Bankers meeting Monday on cyber fraud

By Leonidas Stergiou

The increase of card fraud cases by 50% and electronic payments by almost 300% since the beginning of the pandemic has activated the competent authorities and the banks, which are launching a new consumer information campaign.

On Monday, a large meeting is scheduled with the participation of banks, the Bank of Greece and competent law enforcement authorities and consumer associations in order for all bodies to align themselves with the information campaign in view of the holidays. Already, quantitative and qualitative research shows that a large increase in consumption and purchases by digital media is expected shortly before Christmas.

Already, the Hellenic Banking Association has posted on its website three infographics where it describes the three most common forms of fraud that can disrupt even bank accounts. Regardless of the typology of each scam, the only and most powerful weapon is not to reveal the codes of the internet or mobile banking and the cards.

Also, the consumer should suspect and contact the mobile phone company immediately, if he sees his cell phone without today, without any reason. This is an indication of a very common form of fraud called SIM Swapping. The scammer finds a way to copy the victim’s mobile SIM, so that he receives the messages with the verification codes for entry in internet banking, for example. However, here too, the scammer’s first victory is to extract at least one personal item from the victim, such as the mobile banking username and password or the TIN, etc.

At the same time, banking systems, in conjunction with all e-commerce platforms and mobile phone companies, have been on high alert since the pandemic hit online markets and fraud. Suffice it to say that in 2020 to date up to 30 cases of fraud have been reported in one day by a bank.

According to data from the Bank of Greece, the amount of fraud is not small for every consumer, if we take into account that 1,179 cases of fraud were detected in money transfers via mobile and internet banking in 2020, with an average loss of about 5,000 euros (total loss 12 million . euro). In card transactions, the total value of the fraud is about the same, ie 6.2 million euros. The average value of a card transaction is lower and ranges around 40-50 euros.

Regarding the division of the loss, the data of the BoG show that 50% of the loss in case of card fraud is borne by the service provider who accepts the transaction, while the remaining amount is shared by the consumer and the bank. Regarding the highest amounts per fraud, ie money transfers, the information states that most of the time, the amount is charged to the bank’s customer, as negligence or misuse of consumer protection occurs.