Monaco’s Battle Against Financial Crimes: Expert Insights from Christian Lothion

At the annual meetings of the Comité Français d’Organisation et de Normalisation Bancaire in Monaco, a thought-provoking discussion on financial crimes took place against the backdrop of the Principality’s iconic landscape. Renowned security expert, Christian Lothion, shared insights into the evolving threats to the banking sector and revealed new forms of fraud.

From Physical to Digital Threats

Born and raised in Vouvray, Lothion spent the better part of his career in the criminal investigation and intelligence field. He served as the Head of the Judicial Police in Nice and is currently the Director of Security and Security Advisor for the Fédération Bancaire Française. Lothion emphasized that the focus on banking security has shifted from physical attacks to digital and more sophisticated forms of fraud.

Decline in Physical Bank Robberies

“In the past, the focus was on physical security as the primary threat to banks,” he began. “Armed robberies have declined significantly, from around 8,000 instances in 1986 to around 2,300 today.” This decline is thanks to enhanced security measures and alternative cash handling methods.

Modern Threats to Banking Security

Although physical incidents have decreased, they don’t indicate complete safety. Two modern threats that bypass physical security are:

1. ATM attacks
2. Fake transfer scams

ATM Attacks

Attacks on Automated Teller Machines (ATMs) have surged as the new preferred method of theft. There are two primary methods:

• Attacking the contractor: Criminals target the employees tasked with refilling ATMs at night using trucks to breach the control room and intimidate the worker into releasing cash.
• Attacking the vulnerable ATM machine: Criminals specifically target ATMs in rural areas, where they can either rip off the machine using heavy machinery or blow it up to seize strongboxes.

Countermeasures

To mitigate these attacks, banks have intensified security measures by collaborating with local authorities and reinforcing secure technical areas. Additionally, the Ministry of the Interior in consultation with the Fédération Bancaire Française has proposed installing staining devices in ATMs.

Fake Transfer Scams

Extensive and organized scams, such as fake international transfer orders, represent a significant challenge for law enforcement and require heightened vigilance.

Fake International Transfer Order Scam

Criminals often target executives, trying to persuade them to authorize large transfers by sending fake transfer orders. These transfers are then routed through bounce banks before reaching their ultimate destination, often in Chinese accounts.

Fake Change of Bank Details

Another sophisticated variant of this scam is when criminals disguise themselves as suppliers, providing new account details that look similar to the client’s original accounts. The fraudulent transfer is only detected when the real suppliers demand payment.

Prevention

Preventing falls victim to these fraudulent schemes requires utmost caution and constant vigilance, according to Lothion.

Upgrading Physical Security Measures Against Financial Crimes

The battle against financial crimes calls for continuously upgrading physical security measures alongside enhanced vigilance and caution. Despite decreases in physical incidents, there’s no room for complacency when it comes to ensuring banking security.