January 2020 and December 2021, over $150 million was stolen from Jamaican bank accounts. The JBA identified two primary causes of this problem:
- External Events: Money muling, a type of fraud where scammers trick victims into transferring money from their bank account.
- Internal Bank-Related Issues: Audit trails identify those responsible and local banking culture is to prosecute fraudulent activities.
New Measures to Prevent Fraud
To combat money transfer scams, banks are implementing Confirmation of Payee (COP) checks. COP involves verifying that transferred funds reach the intended account by checking the name entered in the transaction against the registered account holder’s name, sort code, and account number.
Customer Education is Key
According to JBA Executive Director Richard Murray, customer education campaigns are the most effective tool in reducing online fraud losses. Principal strategies include:
- Educating Customers on Social Engineering Events: Phishing, where victims inadvertently volunteer sensitive information.
- Internal Bank Measures: Audit trails identify those responsible and local banking culture is to prosecute fraudulent activities.
Fraudsters’ Tactics
Fraudsters often pose as legitimate companies or imitate trusted contacts to trick victims into handing over sensitive information. This can result in unauthorized transfers into fraudulent accounts. Be cautious of:
- Phishing Emails, Texts, and Social Media Messages: May include grammatical errors or bad links.
- Providing Full Password or PIN Information: Organizations will never request this.
Staying Safe Online
To stay safe online, the JBA recommends:
- Avoiding Unexpected Links
- Being Aware of Communication Fraud: Texts, emails, or social media messages with bad grammar or suspicious requests for personal information.
- Not Providing Full Password or PIN Information
By implementing these measures and educating customers on online fraud prevention, the Jamaica Bankers Association aims to make banking in Jamaica safer.