Issue 11
October 2024
Welcome to the MBA's News Digest!
Dear readers,
Codes, passwords and bank login details: NEVER GIVE OUT THIS INFORMATION.
This is the ABC of fraud prevention.
As Cybermoi/s 2024 – the French adaptation of Europe’s Cybersecurity Month – kicks off, data reveals the French are seeing a sharp rise in fraud linked to their personal and banking information.
In the UK, new laws proposed by Government aim at giving banks more time to break the spell woven by fraudsters over their victims, and tackling the estimated £460 million lost to fraud, last year alone.
Best wishes,
The MBA team
Fraudulent Investments
7 October 2024
‘The South African Banking Risk Information Centre (SABRIC) urges the public to exercise extreme caution as banks report a significant rise in the involvement of bank customers in fraudulent investment schemes. These scams, which promise high returns with little to no risk, have already affected thousands of customers. SABRIC CEO Nischal Mewalall said, “These schemes are highly sophisticated, employing professional-looking websites, fake news articles, false endorsements, and even deepfake videos to create an air of legitimacy and deceive unsuspecting investors. Our banks are working closely together to identify affected customers and take the necessary steps to protect them.” ’
Understanding the new legal framework for the transfer of non-performing loans
7 October 2024
‘In light of the recent law of 15 July 2024 regarding the transfer of non-performing loans (NPLs), the ABBL has developed a set of Questions and Answers to help members navigate this complex regulatory landscape. The new legislation has significant implications for credit institutions, credit purchasers, and servicers, introducing specific obligations for each stakeholder involved in NPL transactions. This guide aims to clarify some of the most pressing questions related to the law, providing detailed information on the scope of the law, the obligations of credit sellers and purchasers, as well as the rights of debtors and the role of credit servicers.’
New powers for banks to combat fraudsters
3 October 2024
‘Banks will be given new powers to delay and investigate payments that are suspected of being fraudulent, helping to protect consumers against scammers. New laws proposed by the Government today will extend the time that payments can be delayed by 72 hours where there are reasonable grounds to suspect a payment is fraudulent and more time is needed for the bank to investigate. This will give banks more time to break the spell woven by fraudsters over their victims and tackle the estimated £460 million lost to fraud last year alone.’
Recommendations to Strengthen Singapore’s Anti-Money Laundering Framework: ‘Proactive Prevention, Timely Detection, Effective Enforcement
4 October 2024
‘The IMC review, drawing lessons from the major money laundering (ML) case in August 2023, was convened to ensure that our system remains relevant against increasingly sophisticated criminal tactics. It focused on five key areas: a) How to better prevent money launderers from misusing corporate structures; b) How financial institutions can enhance their controls and collaborate more effectively with one another and the authorities to guard against and flag suspicious transactions; c) How other gatekeepers in the system, like corporate service providers, real estate salespersons and estate agencies, and precious stones and precious metals dealers can better guard against ML risks, including the adequacy of the existing regulatory framework over these players; d) How to better centralise and strengthen monitoring and sense-making capabilities across government agencies to detect suspicious activities; and e) How to strengthen enforcement levers and capabilities to enable firm and decisive actions against money launderers, including depriving them of ill-gotten proceeds.’
Challenges in prosecuting crypto-related crimes – Q&A with Shenaz Muzaffer
7 October 2024
‘The first challenge relates to the legislative framework in the jurisdictions in which we work. In many of our jurisdictions, if not in all, the relevant legislation was drafted prior to the invention of cryptocurrencies. We know that the first cryptocurrency was launched in 2009. But in the UK, for instance, the Fraud Act dates back to 2006, while the Proceeds of Crime Act is from 2002. This means that, because of the way the legislation is drafted, it can’t always be readily applied to the prosecution of crypto-related financial crimes. We need to ask, for example, whether the definition of “property” within existing legislation is broad enough to encompass crypto assets. It’s not only a challenge for the prosecution, but also for when we are looking to recover assets.’
A national campaign to raise awareness of payment fraud in France
30 September 2024
‘Faced with the technical reinforcement of security, fraudsters are coming up with increasingly sophisticated ploys to manipulate their victims, extorting their bank information from them by taking advantage of news stories or enthusiasm surrounding major events. The majority of cases of fraud involve the theft of telephone numbers. Others rely on the latest innovations in artificial intelligence. Deepfakes are used to mimic the voice of the victim’s banker or public officials. These new threats have led market players, in consultation with the public authorities, to develop mechanisms to combat these various fraudulent processes: firstly, in terms of telecommunications infrastructures, with the implementation by operators of a mechanism to protect professionals’ user details for sending text messages and the activation from 1 October of the termination of calls whose numbers are not authenticated; secondly, in terms of payment infrastructures, with the implementation of the IBAN confirmation service, which will help combat transfer fraud. These systems aim to make fraud attempts more easily detectable by users, but they cannot replace their own vigilance.’
The launch of the RLN Experimentation Phase reports: A step toward the future of payments
27 September 2024
‘The Experimentation Phase delved into three key areas: business, technology, and legal frameworks. The findings highlighted how tokenised deposits, operating within the current legal and regulatory structures of the UK, can provide a next step in the evolution of commercial bank money. Crucially, this phase demonstrated that an RLN could deliver significant benefits in real-world applications, including potentially reducing payment fraud and streamlining complex transactions, such as property purchases. For example, in combatting authorised push payment fraud – where victims are tricked into sending money to fraudsters – a platform for innovation could introduce smart contracts that lock funds and only release them when the agreed conditions are met, such as the receipt of goods or services. Similarly, in property transactions, a platform for innovation could facilitate the simultaneous execution of multiple actions, including mortgage drawdown, transfer of deposits, and payment of stamp duty, all through automated and secure processes.’
Open banking unlocks opportunities
8 October 2024
‘Starting in 2020, Australians could authorise third parties to access information from their savings accounts, credit cards, mortgages, and more. This system allows consumers to compare products, manage their finances more effectively, and even switch banks more easily without sharing passwords or compromising security…. At ANZ, open banking is being integrated into the new ANZ Plus retail banking platform, which is designed to give customers the tools they need to manage their financial wellbeing. One key feature is My Accounts, which allows users to view all their eligible bank accounts in one place. This removes the hassle of switching between apps or websites to get a full view of their finances.’
Banks to put four-day hold on suspicious payments
3 October 2024
‘Banks will have the power to pause payments for up to four days to give them more time to investigate fraud, the government has said. Currently, transfers must be processed or declined by the end of the next business day, but the new law will allow an extension of three more days. For years, banks have needed to have reasonable grounds to suspect fraud before being able to investigate but have also faced pressure from customers who want payments to be made instantly. The long-proposed new regulations will come into force at the end of October – later than originally planned.’
Almost All Banks Rule Out Guaranteed Full Refunds for APP Fraud Losses
7 October 2024
‘New fraud protections have come into effect today (7th October), and the personal finance comparison site Finder has revealed that only 4 out of 21 major banks have decided to definitely cover the first £100 of any APP (authorised push payment) fraud. APP fraud is when a fraudster tricks you into sending money from your account to an account that they control, for example by selling items online that don’t exist or pretending to be from your bank. The new rules from the Payment Systems Regulator (PSR) make it a mandatory requirement for banks to cover consumers’ losses from APP fraud up to £85,000, as long as they haven’t been “grossly negligent”. But it has left banks to decide if they will apply an “excess” of up to £100 of any fraud claim.’
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