Swazi Observer

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BANK-RELATED FRAUD INCREASES BY 53 PER CENT TO E7.6MILLION

By Nomfanelo Maziya | 2024-11-15

Reported bank-related fraud cases have surged by 53.3 per cent compared to the previous year.
The financial loss incurred due to these fraudulent activities totalled E7.6 million.

This is according to Eswatini Bankers Association (eba) Chairman Mvuselelo Fakudze, speaking during the Fraud Awareness Month launch held at Royal Villas yesterday.

He said there were more fraudulent activities that were mitigated by banks and far acceding those that successfully went past the various banks.

One of the most prevalent forms of fraud, account takeover, accounted for 36.4 per cent of all reported cases, totalling E2.9 million.

Fraudsters employ various tactics to deceive unsuspecting victims into sharing their sensitive login credentials, including passwords, PINs and one-time pins (OPTs)

Once in possession of this information, they gain unauthorised access to victims’ accounts and siphon off funds.

Online fraud, where fraudulent transactions were conducted without physical card presence, resulted in losses of E1.8 million, constituting 25 per cent of the total reported cases.

This type of fraud often involved victims unknowingly sharing their card details on spoofed websites during online shopping or trading activities. Advanced fee scam, which involved requesting upfront payments for promised services of products that are never delivered, led to losses of E1.3 million, accounting for 18 per cent of the total cases.

These scams were increasingly prevalent on social media platforms.
Other notable fraud types highlighted by the chairperson were business email compromise (E603 855.57), fake proof of payment statements (E287 572.22), ATM fraud (E190 577.99) as well as employee fraud (E505 400.03)

To address this alarming trend, several key strategies must be implemented such as education and awareness, enhanced authentication methods, advanced monitoring and detection as well as industry collaboration and information sharing, according to Fakudze.

Empowering customers and employees through robust training programmes and informational campaigns to recognise fraudulent activities and protect personal information would enhance the mitigation of such crimes.

Furthermore, leveraging multi-factor authentication and biometric verification to strengthen account security and deter fraudsters would also enhance efforts. Another measure highlighted by Fakudze was the utilisation of advance analytics and monitoring tools to identify suspicious patters in account activities would ensure swift action to prevent losses.

He also encouraged fostering collaboration among industry stakeholders to share insights, best practices and information on emerging threats.

Fakudze so highlighted that providing robust support systems for victims of fraud to report incidents and receive immediate assistance as a mitigation measure.

“Fraud remains one of the pressing threats facing our financial institutions, economies and community cohesion,” said Fakudze.

Each year, the staggering sums lost to fraudulent activities run into the millions, devastating repercussions on individuals, businesses and the economy.
“The toll expands beyond monetary losses, impacting trust and affecting the very fabric of our society,” said Fakudze.

EBA joins global institutions this week to commemorate the International Fraud Awareness week under the theme ‘Be aware. Connect with care. Be vigilant’

“this week we strengthen our shared mandate as banks to partner with our various stakeholders in government and society in the fight against fraud,” he said.

The collaboration cultivates a stronger approach to fraud prevention and inculcates a deeper, communal understanding of the nuanced risks faced.

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