Saudis Central Bank Discovers Massive Increase in Financial Fraud Cases: 4.84 Million Accounts Affected
SAudi Arabian Monetary Authority (SAMA), the Kingdom’s central bank, announced a significant increase in financial fraud cases in 2021. Below are the essential details and insights from the report.
Key Findings
- Nearly 55% of all remotely opened accounts were opened without proper customer identification.
- Over 4.84 million accounts were affected by this fraudulent activity.
Major Contributors to Financial Fraud
- Weaknesses in process control systems (PCS) for better fraud detection.
- Insufficient investment in artificial intelligence (AI) and customer behavior study for anti-fraud systems.
- Negligible verification procedures for IBANs (International Bank Account Numbers) and beneficiary names.
- Inadequate measures to trace funds and stop transfers outside the country.
- Recording and tracking fraudulent activities with insufficient details.
- Ineffective anti-financial fraud units due to a shortage of skilled personnel.
- Lack of proper customer awareness programs.
SAMA’s Instructions to Curb Financial Fraud
- Banks need to adhere to the central bank’s strategic objectives.
- Comprehensive set of preventive measures to protect consumers.
- Ensure stability and confidence within the banking sector.
Image Source: SAMA Website.
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