Online banking fraud: what to watch out for and what to do in case of fraud

0

Dubai: It was past midnight when Fahmi received a text message in Dubai regarding a purchase worth Dh7,000 from a store in the United States. His credit card had been used for the purchase.

The 37-year-old Dubai-based engineer immediately knew he had been the victim of credit card fraud as he had never traveled to the United States. He called his bank and reported the scam before having his card blocked and the PIN changed to prevent further abuse. Fahmi then filed a transaction dispute with his bank and a police complaint as well.

“The bank accepted my request to investigate the fraudulent transaction and after eight weeks the money was returned to my card account after the bank confirmed that it was not me who had used the card in America “Fahmi said. Gulf News.

However, Fahmi is not the only victim to have fallen prey to credit card fraud. Individuals and businesses around the world have had to deal with such nightmares. The issue of cybercrime involving bank accounts and credit cards is not new. Over the past few years, the world has been rocked by headlines implicating personalities, companies and even governments who have fallen victim to cyberattacks.

Cyber ​​attacks on the rise

As the world has become dependent on online transactions, even more so after the COVID-19 pandemic, cyberattacks have increased dramatically and the methods used by cybercriminals have become even more sophisticated and innovative.

According to Wageh Amin Abdelaziz, Senior Legal Advisor at World Center, banking transactions enjoy strong legal protection in the UAE under Federal Law No. 14 of 2018. “The law can punish anyone who intentionally discloses banking information and confidentiality relating to a client’s account, deposits, safes and trusts with approved financial institutions and related transactions. The penalty is imprisonment and a fine between 100,000 Dh and 500,000 Dh,” Abdelaziz said. Gulf News.

The UAE has protected the rights of its bank customers if their accounts are hacked.
Image Credit: Shutterstock

He pointed out that the penalty for anyone who violates Article 120 of the same law states: “All data and information relating to customers’ accounts, deposits, safes and trusts with approved financial institutions and related transactions must be considered confidential and may not be read or disclosed directly or indirectly to any third party without the written permission of the owner of the account or deposit, his lawyer or his agent and in the cases legally authorized. »

Detect internal and external fraud

He said the UAE Central Bank has a customer protection system to regulate the relationship between customers and financial and banking service providers.

“The framework obliges licensed financial institutions to use their resources to detect internal and external fraud as well as to prevent it in the future,” he added.

UAE law may punish anyone who intentionally discloses confidential banking and credit information related to a customer’s account, deposits, safe deposit boxes and trusts with licensed financial institutions and related transactions. The penalty is imprisonment and a fine between 100,000 Dh and 500,000 Dh.

– Wageh Amin Abdelaziz, Senior Legal Advisor at the World Center

Abdelaziz said banks and financial institutes should compensate the customer for cybercrime and misuse of data if the loss is not due to the customer’s negligence. “Do not fall prey to phone calls from bogus bank agents or officials asking you to update your data or account details. Banks will not call you to update your account. Don’t be the reason behind losing your money or having your accounts hacked,” Abdelaziz warned.

More penalties for fraudsters

Additionally, lawyer Mohammad Al Najar said Gulf News that victims can report any incidents of fraud to the police who will then forward the case to the public prosecutor’s office for investigation, before referring the case to the courts for punishment.

Any person who gains unauthorized access to credit, electronic card number, data, bank account numbers or any other means of payment shall be liable to imprisonment, a fine or both. electronically using the Internet or any electronic means.

– Mohammad Al Najar, lawyer

Protecting the rights of bank customers

“The penalty is either imprisonment, a fine, or both, for anyone who gains unauthorized access to credit, electronic card numbers, data, bank account numbers or any other means of electronic payment using the Internet or any computer means. The UAE has protected the rights of its banking customers if their accounts are hacked,” Al Najar explained.

According to Article 12 of the Federal Law No. 5 of 2012 of the United Arab Emirates, the penalty shall be six months imprisonment and a fine of Dh100,000 to Dh300,000 or one of these two penalties. . “If a person illegally obtains funds belonging to others, whether for himself or others, then the offender shall be sentenced to one year in prison and fined between Dh200,000 and Dh1 million or either these two penalties will apply.

cybercriminality

Last year, residents of the United Arab Emirates were targeted by cybercriminals posing as representatives of e-commerce or delivery companies, asking for customers’ bank details to make a delivery, according to an Emirates-based bank official. United Arabs.
Image credit: Pixabay

What do banks say about credit card fraud?

Kartik Taneja, Executive Vice President and Head of Payments at Mashreq Bank, discussed “phishing” attacks and scams involving a form of “social engineering”, in which cybercriminals attempt to request or access sensitive financial information, such as credit card numbers or one-time passwords (OTPs) typically sent by a bank, to complete a transaction.

“Last year, residents of the United Arab Emirates were targeted by cybercriminals posing as representatives of e-commerce or delivery companies, asking for customers’ bank details to make a delivery. Although the details of the shipment were not specified, the call itself aroused some curiosity in the customer,” Taneja said,” he added.

Dispute fraudulent transactions

Taneja said customers have the right to dispute any disputed or suspicious transactions and file a complaint with the police against fraudsters if their location is determined. “There are already well-established rules for disputed transactions and chargebacks, as defined by companies such as Mastercard and Visa. Typically, once a request is received, banks around the world carefully review the unique circumstances of each case and use their expertise and knowledge of different “types of disputes” to arrive at a decision,” said added Taneja.

In most cases, a dispute investigation can take 8-12 weeks to complete.

Once a request is received, banks around the world carefully review the unique circumstances of each case and use their expertise and knowledge of different “dispute types” to arrive at a decision.

– Kartik Taneja, Executive Vice President and Head of Payments, Mashreq Bank

According to Taneja, banks can choose to extend temporary credit to the affected customer so that they have sufficient funds to meet their immediate spending needs. “At Mashreq Bank, for example, it is our policy to immediately provide all eligible customers with temporary credit equivalent to the disputed amount, so that their spending needs are met,” he added.

Coping with the sequel

Taneja said that first, it’s important to immediately block your credit or debit card and change any passwords related to cards that may have been compromised. “You can usually do this without going to a branch, via the internet or mobile banking. Then you should report the scam to your bank to attempt to recover your funds.

One of the most common misconceptions is that a bank can “stop” a fraudulent transaction after it has already taken place. “Generally, all transactions are approved by the bank after successful authorization. Depending on the sophistication of your bank, it may use high-tech capabilities to detect transactions that match potentially fraudulent transactions and block them,” Taneja said.

“However, if a transaction has already been approved, the bank cannot cancel it. It is then the responsibility of the banks involved to work with the customer as well as other stakeholders to maximize the chances of recovery” , said Taneja.

Share.

About Author

Comments are closed.