Rising Payments Fraud in the Netherlands: Banking Sector Steps Up Efforts to Prevent Scams

Introduction

The Dutch Banking Association has revealed that despite successful measures to combat traditional forms of fraud, criminals are increasingly resorting to new tactics, resulting in a steep rise in authorized push payment (APP) fraud. According to latest statistics, the total damage caused by various forms of fraud in the payment system jumped from almost €50 million in 2020 to €62.5 million in 2021.

The Rise of APP Fraud

Authorized Push Payment (APP) fraud is a growing concern for the banking sector. In this type of fraud, customers are tricked into making payments themselves, making it increasingly difficult for banks to recognize fraudulent transactions. This shift has posed a significant challenge for banks, as they struggle to keep up with new tactics used by criminals.

Statistics

• The total damage caused by various forms of fraud in the payment system jumped from almost €50 million in 2020 to €62.5 million in 2021.
• 92% of cases of bank helpdesk fraud were compensated in 2021.

New Anti-Fraud Campaign

The Dutch Banking Association will launch a new anti-fraud campaign later this year to help consumers identify fraudulent behavior earlier. The sector has also taken a lenient stance since December 2020, compensating customers who have fallen victim to bank helpdesk fraud.

Emotional Impact of Online Fraud

The emotional impact of online fraud on victims cannot be overstated, according to Aleid van der Zwan, deputy director of the Dutch Banking Association. “We continuously take measures to prevent fraud and we help customers to arm themselves against it.”

Cooperation with Authorities

In response to the rise in APP fraud, the banking sector is seeking cooperation with authorities such as the police, telecom providers, social media platforms, and other parties to combat digital crime.

Successes

• The Dutch Banking Association has actively sought cooperation over the past year, resulting in successes such as a collaborative campaign called Velig Bankieren (Safer Banking), which ensured that bank telephone numbers can no longer be misused by fraudsters.
• The police have also reported significant progress in tracing and prosecuting perpetrators, with nine people arrested in October 2021 for impersonating customer support.

Daily Reports

The Dutch police receives over 200 reports of such incidents daily. The cooperation between the banking sector and authorities is crucial in preventing and combating digital crime.