Financial Crime World

Saudi Arabia’s Anti-Fraud Summit 2022: Battling Digital Dishonesty with Technology and Expertise

During the International Fraud Awareness Week, Riyadh hosted the pioneering anti-fraud specialized event, The Anti-Fraud Summit 2022. The Saudi Monetary Authority (SAMA) and Kearney brought together key financial players, business leaders, and technology innovators to discuss strategic methods for minimizing fraud’s impact in the Kingdom.

The Mounting Fraud Threat

Fraud is becoming an increasingly significant problem, with an estimation that $408.50 billion will be lost to credit card and banking fraud globally by 2030 (Source: Cite). The US Department of Justice reports that over $2 trillion in illicit funds circulate in the global economy, creating an entry point for money laundering and shadow economy elements.

Evolving Fraud Tactics

Cybersecurity provider Resecurity, which offers fraud prevention and money laundering intelligence solutions to leading financial institutions in Saudi Arabia and Fortune 500 companies, shared insights on the evolving tactics used by cybercriminals. Some common techniques include:

  • Distribution of mobile malware to intercept 2FA/OTP codes and credentials to online banking accounts
  • Identity theft
  • Social engineering
  • Phishing

Fighting Fraud with Technology

To counteract these threats, Resecurity provides a multi-faceted solution utilizing:

  • Device fingerprinting
  • Fraud & risk intelligence feeds
  • SDK
  • AI-based engines

These approaches help recognize suspicious activity and deter fraudsters from accessing victims’ accounts. Preemptive threat intelligence and Dark Web monitoring can also help identify possible signs of account compromise before fraudulent activities occur.

The Role of Technology in Fraud Prevention

Christian Lees, the Chief Technology Officer of Resecurity, emphasizes the importance of technology in the fight against fraud: “As cybercriminals become more cunning and inventive, our mission is to harness the most advanced technology, driven by Artificial Intelligence and Data Science, to thwart it.”

Saudi Cybersecurity Company (CyberKSA)’s Perspective

Abdulrahman Alkenani, the CEO of Saudi Cybersecurity Company (CyberKSA), echoed Lees’ sentiments, stressing the need for financial institutions to invest in robust fraud prevention solutions: “Displace antiquated statistical algorithms with behavioral and data-driven mechanisms.”

The Anti-Fraud Summit’s Impact

The Anti-Fraud Summit provided an invaluable platform for industry leaders to exchange ideas, discuss complex cases, and acquire insights into effective fraud-combating strategies. All attendees expressed their gratitude to SAMA for facilitating this event.

SAMA’s Response to the Fraud Threat

With Saudi Arabia emerging as an attractive destination for world-class investors, it has become a prime target for cybercriminals. In response, SAMA recently released a revised “Counter-Fraud Framework,” which provides financial institutions with comprehensive compliance requirements covering:

  • Fraud detection and prevention
  • Due diligence
  • Ongoing monitoring
  • Financial crimes investigations
  • Employee and customer training
  • And more.