Financial Crime World

Saudi Arabia Battles Online Fraud Epidemic with New Cyber Anti-Fraud Program

Amidst growing concerns about online fraud, new data reveals that the problem is not limited to North America and Western Europe. The global consumer and business losses from e-commerce fraud reached an estimated $48 billion in 2023, with the Middle East seeing a significant rise in fraud incidents.

The Extent of Online Fraud in Saudi Arabia

According to a survey by the King Abdul Aziz Center for National Dialogue, 62% of Saudi Arabian consumers fell victim to spam and scam messages, primarily on their mobile devices. In reported cases, 72% of fraudsters impersonated banks, 18% posed as police officers, and 10% claimed to be delivery services. 14% of respondents admitted to losing money due to these scams.

Bank-related online fraud schemes have become increasingly common in the Kingdom. In response, Saudi authorities have taken significant strides to combat these frauds.

The Public Prosecution has pursued cases against individuals posing as bank employees, and issued warnings about various financial scams.

New Cyber Anti-Fraud Program (CAFP)

In a recent development, the Saudi Arabian Monetary Agency (SAMA) announced the first edition of the Cyber Anti-Fraud Program (CAFP). Running for three months, this program aims to train and develop a select group of trainees from SAMA and local banks through rigorous cyber fraud education and practical on-the-field training.

Program Objectives

The program incorporates international best practices in cyber fraud prevention and detection, collaborating with a leading British university and globally recognized entities specializing in cyber fraud prevention. SAMA intends to bolster the financial sector’s capabilities to combat online fraud and safeguard banking customers.

Impact of CAFP and the Future of Online Fraud Countermeasures

If successful, Saudi Arabia’s CAFP may serve as a model for other countries to strengthen their financial sectors against online fraud.

“This comprehensive program not only enhances the financial sector’s cyber fraud prevention capabilities but also provides an opportunity for knowledge transfer and capacity building,” commented Jonathan J. Rusch, a law professor, corporate compliance consultant, and former federal prosecutor.

With growing awareness and determined efforts, such as Saudi Arabia’s, to counteract online fraud, there is a renewed sense of hope that the global community can effectively tackle this global issue.