Banking Fraud: The Weekend Scams That Flew Under the Radar

Sophisticated Fraud Schemes Target Major Airlines Over the Weekend

In a shocking revelation, it has been discovered that several major airlines were victimized by sophisticated fraud schemes over the weekend, resulting in millions of dollars being stolen without detection until it was too late.

The Scams: How They Worked

According to sources, two different airlines fell prey to these cunning scams, which involved hackers gaining access to sensitive information and then demanding ransom payments in exchange for not releasing the data online. This type of fraud is known as “extortion” and is often carried out through online channels.

• Hackers target major companies with valuable information, such as software designs or movie content.
• They threaten to release the stolen information unless a ransom is paid.
• The ransom payment is usually demanded in Bitcoin or other online payment methods.
• In some cases, samples of the stolen information are released to the public or the company to substantiate the hackers’ claims.

Concerns about Prosecution and Detection

The Special Prosecutor’s Office has raised concerns about the lack of effective prosecution in these types of cases, citing a threshold value for fraud that must be met before intelligence is shared between countries. Moreover, banks do not report cybercrime related to banking systems, instead choosing to absorb the losses.

The Role of Banks and Regulatory Bodies

In Serbia, the National Bank (NBS) is responsible for supervising banks, payment institutions, and financial leasing companies. However, most cases of fraud and cybercrime are reported to the Ministry of Interior rather than the NBS or Anti-Corruption Agency.

• The NBS has implemented guidelines on the security of internet payments.
• Many banks lack specific indicators for cybercrime in their software.
• Only half of the banks have implemented significant indicators in their software, with no specific cybercrime indicators available.

Payment Systems and Credit Cards

Visa and MasterCard do not issue credit cards directly in Serbia, instead partnering with commercial banks to provide payment services. The NBS organizes a local payment card scheme, DinaCard, which is used by commercial banks.

Recommendations for Prevention and Detection

The adoption of the Decision on Minimum Information System Management Standards for Financial Institutions has helped implement guidelines on internet payments security. However, more needs to be done to prevent and detect these sophisticated fraud schemes. It is essential that regulatory bodies, financial institutions, and payment systems work together to address this issue effectively.