Saudi’s SAMA Warns Clients of Upsurge in Financial Fraud

  • Richard Marley
  • April 14, 2022
  • 2 minutes read
  • 1915

SAMA urges clients to practice the highest degree of caution and prevents exposing any confidential data to avoid financial fraud

The Saudi Central Bank (Report) claims a surge in the incidents of financial fraud carried out by unethical individuals to cheat bank customers. With the usage of multiple accounts, they gain access to the user’s accounts and steal credentials to get them robbed of their money.

The report shed light on the various methods of impersonation, both electronically and traditionally, used by fraudsters to invade a customer’s account. Creating fake web pages to sell products puts the customers in danger of instantly emptying cash from their accounts.

Another strategy highlighted by the report states luring the customers to attractive investment schemes with a fake promise of high-profit margins. It is carried out by falsely using the name of government agencies, investment funds, or celebrities. 

Upon seeing their attractive pages, the victim falls into the trap and enters the page. They are asked to join as a beneficiary while submitting the processing fees. Next, the victim inserts the account details and verification code which gets hacked by fraudsters who then execute financial transactions to steal money from the victim’s bank account, the SAMA report further pointed out. 

SAMA recommends clients deploy the highest level of caution against such frauds and refrain from providing any personal information, such as PINs to any person or third-party association under any circumstances.  

Introduced on April 7, temporary precautionary measures were lifted by The Central Bank on Tuesday, to protect banks from the prevailing threat of financial fraud.

As per the precautionary measures previously imposed, SAMA had stated to all local banks to stop opening banks accounts remotely for individuals, declaring that this service would be limited to in-branch visits exclusively. Customers were called on to complete the activation process of accessing their accounts by scanning their fingerprints to save them from not providing access to non-citizens. 

On updating the directives proposed by SAMA on Tuesday, customers are now allowed to open online bank accounts as per the organizational procedure.

Suggested Read: Saudi Arabia Takes New Measures to Tackle Financial Crime